This archive report was first published on 2 December 2019.
December 2, 2019, marked a significant challenge for Kenya's seed producers as they struggled to compete in the East African market due to a 16% value-added (VAT) tax levied on vegetable seed.
Chairman of the Seed Traders Association of Kenya, Kassim Owino, pointed out that the high cost of production in Kenya, which is 20% more than in neighboring states, further hampers their competitiveness.
"We cannot compete outside Kenya because of the 16% VAT that we pay on vegetable seed. We would like the government to abolish this levy to enable seed makers to take advantage of the regional market," Owino said.
Kenya is the only country in the region to charge a levy on seed production, making it difficult for local producers to sell their products in Uganda, Tanzania, Rwanda, and Burundi.
"Recently we saw VAT on pesticide abolished and we would like the same to be done on vegetable seeds," Owino added.
