New Levy Targets Export And Import Of Food Crops Starting July
On Tuesday, May 28, the Agriculture and Food Authority (AFA) revealed the schedule for all food crop importers and exporters to begin paying a new fee.
In a notice, the Authority stated that the new charge is established in the Crops (Food Crops) Regulations 2019 and will be payable beginning July 1, 2024.
The Authority, in collaboration with the Ministry of Agriculture and Livestock Development and key partners, produced these regulations to govern the promotion, development, and regulation of scheduled food crop production, processing, and trading.Â
The regulations were published on December 31, 2019.
“Under the provisions of these regulations, the Authority through the Food Crops Directorate hereby notifies all food crops importers and exporters that starting 1st July 2024, the imposition of levies will commence,” the Authority announced.
The laws apply to food crops such as grains, legumes, roots, and tuber crops.
These include sweet potatoes, cassava, beans, cowpeas, peas, soya beans, rice, oats, maize, barley, wheat, and sorghum, among others.
According to the Authority, Kenyans importing grains will be required to pay 2% of the customs value, while those exporting the product will pay 0.3% of the customs value.
Kenyans who import legumes will be compelled to pay 2% of the customs value and 0.3% for exports.
Exporters of roots and tubers, on the other hand, will have to pay 1% for imports and 0.3% for exports.
“You are required to take note of this development and prepare to comply,” read the notice in parts.
The 2019 regulations state that the imposed fee will be based on the Free on Board value of the agricultural crops or food production.
The levies must be paid at the point of exit or entry. It should be paid to the Authority or its designated agent. The fee shall be paid no later than the tenth of the next month.
If a person fails to pay the levy within the specified time frame, they must pay both the levy and 25% interest on the unpaid amount, as well as 12% compound interest.
“The levy imposed shall be used for the operation of the authority, development of the food crops subsector and any purpose as may be approved by the Authority,” the regulations read in part.
New Levy Targets Export And Import Of Food Crops Starting July
