The government has pledged to ensure Kenyan farmers earn incomes commensurate with their labour, amid growing concerns over high taxes, levies, and regulatory bottlenecks.
During a high-level breakfast meeting, Agriculture CS Mutahi Kagwe convened sector representatives alongside Treasury PS Dr. Chris Kiptoo, Agriculture PS Dr. Paul Ronoh, Livestock PS Jonathan Mueke, and KRA Commissioner for Micro and Small Taxpayers George Obell. The session focused on improving farmer earnings, reviewing compliance burdens, and safeguarding Kenya’s competitiveness across key agricultural value chains.
Opening the dialogue, CS Kagwe emphasised the need for actionable reforms that balance sector growth with government revenue. “If a regulator charges a levy, there must be a corresponding service. If no service is provided, the charge makes no sense,” he said.
PS Ronoh highlighted rising costs in fertiliser blending, seedling supply, and extension services, pledging improved efficiency across value chains. PS Mueke raised concerns over livestock exit fees, port charges, and duplicative county permits that undermine competitiveness.
Sector representatives flagged unpredictable VAT changes, rising levies, and high costs of packaging materials, which have pushed some farmers and traders into informal channels, affecting food safety and market stability.
Treasury PS Dr. Kiptoo acknowledged Kenya’s tight fiscal space, noting that nearly half of national revenue services debt, limiting room for additional tax waivers. However, he reassured stakeholders that the government will coordinate a review of all regulatory levies and explore restructuring to reduce undue burdens.
KRA Commissioner Obell confirmed that farmers earning below the taxable threshold should not pay income tax and promised sector-specific adjustments to improve compliance without pushing producers into informality.
CS Kagwe concluded by stressing that agriculture remains the backbone of Kenya’s economy and called for structured follow-up engagements to ensure discussions translate into practical, measurable improvements in farmer incomes and sector growth.
