PHOTO | Courtesy

Kenya is seeking to zero rate VAT on vegetable seeds to reduce the cost of production.

Livestock Principal Secretary Harry Kimtai says talks are at an advanced stage with the National Treasury to waive tax on vegetable seeds.

Kenya imports vegetable worth about 4 billion shillings mainly from neighboring countries.

Value chain players say vegetables from Uganda and Tanzania are cheaper due to the lower cost of production as seeds in those countries are zero rated.

The government now plans to zero rate VAT on vegetable seeds to reduce imports and make Kenya's produce competitive.

Some farmers have resorted to buying seeds from neighboring countries further fueling counterfeit seeds that affect yields.

Idle land belonging to government institutions is also being mapped out to help in seed multiplication with both multinational and regional seed companies showing interest in the venture.

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