The Kenyan government has exempted enterprises in Export Processing Zones (EPZs) and Special Economic Zones (SEZs) from paying import levies on nuts and oil crops originating from East African Community (EAC) member states.
Agriculture Cabinet Secretary Mutahi Kagwe, through the Agriculture and Food Authority (AFA), announced the change via Legal Notice No. 26. The amendment aligns the Crops (Nuts and Oil Crops) Regulations 2020 with Sections 101 and 102 of the Finance Act 2023.
“This exemption takes effect from April 17, 2025,” said AFA Director General Dr. Bruno Linyiru, noting that the changes apply to products defined under the SEZ Act. He added that the AFA will issue further implementation guidance through the KenTrade Trade Facilitation Platform (TFP) portal ahead of the enforcement date.
The East African Community comprises Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan, Somalia, and the Democratic Republic of the Congo. The exemption is expected to enhance intra-regional trade, stimulate local manufacturing, and reduce the cost of raw material imports for processors in Kenya’s SEZs and EPZs.
Kenya’s nuts and oil crops sub-sector, although contributing only 1.2% to national GDP and 4.5% to agricultural GDP, holds vast potential for enhancing food and nutritional security, job creation, and foreign exchange earnings.
Despite this potential, the country remains heavily reliant on imported edible oil. In 2021 alone, Kenya imported KSh115 billion worth of the commodity. To address this gap, AFA is spearheading an edible oil crops promotion project targeting increased production of crops such as sunflower, canola, soya, and coconut.
There are currently 13 regulated nuts and oil crops in Kenya, including cashew, coconut, macadamia, sesame, sunflower, canola, peanuts, oil palm, Bambara nuts, jojoba, safflower, castor, and linseed.
The levy exemption is a strategic step towards self-sufficiency, encouraging investment in the value addition of agricultural products while aligning with national goals of import substitution and regional economic integration.
