Enterprises operating in Export Processing Zones (EPZ) and Special Economic Zones (SEZ) will now benefit from a 35 per cent import levy exemption on nuts and oil crops brought in from East African Community (EAC) partner states.

This follows the enforcement of Legal Notice No. 26, which was published by the Cabinet Secretary for Agriculture and Livestock Development on February 14, 2025.

In a statement, the Agriculture and Food Authority (AFA) said the exemption is in line with the Special Economic Zones Act and the Export Processing Zones Act.

AFA director general Dr. Bruno Linyiru says that companies operating within these economic zones will not be required to pay the import levy on such imports, as defined by the Special Economic Zones Act and the Export Processing Zones Act.

“This is as defined in the Special Economic Zones Act and the Export Processing Zones Act from paying the import levy. The EAC partner states include Democratic Republic of the Congo, Republic of Burundi, Republic of Rwanda, Federal Republic of Somalia, Republic of South Sudan, Republic of Uganda, and United Republic of Tanzania,” said Dr. Linyiru.

Dr. Linyiru announced that the exemption will take effect from April 17, 2025, in accordance with Section 32(2) of the Crops Act, 2013. He added that AFA will offer detailed guidance on how to implement the new changes through the KenTrade Trade Facilitation Platform (TFP) portal before the start date.

AFA boss urged stakeholders involved in the nuts and oil crops value chain to take note of the change and seek clarification from the Authority if needed. He emphasized the importance of complying with the updated regulations. The 2020 Crops (Nuts and Oil Crops) Regulations had previously outlined levies for both imports and exports, and this marks significant shift for enterprises operating in EPZs and SEZs.

The move is expected to ease operational costs for businesses in these zones and promote regional trade within the EAC bloc.