Government To Import 900,000 Tonnes Of Duty-Free Maize
KEY POINTS
The price of flour has shot to 220 for a two-kilogram packet from 180 shillings on the back of a sharp rise in the cost of maize, which now stands at 8,800 shillings for a 90-kilogram bag.
The Kenyan government is planning to import about 900,000 tonnes of duty-free white maize by August 2023 in a bid to lower prices and ease the high cost of living.
According to the latest data from the Ministry of Agriculture and Livestock Development, barely one-third of the desired imports had landed in the country by the end of June, ahead of the closure of the duty-free import window in August.
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The Ministry of Agriculture and Livestock Development reported the importation of a mere 259,470 tonnes of maize, which represents 29 percent of expected imports between February and the end of June.
However, the bulk of imports has come from the region as opposed to being sourced from outside the East African Community and COMESA as earlier expected.
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“All imports (in June) were from East Africa Community countries, mostly Tanzania. According to the Kenya Grain Millers Association, the reduced imports are due to a generally tight global market, coupled with reduced local demand which is attributed to lower purchasing power,” the ministry said in its latest food and nutrition security bulletin.
“It is further noted that although the government gave a duty-free import window for maize outside the EAC and COMESA, very little has been imported by the legible millers and traders as they report inadequate global supplies, higher freight, and insurance costs as well as a shortage of the dollar. The imported maize arriving at Mombasa is slightly more expensive compared to local supplies.”
In February 2023, the government ordered the importation of duty-free maize to cushion consumers who are currently grappling with the high cost of the staple on the shelves.
Related Content: Why is Maize Flour So Expensive in Kenya: Comparative Analysis With Other African Countries
The price of flour has shot to 220 for a two-kilogram packet from 180 shillings on the back of a sharp rise in the cost of maize, which now stands at 8,800 shillings for a 90-kilogram bag.
According to Agriculture Cabinet Secretary Mithika Linturi, under the arrangement, the Kenya government will contract Zambia to grow food and export to Kenya. Further, the Zambia government had earlier granted the Kenya government land to grow more food whereby local farmers will be contracted to grow maize on behalf of the government.
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