Authority grants import levy exemption for nuts and oil crops from EAC countries
According to AFA, the move aims to reduce costs for companies operating within these zones, which will no longer be required to pay import levies on nuts and oil crops sourced from EAC member states.
The Agriculture and Food Authority (AFA) has granted an import levy exemption to companies operating within Export Processing Zones (EPZs) and Special Economic Zones (SEZs) for nuts and oil crops imported from East African Community (EAC) countries, effective April 17, 2025.
According to AFA, the move aims to reduce costs for companies operating within these zones, which will no longer be required to pay import levies on nuts and oil crops sourced from EAC member states.
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The exemption follows amendments to the Crops (Nuts and Oil Crops) Regulations, 2020, as outlined in Legal Notice No. 26 issued by the Cabinet Secretary for Agriculture and Livestock Development, Mutahi Kagwe, on February 14, 2025.
In a statement, AFA explained that the move forms part of its mandate under the Crops Act, 2013 and the AFA Act, 2013, to regulate and promote the nuts and oil crops sub-sector.
“On February 14, 2025, the Cabinet Secretary for Agriculture and Livestock Development, through Legal Notice No. 26, amended the Crops (Nuts and Oil Crops) Regulations, 2020, to align with Sections 101 and 102 of the Finance Act, 2023,” stated AFA.
“The amendment exempts nuts and oil crops produce and products imported by Export Processing Zones (EPZ) and Special Economic Zones (SEZ)-based enterprises and originating from the customs territory (EAC partner states), as defined in the Special Economic Zones Act and the Export Processing Zones Act, from paying the import levy,” AFA added.
The new exemption applies to nuts and oil crops imported by EPZ and SEZ-based enterprises from EAC partner states, which include the Democratic Republic of the Congo, Burundi, Rwanda, Somalia, South Sudan, Uganda, and Tanzania.
AFA noted that the move will promote more efficient trade practices within the region, making it easier for Kenyan companies to source raw materials for the agro-processing industry.
The exemption is also expected to lead to reduced production costs, enabling businesses to become more competitive in both local and international markets.
The Authority further confirmed that businesses will be able to access additional guidance on implementing the exemption through the KenTrade Trade Facilitation Platform (TFP) ahead of its rollout.
“In reference to Section 32(2) of the Crops Act, 2013, this exemption will take effect from April 17, 2025. The Authority will provide guidance on the implementation of this change on the KenTrade TFP portal before the effective date.”
AFA has urged stakeholders in the EPZs and SEZs to familiarise themselves with the new regulation.
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