Govt Announces Tax Exemptions For Imports of Nut And Oil Crops From East Africa

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Narobi Wire

The Ministry of Agriculture, through the Agriculture and Food Authority (AFA), has announced that the government will no longer charge import levies to some businesses importing nuts and oil crops.

In a statement on Tuesday, April 17, the AFA director general, Bruno Linyiru, noted that the exemption will apply to enterprises operating in Export Processing Zones (EPZ) and special economic zones (SEZ).

Additionally, the DG noted that the government will exempt levies on businesses importing nuts and oil crops from East African Community states, including the Democratic Republic of Congo, Burundi, Rwanda, Somalia, South Sudan, Uganda, and Tanzania.

The move, according to AFA, comes after the Agriculture Cabinet Secretary, Mutahi Kagwe,  amended the Crops (Nuts and Oil Crops) Regulations 2020 through a legal notice No. 26 on February 14, 2025, to align with sections 101 and 102 of the Finance Act 2023.  

Agriculture CS Mutahi Kagwe during a meeting with Italy Country Director for Kenya Mariatu Kamara on February 6, 2025.
Agriculture CS Mutahi Kagwe during a meeting with Italy Country Director for Kenya Mariatu Kamara on February 6, 2025.
Photo
Ministry of Agriculture

"The Agriculture and Food Authority is responsible for regulating, developing, and promoting the nuts and oil crops sub-sector as per the Crops Act 2013, AFA Act 2013," it stated.

"The amendment exempts nuts and oil crop produce and products imported by EPZ and SEZ-based enterprises and originating from the customs territory (East Africa Community partner states), as defined in the Special Economic Zones Act and the Export Processing Zones Act, from paying the import levy," he added.

According to the Authority, the directive will come into play on Thursday, April 17. Bruno has assured the public that the authority will provide more information on the implementation of the change.

"We urge all stakeholders to take note of these changes. For further clarification, please contact the Authority," it added.

This comes a month after Sudan suspended all imports from Kenya after the Rapid Support Forces (RSF), who are challenging the army in a two-year civil war, formed a parallel government in Nairobi.

In a notice on Thursday, March 13, Sudan's Acting Minister of Trade and Supplies, Omar Ahmed Mohamed Ali, announced immediate restrictions on all imports from the country, barring entry via ports, railways, and air transport.

"The import of all products from Kenya via all ports, crossings, airports, and entry points is suspended starting from this date until further notice," he said.

Sudan imports several products from Kenya, including agricultural goods such as tea, food items, and pharmaceutical products.

However, 17 days later, after the ban, President William Ruto, speaking during an interview on Monday, March 31, claimed that the country has reversed its decision.

President William Ruto (right) when he held talks with the leader of Rapid Support Forces Gen Mohamed Hamdan Dagalo at State House, Nairobi on January 3, 2023. PHOTO
President William Ruto (right) when he held talks with the leader of Rapid Support Forces Gen Mohamed Hamdan Dagalo at State House, Nairobi on January 3, 2023.
PCS