The Kenya Forest Service (KFS) has announced a substantial increase in the cost of acquiring movement permits for timber and non-wood forest products.  

Effective from July 10, 2024, businesses and individuals in the timber industry will face a sharp rise in permit costs, with the fee for a single transport permit soaring to Ksh25,570, up from the previous Ksh2,000.  

The new fee structure includes a consignment fee of Ksh20,000, Value Added Tax (VAT) of 16% amounting to Ksh3,200, and a movement permit fee of Ksh2,000, which will also attract a VAT of Ksh320. Additionally, a Ksh50 service transaction fee will be applied for each transaction processed through the E-Citizen platform, which will be the exclusive channel for all payments.  

The updated regulations also introduce fees for charcoal transporters. Each bag of charcoal will incur a Ksh30 charge, with a VAT of 16% applied, alongside a Ksh50 e-Citizen transaction fee. Non-wood forest products will attract a fee of Ksh2 plus VAT of 16% and the e-Citizen transaction fee.  

KFS justified the increase to enhance revenue collection and streamline regulatory processes. The fee hike follows KFS’s recent decision to prohibit grazing in certain areas and implement forest zonation and mapping. The new guidelines will designate specific areas for grazing as part of the Participatory Forest Management Plans (PFMP). This zoning strategy is expected to improve forest health and sustainability.  

Industry stakeholders have expressed mixed reactions to the new regulations, as the steep increase in fees could pose a significant burden on small businesses and affect profit margins.