91-day T-bill8.750%▲ 0.002
182-day T-bill8.851%▼ 0.008
364-day T-bill9.029%▲ 0.002
Central Bank Rate8.75%07/10/2026
Inflation7.3%October 2026
Top MMF yield10.50%Madison
Sources: CBK auction, 2 Nov 2026 value date (change vs 26 Oct); CBK key rates; fund managers' published yields, as at 15 Nov 2026.

Horticulture export levy: AFA proposes new 0.25% charge

Horticulture export levy of 0.25% proposed in draft AFA rules, with 2% to 4% on imports and new licence fees. See what exporters would pay.

Horticulture export levy: farmers harvesting French beans on a Kenyan farm
Farmers harvesting French beans, one of Kenya’s main horticultural exports. Photo: Blessed +254 / Wikimedia Commons, CC BY-SA 4.0

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A new horticulture export levy of 0.25% of customs value would apply to all fruit, vegetable, flower and avocado oil exports from Kenya under draft regulations published by the Agriculture and Food Authority (AFA). Imports of horticultural produce would also pay a levy of 2% to 4% of their value.

The charges are in the draft Crops (Horticultural Crops) (Amendment) Regulations, 2026, which Agriculture Cabinet Secretary Mutahi Kagwe has put out for public comment. The levies would be paid to AFA and used “for the operations of the Authority and development of the industry”.

How the horticulture export levy would work

Regulation 34 of the draft sets three rates:

Item Proposed levy On a KSh 1 million consignment
Horticultural produce and avocado crude oil for export 0.25% of customs value KSh 2,500
Imported horticultural products (processed) 4% of import value KSh 40,000
Imported fresh produce or raw materials 2% of import value KSh 20,000

Late payment of the horticulture export levy would be costly. Where AFA directs in writing, a business that fails to remit on time would pay 25% interest for the first month or part of a month, then 12% compound interest for each later month. Unpaid levies would be recovered as a civil debt.

Horticulture export levy clause in the draft Crops (Horticultural Crops) (Amendment) Regulations
Regulation 34 of the draft regulations, which sets the export and import levies. Image: Agriculture and Food Authority

New licence fees for exporters and pack houses

On top of the horticulture export levy, the Fourth Schedule lists annual fees: KSh 10,000 for an export licence, KSh 10,000 for an importer licence, KSh 10,000 for a horticultural produce processing licence, KSh 5,000 each for dealer and pack house registration, and KSh 5,000 to register a nursery or mother block for the export market. Inspections for produce conformity cost KSh 1,000 each.

Exporting without an export certificate would carry a fine of up to KSh 300,000, a year in jail, or both. Processing without a licence would attract a fine of up to KSh 500,000.

Traceability, pricing and 'Produce of Kenya' rules

Beyond the horticulture export levy, dealers would have to adopt the National Horticulture Traceability System or an AFA-approved equivalent, declare where their produce comes from, and set up a recall system for produce that poses food safety risks. Grower contracts would be deposited with AFA.

The draft creates an industry pricing committee chaired by a Ministry of Agriculture appointee, with two grower representatives and members for exporters, processors, marketing agents, the State Department of Trade, the Council of Governors and AFA. It would recommend a pricing formula to the Cabinet Secretary. Export packaging would carry the “Produce of Kenya” brand, and produce handlers would need a medical test every six months.

The rules would also revoke the Horticultural Crops Development Authority Order, 2011.

Horticulture export levy notice by the Agriculture and Food Authority inviting public comments
The AFA public notice inviting comments and listing the December county forums. Image: Agriculture and Food Authority

How to comment on the draft

AFA asked anyone likely to be affected by the horticulture export levy or the other rules to send written memoranda within 14 days of publication to the Director General at Tea House, Naivasha Road, Nairobi, or by email. The notice was posted by AFA on 10 November 2026. In-person forums will run from 9am to 1pm on 7 December (Mombasa and Isiolo), 9 December (Nakuru and Nyeri) and 11 December (Eldoret and Kisumu).

The proposal comes as exporters already follow strict market rules; see our guides on avocado exports from Kenya and the certificate of origin. A separate export levy on tea was halted by a court, as covered in our report on the 0.8% tea levy suspension.

Frequently asked questions

What is the proposed horticulture export levy?

It is a 0.25% charge on the customs value of all horticultural produce and avocado crude oil exported from Kenya, proposed in the draft Crops (Horticultural Crops) (Amendment) Regulations, 2026.

How much would importers pay?

Imported processed horticultural products would pay 4% of import value, and fresh produce or raw materials 2%.

Who collects the levy?

The levy would be remitted to the Agriculture and Food Authority and used for its operations and industry development.

Is the horticulture levy already in force?

No. The regulations are a draft open for public comment, with county forums planned for 7, 9 and 11 December 2026.

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About Author

Norah Waceke is a business journalist and editor at Business Radar with more than eight years of experience covering Kenya's economy, companies and markets. She previously worked at one of Kenya's leading digital news platforms, where she reported on business, finance and current affairs. A graduate of Multimedia University of Kenya, Norah focuses on clear, accurate reporting that helps readers understand the money stories shaping their lives and businesses.

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