Stakeholders decry state of fishing industry, but is Finance Bill 2023 the magic bullet?

The passage of the controversial Finance Bill 2023 has raised hue and cry from the public, with lawmakers coming under intense pressure to amend, but despite mwananchi’s protests, it fell on deaf ears, sailing through on the floor of the House, and now, when all is done and dusted, will get a presidential assent, to become law.

And when it takes effect, the cost of living is set to shoot sky high, making the tough economic times even harsher, for an economy that is already on its knees.

Matters have not been made any easier with the 16 percent Value Added Tax on petrol and petroleum products, a 100 percent increase on the current levy.

This is the Achilles heel, and every sector is reeling in shock, uncertain of what tomorrow holds.

But as Kenyans lament over the Bill, one of the positive clauses of it,  is the government's move  to  introduce excise duty on imported fish at Ksh 100,000 per metric ton or 10 percent of the custom value to protect fishermen, raising cautious optimism that the fish importation levy,  could help salvage,  and also  inject a new lease of life to the ailing sector, which remains the major economic lifeline of western Kenya counties; Kisumu, Siaya, Homa Bay, Migori and Busia.

At the Coast, along the shores of Indian Ocean, where fishing is equally practiced, fishermen and traders hope that the fish importation levy will help cushion the local fishing industry that has come under immense pressure more so with the opening up of the market and the influx of the delicacy, more so from China.

Aware of the grumbles, Cabinet Secretary for Mining, Blue Economy and Maritime Affairs, Salim Mvurya, in an interview with Citizen Digital, gave an assurance that the import levy, as captured in the Finance Bill 2023, will help revolutionize the local fishing industry, but the million dollar question is whether it is the much sought after magic bullet.

“We have introduced an import levy so that it becomes expensive to import fish in our country because we believe that we have capacity in the marine waters, we also have capacity in the inland waters,’’ CS Mvurya said, in reference to the fishing activities along the Kenyan lakes and the Indian Ocean, assuring Kenyans that going forward the country will explore its full potential in the Marine waters and also in the Inland waters.

"For example there are very few people who are aware that Lake Turkana in Turkana County has a big potential in fisheries production and currently is the only inland waters that have production and selling of Mango Tilapia,” he explained.

According to CS Mvurya, the Mango Tilapia, a special species of Tilapia which is common in Lubumbashi and Kinshasa in the Democratic Republic of Congo, is available in Lake Turkana, noting that the government is putting in place measures to provide the cooling facilities to delay sales through value addition so that the fishing community in the country can be able to reap benefit maximum benefits from their catch.

‘’The other reason we welcome the import levy is because we also want to inspire boat making so that we can have local boats being made here in Kenya and that will bring down the cost of fisheries in our country,’’ Mvurya added, highlighting the impact the local fishing has on the economy.

Along the shores of Lake Victoria such as Mageta Island and many other beaches, the youth mainly rely on self-made boats for their fishing expeditions, and this has become their lifeline, and should the government streamline the sector through the provision of better shipping facilities, it could act as a magic bullet, injecting not just the spark but also helping turn around the economic situation of the youth and women, many of whom rely on the fishing business for their upkeep.

The Finance Bill 2023 comes at a time when fishermen and fish traders are lamenting over poor returns with the majority blaming the growing imports of fish imports from China for the market woes.

In Nairobi, Bon Omondi, a fish trader at city market says he is recording huge losses as people are no longer buying fish.

His dull face in the course of the interview tells it all.

At one point he pauses, surveys the surrounding delicacy, stacked in a bucket full of ice then continues, “Fish is coming but people are no longer buying it, I am stuck with it in the fridge,” Omondi lamented.

Not far away from him, stands Bonface Otieno, another fish trader. Like Omondi, he says he’s been forced to adjust the fish prices so as to cater for the daily expenses of running the business.

“When the fish comes from Kisumu or Mbita you will pay for everything, if it gets down here, there is also someone who sleeps here to offload it from the truck , that guy has to be paid, so it is a process, it is not easy, life has become difficult even for us fish traders,” Otieno lamented.

Their pain, losses and struggles, mirrors that of their peers stretched in the beaches along Lake Victoria in Busia, Budalang’i, Kisumu and Siaya, who put up a brave face, their resilience driven by the hope that one day things will be better. After all, they don’t have many options, and quitting is not one of them.

According to the traders, imported fish are cheaper compared to fish from the local lake. Currently a kilogramme of fish fillet sells at Ksh750 shillings at the city market.

But even traders lament the poor state of business, questions abound as to why there is low consumption of the delicacy. This state of affairs has piqued the interest of CS Mvurya who says that going forward more interventions will be put in place to ensure that fish eating culture is improved in the country, to have more households partake of the delicacy.

“The interventions will also look at school feeding programmes coupled with fisheries so as to improve the country’s rating on fish eating behaviour, if you look at the numbers, we are not doing very well as Kenyans. So I take this opportunity to encourage Kenyans to eat fish,” CS Mvurya said.

Nutritional value

Fish is known to be rich in protein, especially the fresh tilapia which is recommended for children. Mary Kimani, head of the department of health and nutrition at Action Against Hunger notes that fish is packed with protein, vitamins, and nutrients that can help reduce the risk of a heart attack, helps to keep the brain healthy and also supports bone and eye health.

“Fish is a nutritious food packed with nutrients which are essentially required for healthy growth and development,” Kimani said.

Currently, Kenya’s demand for fish stands at 450,000 tonnes a year while production level is less than 35,000 tonnes meaning that the market need is never met.

“Aquaculture in our country is still at KSh 8 billion annually which is around 27,000 metric tonnes and as we want to grow our aquaculture production in the inland waters and also the other areas of our country it is also important to look at the entire value chain,” CS Mvurya noted.

As Kenya lags behind, countries in the Far East top in fish in consumption.  China, Myanmar, Vietnam, and Japan top in that order, as the number one consumers of the delicacy. They are followed by India, Malaysia, Cote d'Ivoire, Mexico, Indonesia, and Mozambique, in the top ten, in that order.

The author, Gentrix Oduor, has 10 years’ experience in journalism. She has a bias for Science, Health, and Features reporting.

gentrix.oduor@royalmedia.co.ke