TAXATION

Handling GMO to cost you Sh5,500 per consignment in new levies

Those involved in the distribution or sale of GMO food, feed, and processed products will pay Sh30,000.

In Summary

•For containment facilities that handle GMOs, an annual inspection fee of Sh10,000 will be charged.

•The notice further says that, inspections of records, the GMO register, and applications will require a facilitation fee of Sh10,000.

Kenya Peasants League Policy Chief Advisor, Sidi Otieno trains students during a three-day workshop on GMO myths and facts in Gilgil, May 28, 2023.
Kenya Peasants League Policy Chief Advisor, Sidi Otieno trains students during a three-day workshop on GMO myths and facts in Gilgil, May 28, 2023.
Image: LOISE MACHARIA

Kenyans will now have to part with Sh5,500 for every consignment of genetically modified organisms products that are handled at the country’s entry and exit points.

This is after the National Biosafety Authority (NBA) announced the implementation of new fees related to GMOs, handling, operation and storage in the country.

The new charges that will come into place beginning October 1, 2024, are part of the authority's regulatory framework aimed at ensuring safety and compliance in the handling, distribution and sale of GMO products.

In the implementation, the issuance of GMO-Free Certificates will now cost Sh5,500 per consignment, and an extra Sh2,000 per sample of GMO tested using lateral strips. However, the latter will be on a request-and-need basis.

“Consignment means a cargo weighing up to 40 metric tonnes (One lot). Cargo weighing more than 40 tonnes will be charged based on the number of lots at a flat rate per lot,” National Biosafety Authority said in a notice to the public.

Currently, the authority has been leveraging the same charges irrespective of the quantity of GMO products.

For example if someone is importing 1,000 kilos or one tonne, the charges are at Sh1,000. If another person is importing 10, 000 bags or 10 tonne the charges are also at Sh1,000.

For containment facilities that handle GMOs, an annual inspection fee of Sh10,000 will be charged, with transport costs calculated at automobile association rates per kilometer.

The move comes just months after Kenya received the go-ahead to roll out the cultivation and importation of GMOs, after the Environment Court dismissed a case challenging the same.

In a judgment delivered on October 12, 2023, the court said the petitioners did not provide evidence that GMOs harm the environment or human health, meaning that Kenya is now free to roll out GMOs.

The notice further says that inspections of records, the GMO register, and applications will require a facilitation fee of Sh10,000.

Additionally, businesses dealing in wholesale or retail of GMO products must obtain an annual permit at a fee of Sh1,000.

Handlers and operators involved in the distribution or sale of GMO food, feed, and processed products will face a higher annual licensing cost of Sh30,000.

For companies wishing to use GMO-free stickers, fees will be tiered based on their annual turnover.

The plan will see the authority issue label description and the unique identification numbers of which the cost will be met by the operator.

Firms with an annual turnover of more than Sh10 million will pay Sh30,000 per year, while those earning between Sh1 million and Sh10 million will be charged Sh20,000.

Firms with an annual turnover below Sh1 million will pay Sh10,000 annually.

Organisations looking to offer training on GMO in the country have not been spared either, as NBA says that registration and training of institutional biosafety committees will cost up to Sh100,000.

The registration of the committees will cost them Sh20,000 with an annual renewal fee of Sh10,000.

If companies dealing with GMO would like some of their information to be kept confidential, the application to review the proposal will cost them Sh20,000.

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