INCREASE

Timber prices set for sharp increase in new permit fees

Kenya Forest Services has made major changes in the computation of timber movement permit fees, and charcoal.

In Summary

• Kenya imports most of its timbers from Tanzania, Uganda and DR Congo where major products are rough sawn timber, pine, teak and mahogany.

• The permit however does not apply to small quantities such as head-load of firewood and less than three bags of charcoal meant for domestic use.

Carpenter Cyprian Kimanthi at his shop along Manyanja Road, Nairobi /HANDOUT
Carpenter Cyprian Kimanthi at his shop along Manyanja Road, Nairobi /HANDOUT

Timber prices in Kenya are set for a sharp increase as new permit fees hit imports, with spiralling effects expected in furniture prices and construction costs.

Kenya Forest Services has made major changes in the computation of timber movement permit fees, effective July 13, with persons moving timber across borders now required to pay Sh25,570 for the permit, up from Sh2, 000.

This includes a Sh20, 000 consignment fees, VAT at 16 per cent, movement permit fee at Sh2, 000, and eCitizen fees at Sh50 per transaction.

Charcoal is being charged Sh30 per bag for the movement permit, VAT at 16 per cent and an ECitizen fee (per transaction) of Sh50. Non-wood forest products are charged Sh2 per kilogramme, VAT at 16 per cent and the Sh50 eCitizen transaction fee.

“All payments are made only through the eCitizen platform,” the KFS’s Malaba One stop Border Post office said in a memo seen by the Star, written on July 10.

The forest produce movement permit valued for three days captures consignment details, vehicle registration number, date of transportation, origin and destination among others.

The permit however does not apply to small quantities such as head-load of firewood and less than three bags of charcoal meant for domestic use.

It is also not applicable to forest produce purchased from a licensed saw miller and accompanied by an official advisory note. Transport of forest produce must be done during daytime hours of between 6am and 6pm.

The latest development now stets ground for a possible increase in prices across the supply chain, with buyers of furniture products and other consumers bearing the final costs.

A spot check by the Star yesterday indicated prices had already gone up two months ago, with the new permit rates threatening to further push up the costs.

Mahogany for instance (12 by 12 beam) is costing an average Sh300 per foot at timber yards up from Sh280 in the first quarter of this year.

The same is going for an average Sh320 per foot at smaller dealerships that get their stocks from the yards for onward selling to small players such as carpenters.

Pine (6 by 1) is going for an average Sh40 per foot, while roofing cypress costs an average Sh33 per foot for a 2 by 2 piece. The prices differ on the type of timber and size.

“Timber prices have been unpredictable of late. Every time we go for purchases the price has always been up by between Sh10 and Sh20. This means we have to pass the costs to our customers whom on the other side complain that there is no money,” Cyprian Kimanthi, who runs Starmark designers along Manyanja Road, Nairobi, told the Star.

Benson Mutuku, a timber yard owner in Embakasi, Nairobi, however said they are yet to receive any official communication on price changes.

 “If there are changes, then we should be given time to communicate the same to our customers,” he said.

John Okoth, a shop owner selling timber on wholesale said: “We know our customers work on a budget so we cannot just wake up one day and tell them that prices have doubled. They have prices that they have been working with when coming to make purchases.”

The demand for wooden products in the country outweighs the supply, forcing the country to import to bridge the deficit.

According to KFS head of forest conservation Alfred Gichu, the current demand for wood products has hit 45 million cubic metres against a supply of 30 million.

Kenya imports most of its timbers from Tanzania, Uganda and DR Congo where major products are rough sawn timber, pine, teak and mahogany.

Data by international export-import intelligence firm-Volza shows Tanzania accounted for the maximum share of Kenya’s imports last year, with 9,063 shipments, followed by DRC 4,372 and Uganda in that place with 4,372 shipments.

The Economic Survey 2024 indicates total sales of timber from government forests increased from 378,000 cubic metres in 2022 to 1.5 million metres in 2023.

“Sale of softwood timber increased from 4.2 thousand true cubic metres in 2022 to 148.5 thousand true cubic metres in 2023 largely attributable to lifting of the ban on logging," the survey by the Kenya National Bureau of Statistics shows.

The sale of fuel wood/charcoal more than doubled from 15.5 thousand stacked cubic metres in 2022 to 35.9 thousand stacked cubic metres in 2023.

There was no recorded sale of power poles in 2023.

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