Lobby files petition against licence fees for aquaculture

Lake Victoria Aquaculture (LVA) Association has filed an urgent petition expressing serious concerns over the proposed Fisheries Management and Development (Aquaculture) Regulations, 2024.

In a terse press statement from the board chair Ochieng Mbeo and secretary Pete Ondeng, the association criticised the introduction of a Sh50,000 application fee and a 5 per cent valorem charge on fish landed, arguing that these measures threaten the growth of a vital industry.

Mbeo emphasised that local producers are already grappling with high input costs, limited access to financing, and narrow profit margins.  “The proposed licensing fees are unsustainable and could force many out of business,” he stated, highlighting that the financial strain would disproportionately impact small and medium enterprises.

The association has written a protest letter to Cabinet Secretary for Mining, Blue Economy and Maritime Affairs Hassan Joho asking him to rescind the decision and call for a stakeholders-discussion on the new way forward.

The petition raises concerns that these fees contradict the government’s objectives of promoting domestic production and reducing reliance on imported fish. Mbeo said by imposing such costs, the regulations risk undermining food security initiatives and could inadvertently encourage greater dependence on imported fish.

The association warned that excessive costs discourage investment and innovation, particularly in rural areas where aquaculture presents critical economic opportunities.

“The combination of cheaper imported fish and high regulatory costs creates an uneven playing field, jeopardising the viability of local enterprises,” Mbeo cautioned. In light of these challenges, the association has proposed several alternatives to the current fees. They suggest introduction of fee waivers or subsidies to alleviate financial pressures on local producers.

Additionally, they advocate for performance-based incentives that reward enterprises meeting sustainability targets and contributing to food security.

The association also emphasises the need for support for women, youth, and community-focused aquaculture projects, proposing fee reductions to promote equitable development.

Production capacity

They also recommend scaling fees based on production capacity to ensure fairness across different enterprise sizes.

But they rejected the new taxes move, saying while intended to regulate and control the sector, is expected to have far-reaching negative consequences.

The new tax structure is seen as punitive, potentially crippling the growth of the fisheries sector, discouraging both current and future investments, and undermining efforts to build a sustainable blue economy.

The fisheries sector is integral to the blue economy, Mbeo said, calling on the fisheries ministry to review and quash the new fish taxes. While Odeng emphasised sustainable use of ocean resources for economic growth, to improve livelihoods and jobs, and also in ensuring environmental sustainability, he said taxes should not kill this morale.

“Fisheries contribute significantly to Kenya’s national economy, with millions of people directly or indirectly relying on it for their livelihoods,” he told the press.

The sector supports thousands of small and medium-sized businesses and provides numerous jobs, from local fishermen to those working in fish processing, distribution, and export.

However, the imposition of punitive taxes will likely lead to an increase in the cost of local production, making it less competitive compared to imported products.  As a result, it may discourage local production, stimulate imports, and ultimately reduce the sector’s contribution to the national economy.

“This shift could severely impact food and nutrition security, as local production would be insufficient to meet domestic demand, and it could lead to widespread job losses within the industry,” Mbeo asserted.