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Agriculture CS Kagwe tax boost for edible oil firms in special economic zones
Agriculture and Livestock Cabinet Secretary Mutahi Kagwe speaking during the release of the 2024 Tea Industry Performance Results at the East African Tea Trade Association (Eatta) in Mombasa on March 13, 2025.
Edible oil manufacturers operating within Export Processing Zones (EPZ) and Special Economic Zones (SEZ) have got a boost after Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe exempted them from paying a levy on nuts and oil crops and products imported from the East African Community bloc.
The exemption follows an amendment to the Crops (Nuts and Oil Crops) Regulations 2020 signed by Mr Kagwe, through Legal Notice No. 26 of April 14, 2025.
“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 (East Africa Community partner states), as defined in the Special Economic Zones Act and the Export Processing Zones Act, from paying the import levy,” Bruno Linyiru, Director General of the Agriculture and Food Authority said.
“In reference to Section 32(2) of the Crops Act, 2013, this exemption will take effect from April 17, 2025” he added.
This means that oil crops and nut products from EAC countries including the Democratic Republic of the Congo, Burundi, Rwanda, Somalia, South Sudan, Uganda, and Tanzania can now enter Kenya’s EPZ and SEZ hubs tax-free.
The Crops (Nuts and Oil Crops) Regulations 2020, provides for levies on imports and exports of nuts and oil crops produced and products.
It imposes an import levy of four percent of the Cost, Insurance, and Freight (CIF) per consignment of finished products. CIF is a method of exporting goods where the seller pays expenses until the product is completely loaded on a ship.
The Crops (Nuts and Oil Crops) Regulations 2020 also imposes a two percent import levy on the CIF of every consignment of raw materials. On the export side, the regulations have set a Sh2 per kg Free on Board(FOB) of raw produce and 0.25 percent of FOB on finished products.
FOB in cargo shipment defines the point in the supply chain when a buyer or seller becomes liable for the goods transported. Purchase orders between buyers and sellers set FOB terms and help determine ownership, risk, and transportation costs.
