BY KEPHER OTIENO

The Lake Victoria Aquaculture (LVA) Association is calling for a stakeholder forum to address critical issues regarding the Fisheries Management and Development (Aquaculture) Regulations, 2024, which are set to take effect on January 1, 2025.

The regulations have faced significant opposition from various stakeholders in the aquaculture sector.

In a terse protest statement sent to Fisheries and Blue economy CS Hassan Joho, LVA Board Chairman Mr. Ochieng’ Mbeo emphasized the need for constructive dialogue with the Fisheries Ministry.

“Our intention has never been to engage in a legal tussle with the government,” Mbeo stated.

He asserted: “However, with the regulations creating an unsustainable burden on local producers, we had no choice but to seek judicial intervention to protect the livelihoods of thousands of Kenyans.”

On December 27, 2024, the High Court granted a conservatory order suspending the implementation of the regulations, paving the way for discussions between stakeholders and government officials.

Mbeo criticized the current regulations, which impose punitive licensing fees and an ad valorem levy.

“These measures risk stifling the growth of Kenya’s aquaculture sector, undermining food security and economic development goals,” LVA chair said.

The Permanent Secretary in the State Department for Fisheries, Aquaculture, and the Blue Economy acknowledged the concerns raised by stakeholders.

“We are committed to fostering an environment where aquaculture can thrive,” the PS noted.

The PS said “It is essential that we work together to ensure that our regulations promote sustainable growth rather than hinder it.”

The LVA Association, along with other stakeholders, is urging the Ministry to initiate a comprehensive review of the regulations and the Fisheries Management and Development Act.

Mbeo believes that a collaborative approach is necessary.

“By bringing together representatives from government, industry, and civil society, we can develop a framework that supports sustainable growth and enhances industry competitiveness.” Mbeo said.

The call for a stakeholder forum underscores the urgency of addressing these regulatory challenges to safeguard the future of Kenya’s aquaculture sector.

The fishermen are unhappy against the Government recent decision to impose significant and unsustainable taxes on all permits under the revised Fisheries Management and Development Act has raised considerable concern among industry stakeholders.

This move, 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 vital not just for food security, but for job creation and business development. Placing exorbitant taxes on permits, the government is threatening to undermine its own efforts to boost the blue economy, a key pillar of Kenya’s national development agenda.” Said Pete Ondeng LVA Board executive secretary.

He said the fisheries sector is integral to the blue economy, which emphasizes sustainable use of ocean resources for economic growth, improved livelihoods, and jobs, while also ensuring environmental sustainability.

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

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 these 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,” said Ondeng.

The LVA also emphasized the importance of rethinking the current tax policy.

“If the government is serious about promoting sustainable economic growth and fostering a robust blue economy, it must reconsider these tax measures,” said Mbeo.

The taxes need to strike a balance—ensuring effective regulation without stifling growth and innovation within the sector, the official stated.

Given these concerns, players in the fisheries industry are taking proactive steps.

Meetings are scheduled to take place between stakeholders in Kenya to discuss the way forward, with the Lake Victoria Association facilitating dialogue and coordination.

Additionally, there are ongoing discussions in Tanzania, where industry leaders, including those from the Tanzania Investment Center (TIC) and senior government officials in Aquaculture, are collaborating to explore production opportunities, signaling a potential shift in production outside of Kenya due to the unfavorable tax environment.

The LVA Association officials said they and other stakeholders firmly believe that regulations and legislation should aim to develop, not destroy, the industries they govern.

Unfortunately, the current regulations introduce punitive licensing fees and an ad valorem levy that place an unsustainable burden on local producers.

These measures, combined with the gaps and inconsistencies in the Fisheries Management and Development Act, risk stifling the growth of Kenya’s aquaculture sector, undermining food security and economic development goals.

Mbeo said: “We respectfully propose that your Ministry take advantage of this moment to initiate a comprehensive review of both the regulations and the Act.”

They want dialogue now with Joho team.

“We want to bring together representatives from government, industry, and civil society, so that we can collaboratively develop a framework that supports sustainable growth, enhances industry competitiveness, and aligns with the principles of fairness and equity ” said Mbeo.