Table of Contents

1. Boosting Farm Productivity through Tax Incentives

Industry leaders have proposed the zero-rating of VAT on agricultural implements in Kenya, a move aimed at reducing the acquisition costs of farming machinery and promoting mechanization.

This initiative is expected to enhance agricultural productivity and contribute significantly to national food security. The call was made during the launch of Mahindra Tractors in Kenya, against the backdrop of Kenya’s low mechanization rate, which stands at a mere 0.2% compared to the global average.

What does this mean? Eliminating VAT on agricultural machinery could be a watershed moment for Kenyan agriculture, potentially revolutionizing the sector by making mechanization accessible to more farmers.

This policy could lead to increased crop yields, improved food security, and substantial economic benefits through job creation and enhanced efficiency in crop value chains. It underscores the critical role of government policy in shaping the agricultural landscape and the importance of strategic investments in infrastructure and technology to sustain growth.

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2. Transforming Arid Lands into Agricultural Goldmines

Tukalime Ventures is making strides in converting arid, underutilized lands into profitable agricultural enterprises, focusing on biofuel crops like castor. Founded by Kevin Kamau, the venture seeks to address the declining interest in agriculture among Kenya’s youth and the challenges of an aging farming population.

With an initial investment of Sh1 million, Tukalime has grown to manage nearly 4,000 acres, aiming to expand further into various crops and extend its operations across East Africa.

What next? Tukalime’s innovative approach highlights the untapped potential of arid lands in Kenya and the broader region. By demonstrating the viability of commercial agriculture in these areas, the venture not only promotes food security and economic diversification but also encourages the younger generation to engage in agriculture.

This model could inspire similar initiatives, driving sustainable agricultural development and environmental conservation.

3. Advocating for Policy Reforms in the Macadamia Sector

Macadamia traders are lobbying for the repeal of Section 43 of the AFA Act, which restricts the export of raw nuts, following a temporary lift that saw prices soar and opened up international markets.

The Nut Traders Association highlights the sector’s revival and the increased demand in Asian countries as evidence of the policy’s detrimental effects on market access and farmer incomes.

So, what happens next? The debate over the export ban on raw macadamia nuts underscores the delicate balance between protecting domestic industries and harnessing global market opportunities.

Revising this policy could unlock significant economic benefits for farmers and traders, but it also calls for complementary measures to ensure sustainable practices, quality control, and the fair treatment of producers. This situation reflects broader challenges in agricultural policy-making, where innovation, market access, and regulation must align to foster sectoral growth and resilience.