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UK Reduces Inspection Tariff on Kenyan Horticultural Exports, Boosting Competitiveness

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UK Reduces Inspection Tariff on Kenyan Horticultural Exports, Boosting Competitiveness

by Tatyana Ivanovich
September 6, 2024
in AGROTECHNOLOGY
0
UK Reduces Inspection Tariff on Kenyan Horticultural Exports, Boosting Competitiveness

Kenyan Agricultural Sector Celebrates as Inspection Tariff on Exports to the UK is Cut by Half

Kenyan horticultural exports to the UK are set to become more competitive following a significant reduction in inspection tariffs. The UK has agreed to slash the inspection tariff for Kenyan horticultural products from 10% to 5%, a move expected to enhance the cost efficiency of exporting produce such as peas, beans, and other vegetables to the British market.

The announcement was made by Kenya’s Cabinet Secretary for Investments, Trade, and Industry, Salim Mvurya, following a meeting with British High Commissioner to Kenya, Neil Wigan, in Nairobi. Mvurya explained that the reduction in tariffs will ease the financial burden on Kenyan exporters, making their products more attractive in the UK market. Previously, exporters were required to subject 10% of their shipments to inspection, a costly process that has now been cut in half to 5%.

Mvurya further detailed that for every kilogram of produce exported, 100 grams had to be tested, which contributed to increased costs for exporters. The new agreement will allow Kenyan exporters to reduce these costs, boosting their margins and enhancing the competitiveness of Kenyan produce in the UK.

The reduction in inspection rates is a major victory for Kenya’s agricultural sector, which sends tonnes of fresh vegetables to the UK every day. Vegetables, including peas, beans, and other leguminous crops, make up a significant portion of these exports.

The UK government has also made strides in supporting Kenyan exports by removing tariffs on Kenyan flowers, which are now exported to the UK tariff-free. This measure, which is in place until June 30, 2026, is expected to stimulate even more trade between Kenya and the UK, strengthening the economic ties between the two nations.

British High Commissioner Neil Wigan noted that the tariff-free arrangement on flowers is already making a positive impact on Kenyan exporters. He also expressed optimism about future trade relations, indicating that discussions are ongoing to determine what will follow after the two-year tariff suspension period.

The combined efforts of reduced inspection tariffs on vegetables and the removal of tariffs on flowers demonstrate the strengthening economic relationship between the UK and Kenya. These developments are expected to provide significant benefits for Kenyan farmers, traders, and exporters, while also increasing the availability of high-quality Kenyan produce in the UK market.

Tags: Agricultural ExportsKenyan flowersKenyan horticultureKenyan peas and beansKenyan vegetablesTrade RelationsUK inspection tariffUK-Kenya tradevegetable exports
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