The Kenyan government is considering amendments to recently implemented financial laws to prevent double taxation on avocados in response to mounting pressure from farmers concerned about the impact of the new duty.

Currently, Kenyan avocados face a 30 percent duty when accessing the Indian market, this, coupled with the domestic tax, threatens to render Kenyan produce uncompetitive in the global market.

Deputy President Rigathi Gachagua announced the government’s intention to extend tax relief to avocado farmers through amendments to Section 23 of the Finance Act of 2023 that requires farmers to file through Electronic Tax Invoice Management Systems (e-TIMS).

Mr Gachagua pointed out that the current finance bill unfairly disadvantages farmers, highlighting the need for a meeting between avocado stakeholders and the National Treasury to establish parameters for extending a tax moratorium to farmers.

Speaking at his Official Residence in Karen, Nairobi, Mr Gachagua underscored the significant economic potential within the avocado value chain.

The DP called for friendly interventions to streamline the industry, ensuring that farmers can fully benefit from their efforts.

Mr Gachagua reiterated the government’s commitment to addressing farmers’ concerns in consultation with key stakeholders, aiming to maximise their earnings from avocado farming.

Following the meeting, it was decided that an intergovernmental consultation would convene within the week to establish parameters to address challenges faced by avocado farmers, including tax issues.

Additionally, a committee will be formed to develop policies aimed at regulating the avocado value chain, which generated 19 billion shillings in 2023.

The government said it is in discussion with India to exempt Kenyan avocados from a 30 percent import levy.

Furthermore, negotiations are underway with other potential markets such as the United Arab Emirates. Kenya’s efforts come as it solidifies its position as the 6th largest last year.