Seed firms blame the influx of Tanzania vegetables in Kenya on 16 percent duty

Published 2022년 11월 30일

Tridge summary

Seed companies in Kenya are facing a significant challenge due to the competitive advantage of Tanzania's tomato and onion seed production. The lower cost of production in Tanzania, aided by the absence of a 16% duty and Value Added Tax (VAT) on vegetable seeds, has resulted in cheaper vegetables from Tanzania flooding the Kenyan market. This has negatively impacted the Kenyan seed industry, which is worth Sh15 billion. The Seed Trade Association of Kenya (STAK) is engaging the government to discuss the possibility of exempting duty on vegetable seeds to help Kenyan farmers compete. Additionally, STAK is promoting the local development of seeds to reduce reliance on imports and lower the cost of production.

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Original content

Seed companies have blamed the influx of vegetables from Tanzania on the cheap cost of production in the neighbouring country as it does not charge the 16 per cent duty on tomatoes and onion seeds, having a negative impact on the Sh15 billion industry. Seed Trade Association of Kenya-an umbrella body bringing together all the seed processors in the country, says the VAT levied on vegetable seeds locally has made Kenya’s produce uncompetitive in the market. STAK chairman Humphrey Kiruaye says onions, tomatoes and other vegetables from Tanzania that have become common in Kenya are way cheaper when compared with what is produced locally. ALSO READ: How farmers are turning tiny vegetable plots into 'green gold' “There are a lot of vegetables coming here in Kenya from Tanzania and that is because our product is uncompetitive in the market owing to the 16 per cent duty levied on seed,” said Mr Kiruaye. For instance, a kilogramme of tomato in Kenya is selling at Sh40 while the one ...

Source: Businessdailyafrica