Tanzania Sets New Rules for Kenyan Maize Traders

The Tanzania government now demands that Kenyan maize traders seeking to import maize from the country to register their companies in Dar es Salaam.

“The ministry urges those who are not Tanzanians to register their companies and to follow the law of land so that they can benefit from doing grain business in the country,” the Tanzanian Ministry of Agriculture said in a notice.

According to the ministry headed by Hussein Bashe, the new move is aimed at protecting the country’s commodities and jobs from shifting abroad.  The ministry has however denied the claims that it had stopped the issuance of export permits, adding that it has rolled out measures to control the arbitrary export of grains.

“Tanzania hasn’t barred issuance of permits for maize exports and it is not planning to do so. Traders should follow crop export procedures including securing crop export permits that are issued free of charge,” the ministry for agriculture Hussein Bashe said in an interview with The Citizen.

The new regulations require traders seeking to export the commodity to present a tax clearance certificate and show a business permit issued by the Business Registrations and Licensing Agency (BRELA) allowing them to trade on grain.

It will also be mandatory for all importers and exporters to register with the Business Registrations and Licensing Agency (BRELA).

The new move by Tanzania is likely to make Kenyan traders shy away from importing grains from the country signaling a food crisis given the important role Tanzania has been playing in Kenya’s food security. Moreover, it is likely to lead to a domestic shortage that will revert the prices of the grain to around 5,900 shillings from the current 5,400 shillings per 90 kg bag.

Data from the ministry of agriculture shows that Kenya imported maize valued at 4.2 billion shillings from Tanzania in 2019.  In 2020, Kenya imported about 277,350 tons of maize (3.1 million 90kg bags) with about 95 percent of this coming from Uganda and Tanzania.

In January last year, Kenya imported over 450,000 bags (90kg bags) of maize from both Tanzania and Uganda. The Kenya Bureau of Standards (Kebs) said the maize coming in through the Namanga border has significantly declined, confirming that imports into the country at that point are originating from Zambia.

Kenya depends on imported maize to bridge the annual deficit. East African Uganda and Tanzania have been the key source of Kenya’s maize for decades. Imports from the two countries have recently declined, given that most of Uganda’s stock is heading to South Sudan, and Tanzania is cutting exports to protecting its local stock following poor harvests.

Related Content: Tanzania Freezes Maize Export Permits For Kenyan Traders