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Kenya to launch livestock export processing zone

Kenya plans to launch a livestock export processing zone by June to boost livestock exports, a government official said on Friday.

Principal Secretary in the Ministry of Agriculture Andrew Tuimur told Xinhua in Nairobi that the government has set aside 1 million U.S. dollars for the Bachuma Livestock Export Processing Zone in the current financial year.

“The zone will boost livestock exports by helping Kenya meet strict health and safety standards of international markets,” Tuimur said on the sidelines of the launch of the Kenya Dairy Board Strategy plan 2017-2022.

Tuimur said that the zone will have a holding area on 15,000 acres where livestock will be quarantined for 60 days to certify them as disease-free before being transported to the port of Mombasa.
Photo credit: Agrodaily

The zone, located in Taita Taveta County in South East Kenya, is less than 150 km from the main port of Mombasa.

In 2017, Kenya only exported 400 heads of cattle to the Middle East, Tuimur said.
“Our aim is to become a major exporter of livestock and livestock products to the lucrative Gulf market,” he said.

Tuimur said that Kenya is grappling with animal diseases such as Foot and Mouth Disease.

“We are therefore going to launch a nationwide vaccination drive in order to ensure the country is declared animal-disease-free,” he added. Enditem

Kenya’s effort in the development of Free Zones is commendable. We reported in this blog this week of the plan to establish a Free Trade Zone of vehicles in Mombasa which is intended for their neighbouring countries, especially the Land locked nations.

In another development, it has been reported that businesses operating in Special Economic hubs will from this year start deducting the investment capital on buildings and machinery from their taxes.

Under the Finance act 2017, Capital expenditure by Special Economic Zones (SEZ) on building and machinery qualify for a 100 percent investment deduction in the year in which the building or machinery is first used for investment outside Nairobi and Mombasa counties, SEZs are entitled to claim investment deductions at 150 person in the first year of use.

The new corporate income tax regime announced by the Treasury Secretary, Henry Rotich in his last budget seeks to encourage investments and create employment opportunities in the manufacturing sector.

President Uhuru Kenyatta has singled out manufacturing as one of the four key sectors that his administration will pay attention to. Others are food security, affordable housing and affordable healthcare.