KEY POINTS
- Kephis postponed the implementation of the increased inspection fees to March 2025, citing the need for further stakeholder consultations and policy refinements.
- Traders criticized the proposed levies, warning of inflated freight costs and reduced competitiveness in Kenya’s trade environment compared to regional peers like Tanzania.
- Business groups advocate for transparent consultations, urging government agencies to prioritize public financing over self-funding mechanisms that burden importers and exporters.
Kenya’s Plant Health Inspectorate Service (Kephis) has suspended new levies on physical tests, examinations and inspections for imports and exports.
Kephis deferred their implementation to March 2025 following widespread opposition from traders.
Kephis delays charges until march 2025
The decision, announced Tuesday by Kephis Managing Director Prof. Theophilus Mutui, marks the second delay in the rollout of the controversial charges initially planned for July 2024.
“We had to suspend the fees to allow further consultations with stakeholders,” Mutui stated after a meeting with industry representatives. “This additional time will enable us to incorporate their suggestions before piloting the revised regulations from March 1, 2025.”
Stakeholders push back against costs
The new levies, which were set to take effect on December 1, would have significantly increased freight costs.
For example, fees for inspecting and acquiring a phytosanitary certificate for a 40-foot container were slated to rise from $11.80 to $90.50, making Kenya’s trade routes among the most expensive in East Africa.
Nassib Mubarak, a representative of the Cereal Millers Association, expressed concerns over the proposed charges, stating they would inflate business costs and reduce port efficiency.
“While we support Kephis in safeguarding the country against pests and diseases, adding cleaning and inspection fees creates unnecessary burdens,” he said.
The Shippers Council of Eastern Africa echoed these sentiments. CEO Agayo Ogambi criticized the government’s push for agencies to self-fund through charges, urging instead for increased public financing for critical services.
“Introducing such fees sets a dangerous precedent for other agencies at the port to follow suit,” Ogambi warned.
Regional cost disparities highlighted
Traders also pointed to Kenya’s rising costs relative to regional peers. Tanzania, for instance, charges just $17 for a similar phytosanitary certificate and inspection fee for exports.
Comparatively, the planned fees would make Kenya one of the priciest options for trade, potentially undermining its competitiveness.
Path to revised implementation
The suspension allows Kephis to re-engage stakeholders and refine the fee structure. Prof. Mutui noted that the changes aim to balance operational sustainability with affordability and efficiency for businesses.
The decision has been met with cautious optimism from the business community, with many emphasizing the importance of transparent and inclusive consultations in shaping policies that impact trade.
