The governments of Kenya, Tanzania, Uganda and Rwanda gradually have removed taxation on both feed and raw materials used in their production to increase access to meat, milk and eggs and also boost the feed production industry in East Africa. Representatives of the sector define the decision as a ‘win’ for the sector.

According to a report at World-Grain, governments in East Africa recently have made animal feed costs cheaper by removing a tax on the raw materials used in their production, although livestock farmers in the region are grappling with frequent droughts that impact the supply of commodities such as corn, sunflower and soybeans. Since 2015, the governments of Kenya, Tanzania, Uganda and Rwanda gradually have removed taxation on both feed and raw materials used in their production to increase access to meat, milk and eggs and also boost the feed production industry in East Africa. In addition, the removal of taxes on raw material for the manufacture of animal feeds has encouraged private investment in the East African feed industry, thus increasing the variety of feeds available and competition that could result in high quality products. The Kenya Association of Manufacturers (KAM), a leading representative organization for industry that brings together industrialists and provides a platform for the country’s manufacturing sector, said exempting all raw material for manufacturing of feeds from VAT is “an exciting win for the livestock industry.” KAM said the removal of VAT will “strengthen the government’s commitment of transforming the agricultural sector by encouraging local manufacturers to produce high quality feeds at low cost, thereby making the business profitable.”