Kenya faces Sh200b in export losses over new laws

By NICHOLAS WAITATHU

Over 40 agricultural organisations have warned that the recently enacted agricultural legislations if implemented in their current form would jeopardise exports, leading to a Sh200 billion foreign exchange loss.

The organisations said the country risked being banned from the external markets, for example, European and US, as there was no notification issued prior to the repeal of the 131 laws that previously governed the sector.

The laws ratified in January 2013 seek new organisation model in the agriculture sector with most of the regulatory bodies being abolished and others merged.

Under the umbrella of Agricultural Industry Network (AIN), the farmers’ organisations claim that the local economy is likely to be hurt as export commodities mostly tea, coffee, and horticulture produce will be slapped with precautionary bans by importers. 

AIN National chairman Edward Mudibo warned that key export markets such as European Union might issue precautionary bans of at least six months on Kenyan produce should Kenya fail to clarify how her exports will comply with existing export treaties. 

He said the industry players are planning to meet relevant bodies, parliamentary agriculture committee, and ministry of agriculture and the attorney general to initiate discussions on how to amend the legislations.

The agriculture industry stakeholders are seeking an indefinite deferment of the commencement of the AFFA Act 2013, Crops Act 2013 and the Kenya Agricultural Research and Livestock Act 2013 to allow for joint consultations between them and the Government.

Agriculture Cabinet Secretary Felix Koskei three months ago met the parliament agriculture committee and sought for an extension of up to December this year to have crafted a system to assist in effecting the new changes.

During the same month, President Uhuru Kenyatta appointed a taskforce to review mandate of the state corporations with the view to making them efficient.