Government Considers Duty-Free Importation of 3 Million Tonnes of Maize
Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe is considering a request by the Cereal Millers Association (CMA) to allow the duty-free importation of three million tonnes of white maize.
The proposal comes as Kenya faces a sharp decline in maize production, raising concerns about food shortages and rising prices of unga.
The millers want the Government to gazette three million tonnes of white maize for duty-free importation to bridge the anticipated supply gap and help keep maize flour affordable.
At the same time, Kagwe said the Government is considering gazetting 360,000 tonnes of yellow maize specifically for animal-feed manufacturers.
The move would encourage feed manufacturers to use yellow maize instead of white maize, leaving more food-grade maize for human consumption.
CMA has asked the Government to keep the duty-free import window open for nine months.
The association argues that a longer window would give importers enough time to secure supply contracts, financing and shipping arrangements.
It would also allow millers to source competitively priced non-GMO white maize from both regional and international markets.
CMA Chief Executive Officer Paloma Fernandes said Kenya was experiencing one of its steepest declines in maize production in recent years.
Only six major maize-producing counties are expected to deliver more than one million bags during the current season.
“This is the steepest decline in production and it is huge for us,” Fernandes said during a grain-sector meeting convened by Kagwe.
Kagwe backed consideration of the nine-month window, saying the Government needed to act early to avoid a maize shortage.
“We cannot afford not to have maize,” the CS said.
Zambia and Tanzania have emerged as some of the immediate regional sources of maize for Kenyan millers.
Kenya’s High Commissioner to Zambia, Lilian Tomitom, confirmed that Zambia has maize available for export.
She also said Kenyan traders operating in Zambia and Malawi were ready to facilitate supplies to Kenyan millers.
“There is enough maize,” Tomitom said.
Kagwe called for engagement with the Zambian Government to explore ways of lowering the source price and addressing the high cost of transporting maize to Kenya.
Transport costs remain a major challenge in making Zambian maize competitive in the Kenyan market.
CMA, however, warned that reliance on Tanzania could expose Kenya to supply disruptions if the country tightens exports due to declining stocks.
Fernandes also noted that maize transported from Zambia through Tanzania could be affected by such restrictions.
She urged the Government to give importers flexibility to source maize from alternative international markets when necessary.
While the proposed duty-free importation of white maize remains under consideration, Kagwe said the Government was keen to gazette 360,000 tonnes of yellow maize for animal-feed manufacturing.
The intervention is intended to reduce competition between human food and animal-feed manufacturers for white maize.
Feed manufacturers currently compete with millers for supplies of white maize, which is a key raw material for unga.
Increasing the availability of yellow maize for animal feeds would therefore leave more white maize for human consumption.
The Government hopes the measure will help ease pressure on food-grade maize and support the availability of affordable maize flour.
Kagwe stressed that increased maize imports must not compromise food safety.
He said all maize entering the country must meet sanitary and phytosanitary requirements, including moisture and aflatoxin standards.
“Do not bring maize that is not going to pass the tests. There should be no maize in our stores that has been condemned,” Kagwe said.
The CS also called for faster laboratory testing of imported maize.
He proposed testing systems capable of determining maize quality within about 10 minutes, replacing processes that can take four hours or, in some cases, several days.
Kagwe further called for one-stop border clearance procedures to reduce delays.
He said maize can remain at the border for three to five days, increasing transport, storage and financing costs that are eventually passed on to consumers.
“Government must operate at the same pace as the private sector for efficiency,” he said.
The Government is also working to strengthen the country’s strategic grain reserves.
The National Cereals and Produce Board (NCPB) has indicated that storage capacity equivalent to approximately two million 90-kilogramme bags is available.
“We want to stock our grain reserve,” Kagwe said.
Millers have also asked the Government to settle about KSh4 billion they say remains outstanding from a subsidy programme implemented about five years ago.
The millers argue that settling the outstanding funds would improve their ability to restock maize and support continued supply to the market.
The maize challenge comes at a time when Kenya is also facing pressure in the wheat sector.
This has raised concerns about simultaneous supply risks involving two of the country’s major staple foods.
Kagwe called for increased domestic wheat production while the Government explores longer-term regional sources suitable for commercial production.
The Agriculture and Food Authority (AFA Kenya) will organise a retreat to examine measures for boosting domestic wheat production.
The discussions are expected to focus on mechanisation, irrigation and improvements in farm productivity.
For maize, the Government’s immediate strategy is taking shape on two fronts.
The first is increasing yellow maize supplies for animal-feed manufacturers to reduce their dependence on white maize.
The second is considering the Cereal Millers Association’s request to allow duty-free imports of three million tonnes of white maize to bridge the expected food-market gap.
The interventions are aimed at securing adequate maize supplies before shortages worsen.
The Government also hopes to protect white maize supplies for human consumption and ultimately keep unga available and affordable to Kenyan households.
