Fresh produce exporters have lost a bid to stop the government from imposing a 0.25% levy on the customs value of their export consignments.
High Court Judge Anthony Mrima dismissed the case filed by the Fresh Produce Exporters Association of Kenya (Fpeak), Fresh Produce Consortium of Kenya, Avocado Society of Kenya and Avocado Exporters Association of Kenya.
Mrima said they failed to prove how the disputed regulations infringed Article 201 of the constitution. It provides that there shall be openness and accountability including public participation in financial matters.
The Judge said he was convinced there was adequate public participation and consultation.
“The petitioners and the interested parties were accorded ample opportunity and they presented their case. The problem seems to have been that their proposals were not adopted as the final position on the matters,” he said
The petitioners wanted the court to quash the 2020 crop regulations terming them unconstitutional.
Also sought was an order stopping the Agriculture ministry and other players from imposing, charging or enforcing collection of the fee.
They argued that the regulations were gazetted by the Agriculture CS without stakeholder and public participation. They termed the regulations oppressive.
The petitioners further argued that the regulations would overburden them and their members as they already pay more than forty fees in terms of levies, licenses, taxes and permits.
But Mrima in dismissing the case said the types of the levies and names of the licenses within the horticulture industry were not disclosed.
“There was no expert evidence tendered save the averments by the petitioners through affidavits. They seemingly made blanket averments which were not supported by evidence,”
He further said the alleged oppressive manner occasioned by the disputed levies had to be demonstrated at least by an expert as against the other sectors.
Those sued were CS Agriculture, Attorney General, Agriculture and Food Authority and horticultural crops directorate.