In a move set to spur industrial growth and reduce dependence on imports, the government has scrapped import levies on nuts, oil crops, and related products for enterprises operating within Export Processing Zones (EPZ) and Special Economic Zones (SEZ).
The exemption, announced Thursday by Agriculture Cabinet Secretary Mutahi Kagwe through Legal Notice No. 26, amends the Crops (Nuts and Oil Crops) Regulations 2020.
The decision is expected to improve access to raw materials for processors, stimulate local manufacturing, create jobs, and increase foreign exchange earnings. It also aims to align Kenya’s edible oil supply chain with national goals of food security and economic resilience.
“The industry contributes 1.2 percent to the national GDP and about 4.5 percent to the agricultural GDP, yet we still rely heavily on imported edible oil,” said Dr. Bruno Linyiru, Director General of the Agriculture and Food Authority (AFA).
In 2021 alone, Kenya imported edible oil worth Sh115 billion, according to official figures—a gap the government now hopes to narrow through smarter policies.
Strategic Import Substitution
The new directive applies to 13 key crops including sunflower, macadamia, coconut, cashew, soybeans, Bambara nuts, and safflower, among others. It specifically targets imports from East African Community (EAC) member states, enhancing regional integration while supporting domestic processors.
“This will allow us to align incentives with potential,” Linyiru said. “We urge all stakeholders to take note of these changes.”
The AFA, operating under the Crops Act 2013, will roll out a clear implementation roadmap via the KenTrade Trade Facilitation Platform ahead of the effective date.
Driving Local Production
While the policy offers immediate relief to processors, it also forms part of a broader strategy to ramp up domestic production of oil crops such as sunflower, canola, and soybeans.
By removing fiscal bottlenecks, the government hopes to attract investment into processing and value addition, positioning Kenya as a regional hub in the nuts and edible oils value chain.
