GTAP Resources: Resource Display
| GTAP Resource #7481 |
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"Unlocking Potential for Development of Kenya’s Aquaculture Sector" by Njeru, Tim, Tinashe Kapuya, Julius Mukarati, Lilian Kirimi, John Olwande, Tracy Davids and Karl Pauw Abstract The Kenyan fish industry has vast potential to boost economic growth, create jobs, and enhance producers’ welfare. However, the industry is at a critical juncture. Domestic producers are unable to meet the demand for the roughly 185 thousand tons of fish consumed in Kenya. The recent contraction in domestic supply, primarily due to reduced capture from Lake Victoria, which is plagued by overfishing and pollution, has led to a rapid increase in competitively priced fish imports, now accounting for a growing share of the domestic market. As part of the Policy Prioritization through Value Chain Analysis (PPVC) initiative, a deep-dive analysis of the aquaculture value chain revealed that Kenya has the potential to replace fish imports of up to US$30 million per year. This transformation could generate an estimated US$177 million in agri-food system GDP. The analysis recommended duty waivers for imported raw materials for animal feed, lifting the ban on GM products, developing supportive regulations for GM imports and production, and ensuring fair competition for cheap imports. The government allowed a duty waiver for raw materials since 2021, but it did not enhance long-term competitiveness in animal feed manufacturing or livestock value chains. Rising global prices, exchange rate shocks, unfavorable business costs (taxes, fuel, labor, energy), and a weak regulatory environment hindered progress, increasing competition from imports. This study aims to track how well the government has implemented recommendations from the deep dive analysis. Results indicate that feed policy reforms are crucial for the fish industry's full potential. Addressing barriers such as lifting bans on genetically modified products and developing supportive import and local production regulations is essential for aquaculture growth. |
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- Sustainable development - Agricultural policies - Supply chains - Partial and general equilibrium models - Africa (East) |
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If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.
Public Access No documents have been attached. Restricted Access No documents have been attached. Special Instructions This is a draft, not for publication |
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Last Modified: 9/15/2023 2:05:45 PM
