Government Hikes Timber Movement Permits by Over Ksh20,000
In a significant shift for the timber industry, the Kenya Forest Service (KFS) has announced a steep increase in the cost of acquiring movement permits.
Effective July 13, 2024, the fee for a single transport permit will surge from the previous Ksh2,000 to a hefty Ksh25,570. This move is outlined in a notice dated July 10, 2024, and reflects the government’s intent to regulate the industry more stringently.
The breakdown of the new fees reveals that consignment fees will now be set at Ksh20,000.
Additionally, the Value Added Tax (VAT) imposed on these fees amounts to Ksh3,200, calculated at a 16 percent rate. The movement permit fee itself remains at Ksh2,000 but will also attract a VAT of Ksh320.
Furthermore, transporters will be required to pay a Ksh50 service transaction fee on the E-Citizen platform, which is now the sole method for making these payments.
The KFS emphasized the necessity of these changes, stating that they are crucial for maintaining sustainable forest management practices.
All transactions will henceforth be processed exclusively through the E-Citizen platform, ensuring a streamlined and transparent process.
In addition to the timber transport fees, the new regulations extend to the transportation of charcoal and other non-wood forest products.
Transporters moving bags of charcoal will face a Ksh30 fee per bag, plus the 16 percent VAT. They will also need to pay the Ksh50 eCitizen fee per transaction. For non-wood forest items, the fee is set at Ksh2 plus the 16 percent VAT and the eCitizen transaction fee.
This announcement follows a recent KFS directive prohibiting the grazing of animals in specified areas and the introduction of zoning regulations.
The new guidelines include forest zonation and mapping to designate specific forest areas for grazing, as outlined in the Participatory Management Plans concerning the forest station (PFMP).
The increased fees and stringent regulations underscore the government’s commitment to preserving Kenya’s forest resources.
While these changes are likely to impose a financial burden on businesses and individuals in the timber and charcoal industries, the KFS maintains that these measures are necessary for sustainable environmental management and long-term conservation efforts.
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Government Hikes Timber Movement Permits by Over Ksh20,000
