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Importers will soon pay more for farm produce

Thursday October 05 2017
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Dockworkers off-load bagged rice from MV Tanzanite at the port of Mombasa, Kenya on September 30,217. PHOTO FILE | NMG

By JAMES ANYANZWA

Kenya is seeking to raise inspection and permit fees for imported agricultural produce to fund the operations of its loss-making Kenya Plant Health Inspectorate Service (Kephis).

The agency’s revenue collections have been shrinking while its expenditure has been expanding, with general expenses and staffing costs taking the lion’s share.

Last year, the agency’s losses widened to Ksh129.17 million ($1.29 million) from Ksh32.52 million ($325,200) in 2015.

According to the Kephis Act 2012, the agency relies heavily on funding from the exchequer, donations, loans, and statutory fees on the services it offers.

Kephis is responsible for ensuring the quality of agricultural inputs and produce imported into the country, to prevent an adverse impact on the economy, the environment and human health.

The EastAfrican has learnt the agency plans to increase import permit fees for each type of agricultural produce by Ksh400 ($4) to bolster its earnings.

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For example, the permit fee for importing cereals — maize, wheat, rice, barley, sorghum and millet — is expected to rise to Ksh1,000 ($10), from Ksh600 ($6).

Kephis managing director Esther Kimani, told The EastAfrican that the changes had been informed by the high cost of living in the country.

She added that consultations with the stakeholders on the proposed price reviews are still ongoing.

Kenya’s overall inflation for August increased to 8.04 per cent from 7.47 per cent in July on account of increased cost of food and fuel.

The agency has also proposed new inspection fee for agricultural imports. The fee, last reviewed in 2009, currently stands at a fixed rate of 50 cents ($0.005) per kilogramme on all quantities of agricultural imports.

Inspection fee
In the proposed guidelines, the fee for quantities ranging from 0 to 20,000 kilogrammes stays at 50 cents per kilogramme. Bulk importers with consignments more than 1,000 tonnes will pay Ksh0.03 ($0.0003) per kilogramme.

Imports weighing 20,001 kilogrammes to 400,000 kilogrammes will attract an inspection fee of 25 cents ($0.0025) per kilogramme while those from 400,001 kilogrammes to 1,000 tonnes will attract 15 cents (Ksh0.15, $0.0015) per kilogramme.

Kephis organised meetings with stakeholders including importers and exporters starting October 1, to deliberate on the proposals.

Last year Kenya’s maize and wheat production declined to 37.1 million bags and 222,400 tonnes respectively from 42.5 million bags and 238,600 tonnes in 2015.

Meanwhile, the East African Community member states are expected to harmonise their import and export documents and procedures in a move aimed at facilitating trade in food and agricultural commodities within the region.

Inspection, certification

The inspection and certification procedures of plant and animal products are under the Sanitary and Phytosanitary (SPS) measures. Implementation of the SPS agreement is also expected to improve mitigation of risks arising from pests, diseases and food safety concerns.

At a bilateral meeting in Dar es Salaam in September, Kenya and Tanzania agreed that countries in the region that have not ratified the SPS measures should do so for the agreement to take effect. Only Tanzania and Burundi are yet to ratify the treaty.

READ: EAC health, safety rules harmonised

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