Kenya Govt Announces New Tax On Imported, Exported Food Crops Effective July 2024
- Kenyan government projected that the country's exports will reach $10 billion (over KSh 1.5 trillion) by 2030
- However, the Agriculture and Food Authority (AFA) announced the imposition of levies on imports and exports of food crops
- Importers and exporters of these products into the country are expected to comply with the new tax that will take effect in July 2024
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TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.
Importers and exporters of food crops in Kenya will have to part with a new levy effective July 1, 2024.
The Ministry of Agriculture and Livestock Development under the Agriculture and Food Authority (AFA) announced the imposition of the levy following Food Crop Regulations 2019.
Which taxes will food crop importers and exporters pay?
In a public notice, AFA directed all food crop importers and exporters to comply with the new tax regulations published on December 31, 2019.
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"AFA, in conjunction with the Ministry of Agriculture and Livestock Development and relevant stakeholders, drafted Food Crops Regulations 2019 to guide the promotion, development and regulation of production, processing and trade of the scheduled food crops," read AFA's notice in part.
According to the regulations, cereals, legumes and pulses imported into the country will attract a custom value of 2%.
Exporters of these food crops, including roots and tubers, will pay 0.3% in customs value.
Roots and tubers imported will attract a 1% customs value, as provided for in regulation 37 sub regulations (1) and (8).
Kenya's food crop export
AFA listed maize, wheat, rice, potatoes, Green grams, and beans among the country's main food crops.
A report by the Royal Geographical Society showed that leguminous vegetables (peas, beans, mange tout) constitute the largest proportion of Kenyan imports to the UK.
The value of Kenyan exports rose to KSh 873.1 billion in 2022, but the trade deficit worsened due to the increase in imports.
Horticulture Crops Directorate revealed that earnings from the sector increased from KSh 147.1 billion in 2022 to KSh 156.69 billion in 2023.
Kenya earned KSh 153.8 billion in the first 11 months of 2023 by exporting 511 million kilogrammes of tea.
Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.
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The Ministry of Agriculture notified importers and exporters of food crops about the new levy effective July 2024.
Kenya Govt Announces New Tax on Imported, Exported Food Crops Effective
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