The Ministry of Agriculture wants value-added tax (VAT) on agricultural inputs and processing of commodities to be zero-rated to increase competitiveness of Kenya's products.
Agriculture Cabinet Secretary Mutahi Kagwe has said that reviewing and harmonising of the tax regime around import duty, value added tax (VAT), exercise duty for agricultural related inputs, primary agro-processing and packaging materials will enhance competiveness of the sector.
The CS also called for zero rating of VAT on machinery and packaging materials used in agro-processing be zero-rated to encourage value addition. "All agricultural pesticides and fertilizers should be reverted to zero rating as opposed to tax exempt and all direct agricultural inputs like seed that are under standard tax rate of 16 per cent be also put under zero rating," he said.
Kagwe made the remarks Tuesday when he appeared before the National Assembly Committee on Agriculture to discuss the budget estimates for the 2025-26 financial year.
