The government yesterday exempted enterprises in Export Processing Zones and Special Economic Zones from paying import levies on nuts and oil crops and related products originating from East African Community states.
Agriculture CS Mutahi Kagwe announced this through the Agriculture and Food Authority. Through legal notice No 26, the CS amended the Crops (Nuts and Oil Crops) Regulations 2020 to align with Sections 101 and 102 of the Finance Act 2023.
AFA director general Dr Bruno Linyiru said this is as defined in the Special Economic Zones Act.
“AFA regulates, develops and promotes the nuts and oil crops sub-sector as per the Crops Act 2013, AFA Act 2013,” he said. The Crops (Nuts and Oil Cops) Regulations 2020 provides for levies on import and exports of nuts and oil crops produce and products as prescribed in the regulations.
Besides Kenya, EAC partner states include Uganda, Tanzania, the Democratic Republic of the Congo, Burundi, Rwanda, Somalia and South Sudan.
“In reference to Section 32 (2) of the Crops Act, 2013, this exemption will take effect from April 17th April, 2025,” Linyiru said. The authority will provide guidance on implementation of this change on the KenTrade TFP portal before the effective date.
“We urge all stakeholders to take note of these changes,” the director general said.
The Kenya Economic Survey 2021 shows that the nuts and oil crops sub-sector contributes 1.2 per cent to the national Gross Domestic Product (GDP) and 4.5 per cent to the Agricultural GDP.
According to AFA, the sub-sector has huge potential towards food and nutrition security as well as manufacturing.
It also contributes significantly to job creation, income and foreign exchange earnings.
“Despite the high potential, the acreage and productivity of most nuts and oil crops remain low,” AFA says.
It adds that Kenya relies heavily on imported edible oil, and in 2021, the country imported Sh115 billion worth of the commodity.
“The country aims to achieve self-sufficiency and import substitution through increased production and productivity of oil crops, such as sunflower, canola, soya and coconut,” AFA nuts and oil crop directorate indicated.
“In this regard, the directorate is implementing an edible oil crops promotion project to bridge the production deficit.”
The Crops (Nuts and Oil Crops) Regulations indicate that there are 13 types of nuts and oil crops.
These are cashew, coconut, sesame (simsim), sunflower, macadamia, canola (rapeseed), peanuts, oil palm, Bambara nuts, jojoba, safflower, castor and linseed.
INSTANT ANALYSIS
The exemption from import levies for nuts and oil products from EPZ and SEZ zones enterprises aims to boost the sector's contribution to food security, manufacturing, job creation and foreign exchange earnings. The Agriculture and Food Authority will provide implementation guidance via the KenTrade portal.
