The Agriculture and Food Authority (AFA) on Tuesday, May 28 announced the timeline when all food crop importers and exporters will start paying a new levy.
In a notice, the Authority revealed that the new levy had been outlined in the Crops (Food Crops) Regulations 2019 and will be payable starting July 1, 2024.
These regulations were developed by the Authority together with the Ministry of Agriculture and Livestock Development and relevant stakeholders to guide the promotion, development and regulation of production, processing and trade of the scheduled food crops.
The regulations were gazetted 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 regulations apply to food crops such as cereals, legumes, as well as 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 cereals will need to pay 2 per cent of the customs value while those exporting the commodity will pay 0.3 per cent of the customs value.
Kenyans who will be importing legumes will also be required to pay 2 per cent of the customs value and 0.3 per cent for exports.
On the other hand, those exporting roots and tubers will be required to pay 1 per cent for imports and 0.3 per cent for exports.
"You are required to take note of this development and prepare to comply," read the notice in parts.
The 2019 regulations explain that the imposed levy shall be based on the Free on Board value of the food crops or food produce. The levy shall be paid at the point of exit or entry.
The levy should be paid to the Authority or an appointed agent. The levy should not be paid later than the tenth day of the next month.
If a person fails to pay the levy within the set timeline, they will pay the levy and an interest of 25 per cent of the outstanding amount and a compound interest of 12 per cent of the outstanding amount.
"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.
