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Newsunplug Kenya > Blog > Business > The UK cuts in half the inspection tax on Kenyan horticultural produce.
Business

The UK cuts in half the inspection tax on Kenyan horticultural produce.

Ivy Irungu
Last updated: September 4, 2024 12:04 pm
Ivy Irungu 8 months ago
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The UK has agreed to reduce the inspection tariff for horticultural products from Kenya, lowering it from 10% to 5%. Investments, Trade, and Industry Cabinet Secretary Salim Mvurya announced that this reduction is expected to boost the competitiveness of Kenyan produce in the UK market.

“When goods arrive, they undergo inspection, which was previously set at 10% but is now reduced to 5%,” Mvurya explained. He noted that previously, for every kilogram of produce, 100 grams had to be tested, which increased costs for exporters.

Mvurya made this announcement following a meeting with British High Commissioner to Kenya, Neil Wigan, in Nairobi. Also present were Principal Secretaries Alfred K’Ombudo (Trade), Juma Mukhwana (Industry), and Abubakar Hassan (Investment Promotion).

This reduction in inspection rates is a significant win for Kenya’s agricultural sector, which exports large quantities of vegetables to the UK daily, including peas, beans, and other legumes.

Wigan also highlighted that Kenyan flowers are now exported to the UK tariff-free, a move intended to enhance trade and strengthen economic ties between the two countries. The duty suspension will remain in effect until June 30, 2026.

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“The tariff applied to flowers exported from Kenya to Britain but through the EU. There was a 10 per tariff that applied to that. We have brought it down for two two-year period to zero per cent. We are discussing with the CS and team what the future will be after that period. We are already seeing it is making a difference for exporters,” Wigan stated.

 

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