Nairobi: Mining, Blue Economy and Maritime Affairs Cabinet Secretary (CS) Ali Hassan Joho is facing mounting pressure from aquaculture stakeholders due to the Government’s failure to implement recommendations made by a task force aimed at resolving a dispute over levies imposed on commercial aquaculture operations. The Lake Victoria Aquaculture Association (LVA) has expressed concerns that the Government’s inaction on the agreement reached through the Ministry-Industry Task Force has eroded confidence in its policy-making process, potentially undermining investment in this emerging economic sector.
According to Kenya News Agency, LVA secretary Pete Ondeng, who co-chaired the task force, emphasized that industry representatives participated in months of good-faith consultations after Joho established the team to address the dispute surrounding the Fisheries Management and Development (Aquaculture) Regulations, 2024. The task force eventually reached a consensus and presented a Joint Communiqu© to Joho, outlining the agreed way forward. However, Ondeng noted that the recommendations have not been implemented, despite assurances from the CS. He emphasized that the issue now revolves around the Government’s willingness to honor the outcome of its consultative process.
The regulations introduced a Sh50,000 license fee and a five per cent ad valorem levy on commercial aquaculture operations, sparking opposition from industry players. The recent dismissal of LVA’s petition by the High Court has heightened anxiety in the sector, with stakeholders fearing the decision could lead to the enforcement of the disputed charges. Ondeng clarified that the court ruling did not invalidate the task force’s recommendations, which had reached a consensus on resolving the dispute. He expressed concern that the Government might now enforce the levies, increasing the cost of doing business for aquaculture operators.
Ondeng revealed that LVA had written to Joho seeking an urgent meeting to understand why the Joint Communiqu© had not been implemented and to clarify the Government’s intentions following the court ruling. He highlighted that the matter involves public policy, good governance, and Government credibility. The dispute is increasingly becoming a question of investor confidence, as uncertainty over the charges could deter investment in aquaculture, particularly in the Lake Victoria Basin.
Aquaculture has become a significant source of private investment, employment, and food security in the region, which has seen a decline in traditional economic activities such as sugar, cotton, and capture fisheries. Ondeng stressed the importance of public policy encouraging investment and enterprise, warning against creating uncertainty at a time when the sector is beginning to realize its potential.
He disclosed that stakeholders are mobilizing support for a petition to President William Ruto, with public leaders also expressing concerns about the impact of the disputed levy on livelihoods and investment in the broader Blue Economy. LVA remains committed to dialogue with the Government and believes implementing the task force recommendations offers a way out of the impasse. However, LVA is not the only party challenging the levy.
Kisumu cage farmer Victor Didi has filed a new constitutional petition seeking conservatory orders to halt the implementation of the five per cent ad valorem levy. The High Court has issued interim conservatory orders pending further directions. Didi’s case adds a fresh legal dimension to the dispute, with stakeholders questioning the economic impact of the levy and fearing its enforcement following the dismissal of LVA’s earlier petition.
At the grassroots level, operators argue that the additional charges could further squeeze already narrow profit margins. Dunga farmer Hosea Ojwang described the new levies as punitive, saying they would eat into operators’ earnings and make it challenging to sustain and expand businesses. Asat fish farmer Beatrice Awino echoed similar sentiments, stating that the additional costs would render aquaculture less viable.
The renewed pressure from industry players comes as the Government faces calls to revisit the disputed charges, clarify its enforcement position, and implement recommendations reached through its consultative process.
