Low Honey prices in Kenya as a result of VAT cut to 14%

In March 2020 Kenya's government decided to cut the value-added tax rate to 14% from 16% as part of a series of measures to help cushion the economy from the impact of the coronavirus outbreak. Producers and traders of food and agriculture products are automatically offering competitive prices in the market taking advantage of the cushion to the economy.

Honey is among the most demanded food product at the moment due to its health benefits and trader in Kenya are positioned well to aggressively sell the product at low prices. Export prices have also been lowered as the tax on products is decreased. The cut is applicable to all products in the country and good for exporters as they can now make more competitive offer prices.