Food Crop Regulations 2019: What You Need to Know

Kenya enacted the Crops Act in 2013. This is the law that provides for the growth and development of agricultural crops in Kenya. To be able to operationalize this piece of legislation, supporting subsidiary legislation is required. Enter the Crops (Food Crops) Regulations 2019.

The Cabinet Secretary and the Agricultural and Food Authority (AFA), the government body with the mandate to enforce the Crops Act 2013, are currently drafting the food crop regulations in view of addressing various challenges in the agricultural sector. These challenges include lack of regulation of value chain players, exploitation of farmers by middlemen, lack of data on the food balance sheet, food safety challenges from farm to fork, pollution of the environment from agricultural activities, and so on.

The drafts were taken to the public for consultation in March 2019. However, going by the public reaction, it seems that there are a lot of issues that need looking into before these regulations are passed as law.

Issues of Concern

It would appear this regulation fails in its efforts to "promote growth and develop food crops." Some of the key concerns include the following:

1. Impediments to Free Movement of Food Commodities

Several provisions in the regulations may impede freedom of movement of foods within the country and between Kenya and its trading partners. The regulations introduce certificates of produce for consignments of 5 tonnes and more. This means, for example, a farmer with 200 tonnes of grains will require on average 13 certificates to be able to move his grain to a buyer, if he uses 16-tonne trucks.

This introduces time-consuming bureaucratic processes which will ultimately be costly and a headache to farmers, dealers and food processors moving foods from farms. In addition to this, AFA will be required to give import and export permits, a function that overlaps with roles other state agencies already perform.

2. More Fees and Levies

The regulations also introduce significant new costs across the value chain. Farmers, traders, warehouse operators and food processors will need to be registered and licensed at a cost, in addition to the single business permits they already pay to county governments.

Importers and exporters will also have to pay a levy, which will be a percentage of the customs value of the goods. This is on top of the import duties and taxes already existing. Economic logic favours producing a surplus and exporting to earn foreign exchange. Currently, Kenya is a net importer and the balance of trade is heavily skewed. It is unclear how these additional levies will strengthen the agricultural industry.

“I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.”

— Winston S. Churchill

Sources

• The Crops Act, 2013 (No. 16 of 2013) — Kenya Law
• The Crops (Food Crops) Regulations, 2019 (L.N. No. 217 of 2019) — Kenya Law
• Agriculture and Food Authority: Food Crops Directorate