The Government through the Agriculture and Food Authority (AFA) has announced the imposition of new taxes on imports and exports of all food crops produce to or from Kenya
In a May 28 notice, AFA noted that the new taxes on all food crop importers and exporters will be imposed effective July 1, 2024, as provided for in the regulation 37 sub regulations (1) to (8) of The Crops (Food Crops) Regulations, 2019.
AFA also revealed that the decision was made after consultation with the Ministry of Agriculture and Livestock Production cabinet secretary, county governments and other relevant stakeholders.
“The Authority through the Food Crops Directorate hereby notifies all food crops importers and exporters that starting 1″ July 2024, the imposition of levies will commence as provided for in regulation 37 sub regulations (1) to (8) of The Crops (Food Crops) Regulations, 2019,” reads part of the notice.
In the new rates, cereals will be imported at 2.o% of the custom value and exported at 0.3% whereas those importing legumes/pulses will pay 2.0% of the custom value as exporters will be required to pay 0.3% of the custom value.
Likewise, Kenyans who will be importing roots and tubers will pay 1.0% of the custom value and 0.3% for exports.
AFA further urged Kenyan exporters and importers of these food crops to prepare accordingly and comply.
“You are required to take note of this development and prepare to comply,” read the notice in part.
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AFA Crops (Food Crops) Regulations 2019
According to AFA, the Crops (Food Crops) Regulations 2019 drafted by relevant stakeholders is meant to guide the promotion, development and regulation of production, processing and the trade of all the scheduled goods.
“In furtherance of this section, the Authority in conjunction with the Ministry of Agriculture and Livestock Development and relevant stakeholders drafted The Crops (Food Crops) Regulations, 2019 to guide the promotion, development and regulation of production, Processing and trade of the scheduled food crops,” reads part of the notice statement.
AFA noted that these regulations were gazetted on 31 December 2019,
The regulations stipulate that there shall be a levy imposed on all food crops and food produce that are destined for export and such levy shall be based on the Free On-Board value of the food crops or food produce.
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Payment of the Food Crop Taxes
In addition, the levy imposed shall be payable at the port of exit or entry to the Authority or an appointed agent.
As per the regulations, the levy should not be paid later than the tenth day of the next month.
However, failure to pay the levy within the set timeline, will lead to a fine. A defaulter will pay the levy and an interest of 25 per cent of the outstanding amount and a compound interest of 12 per cent of the outstanding amount.
“The levy imposed shall be used for the operation of the authority, development of the food crops subsector and any purpose as may be approved by the Authority,” reads part of the regulations.
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