ASNET holds a crisis meeting with the Government on the escalating food and fertilizer prices

ASNET held a crisis meeting with PS Harry Kimtai and Senior government officials at Kilimo House over the escalating food and fertilizer prices. On Food, the parties looked at the global situation and how it is impacting on the Kenyan situation. Kenya consumes 2.4MT of wheat annually against a local production of 250K tonnes annually and further imports 1MT of maize. 60-70% imported wheat is sourced from Russia and Ukraine. In order to control food price inflation, the following recommendations were made to the government;
1. Scrap 10% import duty
2. Scrap or reduce levies
3. Allow alternate origin-India
4. GMO
The PS committed to pushing for recommendations immediately.
Moreover, ASNET participated in a roundtable dialogue on the current high and still escalating prices of Fertilizers. In order to cushion the farmers and avert a possible food crisis it was recommended that;
1. Both IDF and RDL levies should be reduced to a low 1.5%
2. Zero-rating fertilizers. Fertilizers are VAT exempt. Zero-rating shall allow the importers’ claim of associated inputs VAT and consequently the selling price shall drop.
PS Harry Kimtai and his team agreed to escalate the recommendations upwards.