Take advantage of the import duty waivers to reduce high food prices

The current food crisis in Kenya has seen food prices skyrocket, leading to public calls for the Government to lower food prices. Consequently, in gazette notices issued on 17 March 2023 the Government exempted import duty imposed under the East African Community Customs Management Act of 2004 for specific products imported into the country.

30 Mar 2023 2 min read Tax & Exchange Control Alert Article

At a glance

The Kenyan Government has issued gazette notices exempting import duties for specific food products in response to the food crisis and rising food prices in the country.
The exemptions include import duty waivers for raw materials used in animal feeds, such as yellow maize and soya bean meal, as well as for white maize grain and grade 1 milled rice.
Importers must meet certain requirements and import the specified products before 6 August 2023 to qualify for the import duty waivers. The waivers are expected to help lower food prices and reduce the cost of living.

The first exemption from import duty is in respect of raw material for animal feeds to arrive in the country on or before 6 August 2023. Eligible raw materials include yellow maize, soya bean meal, assorted protein concentrates, feed additives, enzymes and premix ingredients. The thresholds of the importation waiver are indicated in the table below:

Tax & Exchange Control Alert - 30 March 2023

Further, the imported yellow maize should have a moisture content not exceeding 14,5%; have aflatoxin levels not exceeding 10 parts per billion (ppb); be accompanied by a certificate of conformity issued by the Kenya Bureau of Standards (KEBS); and be used for the manufacturing of animal feeds only. Similarly, the imported soya bean meal should be accompanied by a certificate of conformity issued by KEBS; be used for the manufacturing of animal feeds only; and be imported before 6 August 2023.

Importation of maize shall also be duty free for registered millers and traders to import a total of 500,000 metric tons of white maize grain from March 2023 to 6 August 2023. The import duty rate without a waiver is 50%. To qualify for this waiver, the imported maize grain should have a moisture content not exceeding 13,5%; have aflatoxin levels not exceeding 10 parts per billion; be accompanied by a certificate of conformity issued by KEBS; and be imported before 6 August 2023.

Another import duty waiver has also been granted for traders to import a total of 500,000 metric tons of white grade 1 milled rice. The import duty rate for rice without the waiver is 75% or $345/MT, whichever is higher.

The waiver will apply to grade 1 rice imported into the country on or before 6 August 2023 by traders. The imported white milled rice grade 1 should be in accordance with international and national food/rice standards and Kenyan standards implemented by KEBS. It also ought to be accompanied by a certificate of conformity issued by KEBS and be imported on or before 6 August 2023.

Farmers, traders, manufacturers, and millers should consult their tax and legal advisers on how to access and take advantage of the waivers. It is expected that the waivers will result to a drop in food prices and in return contribute towards lowering the cost of living.

The information and material published on this website is provided for general purposes only and does not constitute legal advice. We make every effort to ensure that the content is updated regularly and to offer the most current and accurate information. Please consult one of our lawyers on any specific legal problem or matter. We accept no responsibility for any loss or damage, whether direct or consequential, which may arise from reliance on the information contained in these pages. Please refer to our full terms and conditions. Copyright © 2024 Cliffe Dekker Hofmeyr. All rights reserved. For permission to reproduce an article or publication, please contact us cliffedekkerhofmeyr@cdhlegal.com.