Kagwe Weighs Duty-Free Maize Imports as Production Falls

Agriculture Cabinet Secretary Mutahi Kagwe is considering a request by cereal millers to allow the duty-free importation of three million tonnes of white maize as Kenya faces a sharp decline in domestic production.

The proposed importation is aimed at preventing a shortage of maize and containing the rising cost of maize flour, commonly known as unga, which remains a key food item for millions of Kenyan households.

The Cereal Millers Association (CMA) has asked the government to gazette three million metric tonnes of white maize for duty-free importation. The association argues that removing import duty would reduce the cost of bringing maize into the country and give millers more options when sourcing grain.

CMA Chief Executive Officer Paloma Fernandes said Kenya was experiencing one of its most significant declines in maize production in recent years.

Fernandes said only six major maize-producing counties were expected to produce more than one million bags during the current season, raising concerns about the country’s ability to meet domestic demand.

“This is the steepest decline in production and it is huge for us,” Fernandes said during a grain-sector meeting convened by CS Kagwe.

The millers’ association wants the duty-free import window to remain open for nine months. It says the extended period would give importers enough time to negotiate supply contracts, secure financing and arrange transportation and shipping.

The association also wants millers to have the flexibility to source non-GMO white maize from both regional and international markets, depending on availability and prices.

Zambia, Tanzania identified as sources

Zambia and Tanzania have emerged as potential sources of maize as Kenya seeks to bridge the anticipated supply gap.

Kenya’s High Commissioner to Zambia, Lilian Tomitom, said Zambia currently has maize available for export.

She said Kenyan traders operating in Zambia and Malawi could help facilitate the movement of maize to Kenya.

“There is enough maize,” Tomitom said.

Kagwe called for discussions with the Zambian government to explore ways of lowering the price at source. He said transport costs remained a major challenge that could make Zambian maize expensive for Kenyan consumers.

The CMA, however, warned that reliance on Tanzania could expose Kenya to supply disruptions because Dar es Salaam may restrict maize exports when its own domestic stocks decline.

Fernandes said maize sourced from Zambia and transported through Tanzania could also face challenges if export restrictions are introduced.

She therefore urged the government to allow importers to explore international markets whenever regional supplies become unreliable.

Government targets yellow maize for animal feed

While the request for duty-free white maize is still being considered, Kagwe said the government was keen to gazette 360,000 metric tonnes of yellow maize specifically for animal-feed manufacturers.

The proposal is intended to reduce the dependence of feed manufacturers on white maize.

Currently, both human food processors and animal-feed manufacturers compete for available maize supplies. The government believes directing yellow maize towards the feed industry could reduce that competition and leave more white maize available for human consumption.

The move could also help stabilise supplies for millers and reduce pressure on maize prices.

Kagwe said the government had to act early to prevent shortages.

“We cannot afford not to have maize,” he said.

Government warns against unsafe imports

Despite the push to increase imports, Kagwe warned traders and millers against bringing substandard maize into the country.

He said all imported grain must meet Kenya’s sanitary and phytosanitary requirements, including standards on moisture and aflatoxin contamination.

“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 said the government should explore testing systems capable of determining the quality of maize within about 10 minutes instead of procedures that can take several hours or, in some cases, days.

Kagwe further called for the establishment of more efficient one-stop border processes to reduce delays in clearing maize consignments.

According to the CS, trucks can remain at border points for between three and five days, increasing transport, storage and financing costs. These additional expenses are eventually reflected in the price paid by consumers.

“Government must operate at the same pace as the private sector for efficiency,” Kagwe said.

Government strengthens grain reserves

The government is also working to strengthen the country’s strategic grain reserves as it prepares for potential supply pressures.

The National Cereals and Produce Board has indicated that storage capacity equivalent to approximately two million 90-kilogramme bags is available.

The government is expected to weigh the proposed white maize imports against domestic production levels, prevailing market prices, available stocks and the need to keep maize flour affordable.

The decision will be closely watched by millers, farmers, livestock producers and consumers as Kenya seeks to balance food security with the need to protect local producers.

If approved, the three-million-tonne duty-free importation plan would significantly increase maize supplies in the domestic market. The proposed yellow maize allocation for animal feeds could also reduce competition for white maize and help ease pressure on supplies intended for human consumption.

The government now faces the task of securing adequate maize supplies while ensuring imported grain meets safety standards and reaches the market without unnecessary delays or additional costs.