Kenya: Potato Imports by QSRs to Face 30% Duty

Fast food franchises operating in Kenya have been slapped with a 30% duty on imports of potatoes used to make French fries, a move that will significantly raise the cost of the end product. Major QSRs rely on imports from as far as Egypt and South Africa for the potatoes they use as most that are grown locally do not meet required standards.

Last week, Treasury Cabinet secretary Ukur Yatani introduced the duty that will apply to crop coming outside the East African Community, arguing that it’s meant to safeguard local farmers. The need to produce the required variety of potato for chips in Kenya has been growing with private entities joining the enterprise.

Kenya has been relying on imports of certified tubers to meet the growing demand for clean seeds for potato farmers with the aim of boosting production of the country’s second most popular staple food.

The country’s potato seed demand stands at 30,000 tons annually but the country only produces 6,700 tons with most farmers recycling previous crop to use as seed, a move that has been blamed for the shortage that the country faces. At the same time Kenya currently produces about two million tons of potatoes annually even though the country has potential of yielding up to eight million tons.