The levying of Agriculture Produce Cess (APC) is one of the most significant barriers to trade for agricultural producers across the country.
A study conducted by CGA in 2017 and by the Kenya Market Trust in 2016 revealed that multiple and high agricultural cess rates were being charged arbitrarily and with no justification for the rates applied across different counties.
CGA with the support of Business Advocacy Fund (BAF) has planned a lobbying process for the total abolition of APC. This is expected to contribute to making Kenyan agriculture more competitive and sustainable.
As part of the process, CGA this morning engaged stakeholders from different Business Member Organisations (BMOs) to deliberate how APC affected them and to agree on a joint way forward.
Some of those represented in the meeting include Cereal Millers Association, Kenya Tea Growers Association, Kenya Association of Manufacturers, Dairy Traders Association, Kenya Flower Council, Seed Trade Association of Kenya, National Potato Council of Kenya, East African Grain Council among others.
Agriculture and Food Authority was also represented.
Representatives present all agreed that the policy on APC was not clear and the negative effects of APC on agriculture cut across different value chains across the agriculture sector.
The many court cases that different organizations had won against cess was noted as a major indicator for the lack of a proper legal framework permitting the levying of APC.
The stakeholders agreed to work together as a unit to challenge APC levying by county governments as the effects of APC on agriculture are glaring.
Armed with the support of these industry stakeholders, CGA endeavors to continue leading the joint industry efforts for the abolishment of APC.