Kenya’s new food tax risks trade spat with Tanzania

Rice storage

Workers arrange bags of rice at a storage facility in Ahero.

Photo credit: File | Nation

A new food import levy imposed by Kenya’s crops regulator risks triggering a fresh standoff between Kenya and Tanzania amid protests by traders.

The 2.0 percent levy on the customs value of cereals and legumes entering Kenya— introduced by the Agriculture and Food Authority (AFA) this week — will see traders pay an extra Ksh20,000 per truckload of maize and Ksh50,000 for rice. This is in addition to other charges the traders have been paying to different government agencies.