KENYA – The Kenyan government has put on hold new aquaculture licensing regulations to allow further discussions with industry stakeholders.
Mining, Blue Economy, and Maritime Affairs Cabinet Secretary Hassan Joho has appointed a 12-member committee to review the regulations, which were initially set to take effect in January.
The decision comes after the High Court of Kenya suspended the implementation of the rules following a legal challenge by a major aquaculture association.
A case challenging the regulations was scheduled for 10 February but has now been postponed until discussions between the government and stakeholders are completed.
The proposed regulations included a US$384 licensing fee for commercial aquaculture businesses and a landing tax of 5 percent on the total value of landed fish.
The Lake Victoria Aquaculture Association (LVAA), a group representing both public and private stakeholders, opposed the regulations, arguing that they would slow the growth of Kenya’s aquaculture sector and drive up fish prices due to higher production costs.
The association also warned that the fees and taxes, which would apply to all investors regardless of business size, could weaken local businesses and create an opening for increased imports of frozen tilapia from China.
Caesar Asiyo, chair of the African Aquaculture Business Leaders Network (AABLN), said during a webinar in December 2024 that the tax would significantly affect vulnerable communities and could lead to job losses as some businesses shift towards automation to cut costs.
He added that those who continue operating under the new regulations would likely increase prices and reduce investment in the sector.
LVAA also accused Joho of introducing the regulations without the public consultation required by Kenya’s constitution for new policies and regulations.
In a statement, the association called for policies that support both livelihoods and food security while ensuring fairness in the industry.
In 2023, Kenya’s total fish production was estimated at 161,000 metric tons, a decline from the previous year, with 121,000 metric tons coming from freshwater sources and 40,000 metric tons from marine fisheries.