Kenya seeks revocation of VAT on seeds

The Seed Trade Association of Kenya recently said the 16 percent VAT charge on seeds is affecting the purchase of new seeds as farmners have resorted to recycling or buying low quality seeds.
The association's chief executive Evans Sikinya said the cost of various seeds has sharply gone up it unaffordable for most farmers.

 "The cost of seed is now over 50 percent high which is unaffordable for the farmers, hence resulting to the uptake of low quality seeds," he said during a press briefing on the forthcoming STAK expo schedule for next week in Nairobi.

According to STAK, legumes are still zero rated but horticultural seeds and cereals now attract a 16 per cent levy. Sikinya said they are lobbying the government to slash VAT on all seed varieties.

He said to make agriculture attractive to the youth as a commercial venture, there is need to reduce the cost of capital investment, investment in new technology, and introducing crops 'which don't look dirty'.

 STAK said it has created a congress comprising of the central government and county governments to look at ways of enhancing overlooking and enhancing agricultural productivity.

 "At congress, we will be sitting with seed companies, counties' agricultural directors and the Ministry of Agriculture to address the problems facing farming in order to make agricultural investments attractive to youth," said Sikinya.

 He said that the crops like mushrooms and agro forestry present good business potential to the youth as they are more appealing and have a ready market both locally and abroad.