NAIROBI, Kenya — It’s official: Kenya’s government just gave Export Processing Zones (EPZ) and Special Economic Zones (SEZ) a golden ticket.
Enterprises operating within these zones will no longer pay import levies on nuts, oil crops, and related products sourced from East African Community (EAC) states.
The announcement, made Thursday by Agriculture Cabinet Secretary Mutahi Kagwe through Legal Notice No. 26, amends the Crops (Nuts and Oil Crops) Regulations 2020.
This isn’t just a policy tweak—it’s a strategic move. The nuts and oil crops industry contributes 1.2pc to Kenya’s GDP and about 4.5pc to the agricultural GDP, according to the Kenya Economic Survey 2021.
Yet, despite its promise, local production has consistently lagged behind demand.
“Kenya still relies heavily on imported edible oil,” said Dr. Bruno Linyiru, Director General of the Agriculture and Food Authority (AFA). In fact, in 2021 alone, Kenya imported edible oil worth Sh115 billion. That’s a lot of cooking oil.
The AFA hopes this new exemption will free up capital, improve access to raw materials, and ultimately stimulate local manufacturing, job creation, and foreign exchange earnings.
It’s part of a larger push toward self-sufficiency and import substitution—think more sunflower, canola, coconut, and soybeans grown at home.
Implementation? AFA Has That Covered
The AFA, which regulates and promotes this sector under the Crops Act 2013, will provide a detailed implementation roadmap via the KenTrade Trade Facilitation Platform ahead of the effective date.
The directive covers 13 nuts and oil crops, including cashew, coconut, sunflower, macadamia, and lesser-known players like Bambara nuts and safflower.
The idea is simple: reduce bottlenecks, increase competitiveness, and turn Kenya into a processing and export powerhouse in the EAC region.
“This will allow us to align incentives with potential,” said Linyiru. “We urge all stakeholders to take note of these changes.”
With food security and economic resilience topping national priorities, the move isn’t just about trade. It’s about building up Kenya’s edible oil supply chain, reducing overdependence on imports, and plugging production gaps with smart incentives.
