The Kenyan government has announced a significant 50% duty waiver on the importation of yellow maize, aiming to alleviate the rising prices of maize flour (unga) that have surged due to increased competition for limited local maize stocks.
This initiative is expected to stabilize prices and ensure food security for consumers.
Key Takeaways
- The government will allow the importation of 5.5 million bags of yellow maize over one year.
- The duty waiver is aimed at reducing pressure on local white maize stocks.
- Imported yellow maize will be used primarily for animal feed, not human consumption.
- The price of a 90-kilogram bag of maize has increased by 26% in the last three months.
- Farmers are encouraged to grow yellow maize to meet domestic demand and reduce reliance on imports.
Background of the Decision
Agriculture Cabinet Secretary Mutahi Kagwe announced the waiver during a press briefing, highlighting the urgent need to address the soaring prices of maize flour, which have been exacerbated by a competitive market for both animal feed and human consumption.
The government’s decision comes as a response to the rising costs that have directly impacted consumers, with the price of maize flour increasing significantly in recent months.
Details of the Waiver
- Duration: The duty waiver will be in effect for one year.
- Quantity: A total of 5.5 million bags of yellow maize will be imported.
- Usage: The yellow maize will be designated or animal feed production, helping to alleviate the demand on white maize, which is primarily used for human consumption.
- Non-GMO Assurance: The imported maize will be non-genetically modified, ensuring it meets local agricultural standards.
Impact on Unga Prices
The rising demand for maize has led to a 26% increase in the price of a 90-kilogram bag of maize over the past three months. This increase has forced millers to raise the prices of maize flour, directly affecting consumers. The government’s intervention is expected to:
- Lower Production Costs: By allowing millers focused on human consumption to access maize at fairer prices, production costs are anticipated to decrease.
- Stabilize Unga Prices: With more maize available for human consumption, the prices of maize flour should stabilize, benefiting consumers.
Encouragement for Local Farmers
In addition to the importation strategy, CS Kagwe urged local farmers to consider cultivating yellow maize to meet the domestic demand of over 1 million metric tons required annually by the animal feed industry. This shift is seen as a way to:
- Reduce Dependency on Imports: By increasing local production, Kenya can lessen its reliance on imported maize.
- Boost the Economy: Encouraging local agriculture can contribute positively to the national economy and food security.
Conclusion
The Kenyan government’s decision to implement a 50% duty waiver on yellow maize imports is a strategic move aimed at stabilizing the prices of maize flour and ensuring food security for its citizens.
By addressing the competition between animal feed and human consumption, the government hopes to create a more balanced agricultural market that benefits both producers and consumers alike.
