editor
Kenyan traders are protesting the government’s decision to impose new levies on cereals, legumes, herbs, and tubers, arguing that these measures violate regional trade agreements.
According to the new policy enacted by the Agriculture and Food Authority (AFA), a 2% levy will be applied to the customs value of grain imports, and a 0.3% levy will be charged on grain exports. For legumes, the policy imposes a 2% import levy and a 0.3% export levy, while roots and tubers will face a 1% import levy and a 0.3% export levy.
The introduction of these levies has sparked significant backlash from traders, shippers, and clearing agents. They argue that the new charges are inconsistent with East African Community (EAC) protocols and provisions of the Common Market for Eastern and Southern Africa (Comesa) bloc, which are designed to facilitate trade among member states by reducing barriers and promoting the free movement of goods. Traders claim that these levies will increase the cost of trading, disrupt business operations, and negatively impact the regional economy.
In response to the criticism, the AFA has defended the policy, stating that the levies are intended to enhance revenue collection and ensure the quality of imported agricultural products. The Authority maintains that these measures are necessary for the sustainable management of agricultural trade.
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Despite these justifications, the traders’ concerns have prompted the AFA to agree to engage in discussions with industry stakeholders. The aim of these talks is to address the traders’ objections and evaluate the potential economic effects of the new levies.
The outcome of these discussions will be closely monitored, with potential adjustments to the policy depending on the feedback from the trading community.
