The Ministry of Agriculture and Livestock Development is in talks with the Finance Ministry to remove VAT on crop processing machinery.
Minister Peter Kagwe said the proposal would improve investment in the agricultural sector and boost the competitiveness of Kenyan products.
He made the remarks during the launch of Sonalika tractors by Elgon Kenya at the KICC Hall in Nairobi.
Tractors are already tax-exempt and Sonalika models start at around Sh1.4 million. The company partners with banks to offer loans of up to 90 percent.
