Taxation of Fisheries in Kenya: Neither Improving Management nor Raising Revenue?

The fisheries sector in Kenya can develop more sustainably and raise revenue. However, fish stocks are overexploited, and the sector generates little revenue for its management and development. Fisheries employ 1.6 million people, contribute 2 per cent of total foreign exchange earnings through exports and fishing agreements, and absorb rural labour. The sector needs more effective management to strengthen economic opportunities – revenue collected from it should be reinvested into fisheries to build its institutions.

There is now an opportunity for change. The implementing regulation for the 2016 Fisheries Management and Development Act (2016 Act) was officially adopted in summer 2024. This paper explores how the Kenyan government can use this momentum, and utilise taxation as a tool for both sustainable development of fisheries and raising revenue. Our research included a review of guiding legal documents, in-depth interviews, and analysis of data on domestic taxes.

Summary of ICTD working Paper 206.