A storm of protest has erupted among traders in Kenya following the announcement of new agricultural produce inspection and phytosanitary fees by the Kenya Plant Health Inspectorate Service (Kephis). Set to come into effect on December 1, 2024, the new charges are poised to significantly impact the agricultural export and import sectors, with traders warning that the costs could make Kenyan products less competitive in the international market.
The new charges, which target both fresh produce exports and imports, are part of a broader push by Kephis to raise revenue. For exported fresh produce, traders will be required to pay 50 cents per kilogram, with a minimum charge of Sh100. Additionally, an extra Sh500 will be charged for each phytosanitary certificate and inspection. For imported agricultural products, the charges are similarly steep, with an additional Sh600 for each plant import permit, along with the 50 cents per kilogram charge. Moreover, traders will also face inspection fees ranging from Sh500 to Sh10,000 depending on the size of the vessels, aircraft, containers, and other physical tests, including moisture content determination.
Kephis, mandated to ensure the quality of agricultural produce and prevent the introduction and spread of pests and diseases, claims that these charges are necessary to maintain high phytosanitary standards. The agency argues that the inspection of imported and exported agricultural products, including ships, containers, aircraft, and wood packaging materials, is crucial for safeguarding the agricultural industry. The charges are set under the Kephis Act of 2012, the Plant Protection Act, and Legal Notice 48 of 2009, with the authority planning to fully enforce them starting December 1, 2024.
However, industry stakeholders, including the Shippers Council of Eastern Africa (SCEA), have voiced strong opposition to the new fees. The council argues that the additional charges will drive up the cost of doing business in Kenya, making the country’s agricultural exports less competitive in global markets. According to SCEA CEO Agayo Ogambi, the new fees will increase freight costs, leading to higher prices for Kenyan products in international markets, thereby reducing sales and earnings for the country.
“The new fees are unacceptable,” Ogambi stated. “They will lead to the uncompetitiveness of our exports.” He pointed out that the inspection fees for fresh produce, for instance, will amount to nearly Sh20,000 for a 40-foot container. “These charges are not in line with the services provided,” he added, emphasizing that businesses exporting large volumes of produce would face astronomical increases in their operating costs. For example, a company exporting 400 40-foot reefer containers of fresh produce would see their annual phytosanitary costs skyrocket from Sh600,000 to Sh4.6 million—an increase of 670 percent.
Shipping lines have already begun adjusting their fees to account for the new inspection and phytosanitary charges, further adding to the financial burden on traders. The cost per 40-foot reefer container, which typically holds around 22 metric tonnes of fresh produce, has risen from Sh1,500 to Sh11,000 for inspection. The phytosanitary certification fee has similarly increased from Sh500 to Sh11,500.
The new fees come at a time when Kenya’s agricultural export sector is already facing challenges, including declining export volumes and increasing competition from other countries. Data from the Kenya National Bureau of Statistics reveals that Kenya’s exports of cut flowers, fruits, and vegetables fell from 291,118 metric tonnes in the first half of 2023 to 214,676 metric tonnes in the same period in 2024. The fees are expected to hit key exports such as avocado, carrots, and high-value vegetables, which are integral to the country’s agricultural economy.
The introduction of these inspection and phytosanitary fees has sparked concerns over Kenya’s increasing reliance on levies to fund government agencies. Ogambi called for a rethinking of how these agencies are funded, arguing that the levies are making Kenya a more expensive place to do business and hurting the country’s competitiveness in global trade.
As Kenya grapples with rising costs and increasing competition in the agricultural sector, traders are calling on the government to reconsider the new inspection fees to avoid further jeopardizing the country’s agricultural exports. With the new fees set to take effect in just a few days, the industry is watching closely to see how the government responds to the growing outcry from traders and other stakeholders.
