NAIROBI, Kenya – Kenya Forest Service (KFS) has introduced substantial increases in timber movement permit fees, leading to an expected spike in timber prices.
This move, effective from July 13, has raised concerns among industry stakeholders about the rising costs of furniture and construction materials, potentially straining consumers’ budgets.
Under the new regulations, the fee for a permit to transport timber across borders has skyrocketed to Sh25,570, up from Sh2,000.
This fee breakdown includes a Sh20,000 consignment charge, a 16% VAT, a Sh2,000 movement permit fee, and an eCitizen platform fee of Sh50 per transaction.
Charcoal transport permits have also seen an increase, with charges set at Sh30 per bag plus VAT and transaction fees.
The new permit is valid for three days and requires detailed documentation, including consignment details, vehicle registration numbers, transportation dates, and the origin and destination of the goods.
However, the permit does not apply to small quantities intended for domestic use, such as a head-load of firewood or fewer than three bags of charcoal.
The timber industry, which is crucial for Kenya’s economy, is already feeling the impact of these changes.
A spot check revealed that timber prices had been on the rise even before the new fees were implemented, with further increases now anticipated.
For instance, the price of mahogany beams has risen from Sh280 to Sh300 per foot at timber yards, while smaller dealers are selling the same for up to Sh320 per foot.
Prices for other timber types, such as pine and cypress, have also seen significant hikes.
The increased costs are expected to ripple through the supply chain, affecting not only timber sellers but also carpenters, furniture makers, and consumers.
“Timber prices have been unpredictable of late, with costs rising by Sh10 to Sh20 each time we purchase. We have no choice but to pass these costs on to our customers,” said Cyprian Kimanthi, a furniture designer in Nairobi.
The KFS’s decision comes as Kenya faces a timber deficit, with demand for wood products far outstripping supply.
The country imports a significant portion of its timber, primarily from Tanzania, Uganda, and the Democratic Republic of Congo. In 2023, Kenya’s timber imports from these countries totaled over 17,000 shipments.
This latest development has prompted calls for better communication and timing in implementing price changes.
