February 5, 2025

 

Kenya puts aquaculture licensing regulations on hold to permit more consultation with fishing industry

 

Kenya has temporarily shelved contentious aquaculture licensing regulations to allow for more consultation between the government and fishing industry stakeholders.

 

Kenya Mining, Blue Economy, and Maritime Affairs Cabinet Secretary Hassan Joho has picked a 12-member committee to review the regulations, which were initially expected to come into force in January.

 

Before the decision to review the regulations was made, the High Court of Kenya had already put the new rules on hold after a leading aquaculture association in the country challenged their legality.

 

That court case, which was scheduled for 10 February, is now deferred until the consultations conclude.

 

The regulations in question sought to introduce a KSh50,000 (US$384) operational licensing fee for those seeking to start commercial aquaculture enterprises and a landing tax fixed at 5% of the value of all landed fish.

 

These stipulations were challenged by the Lake Victoria Aquaculture Association (LVAA), an organisation comprising private and public stakeholders to promote sustainable aquaculture industry in the Lake Victoria region, on grounds the rules are likely to stagnate Kenya's aquaculture industry and trigger an increase in fish prices, especially in the domestic market, due to the anticipated higher cost of production.

 

The fees and landing tax, introduced to create an additional revenue stream for the government, would apply to all aquaculture investors irrespective of the size of their business. LVAA, therefore, feared the higher cost of fees would stymie domestic business and create an opportunity for cheaper fish imports to enter the country, especially frozen tilapia from China.

 

"This tax will directly impact the most vulnerable population and bring a radical reorganisation of aquaculture businesses with possible relocations and reduction in existing jobs and those that would have been created," Caesar Asiyo, the chair of the recently created African Aquaculture Business Leaders Network (AABLN), said during a webinar of aquaculture stakeholders organised by LVAA in December 2024.

 

"Those who would remain would shift focus to automation, accompanied by price increases and reduced investments," he said.

 

Furthermore, LVAA accused Joho of pushing through the new regulations without conducting public participation as required by the Kenyan constitution on all proposed regulations.

 

"Let's push for fair, sustainable policies that safeguard livelihoods and promote food security," LVAA said.

 

-SeafoodSource