The 7 Percent Tax on Avocado Exports To Hurt Farmers

By Jane Muia / Published August 8, 2022 | 12:49 pm

KEY POINTS

Kenya started exporting avocados to China a week ago after the country cleared 15 Kenyan firms to export avocados to its market.

KEY TAKEAWAYS

Recent data published in the Kenya Economic Survey 2021 confirm that earnings from exports of horticulture produce increased by 3.9 percent from KSh 144.6 billion in 2019 to KSh 150.2 billion in 2020.

With the introduction of new high-potential markets such as China, Kenya has been expecting a growth in the value of horticultural exports. The country has now raised concerns about the 7 percent tax imposed by china on the Kenyan avocado in a move to protect farmers’ earnings.

The tax is said to likely deteriorate farmers’ earnings who are in anticipation of better profits, one week after the country entered the vast Chinese market.

“The seven percent import duty levied on Kenyan avocado exporters in China is high and eats into their earnings, and we want it to be suspended,” Head of Horticulture Directorate Benjamin Tito said.

Kenya started exporting avocados to China a week ago after the country cleared 15 Kenyan firms to export avocados to its market. According to the Kenya Plant Health Inspectorate (KEPHIS), Sunripe was the first Kenyan firm to be cleared for export, followed by Kakuzi Limited after recording clean health compliance as directed by the Chinese National Plant Protection Organisation (NPPO).

The export of fresh avocados to China follows the early January signing of two protocols to facilitate bilateral trade, mainly the export of avocados and aquatic products from Kenya to China. In March, China allowed Kenya to start exporting fresh produce. Shipping of the commodity to china would have commenced in May but it was not possible as China wanted to conduct a different audit.

In a recent communique to stakeholders, KEPHIS Managing Director, Prof Theophilus Mutui, said that the Chinese National Plant Protection Organisation (NPPO) had approved the commencement of fresh The new requirements by the Chinese market stipulate that producers and exporters seeking to export the commodity to china will have to ensure their farms, pack houses, and fumigation treatment facilities are registered by Kephis.

All the fresh produce meant for export must also be free from pests and must comply with the Chinese phytosanitary (Plant Health) laws and regulations.

Recent data published in the Kenya Economic Survey 2021 confirm that earnings from exports of horticulture produce increased by 3.9 percent from KSh 144.6 billion in 2019 to KSh 150.2 billion in 2020. avocado fruits exports from Kenya to China following the completion of a recent audit process.