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Kenya risks maize shortage as Comesa stock dwindles

Kenya risks maize shortage as Comesa stock dwindles
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Kenyans will have to wait longer for imported maize as various markets in the Common Market for Eastern and Southern Africa (Comesa) region experiences low levels of food stocks owing to high demand for the commodity.

Crops Development Principal Secretary Kello Harsama  Kello Harsama confirmed that companies licensed by the ministry to import duty-free maize have reported low levels of maize in the targeted markets. “Some of the value chain players we have licensed to import maize have reported decreased stocks in Ethiopia, Malawi, Zambia, Tanzania and Uganda among other market segments. This might delay and challenge imports arriving in time,” Harsama told Business Hub on Monday at Kilimo House.

He explained that the said markets have of late experienced low levels of the commodity owing to the ongoing drought and high demand of the same thus making it hard for the local traders to secure substantial volumes.  

Governments of the said countries, he added are rationing exports with a view to ensuring they have enough food to feed their populations. “The only country in Africa currently enjoying sufficient maize stocks is South Africa,” he added.  

The other market sources, Harsama said have adequate maize stocks include Vietnam, Brazil and Mexico.

The PS confirmed that the ministry has so far licensed more than 30 companies to import maize to stabilise the local market.  The companies already issued with letters are part of at least 250 traders who applied for import licences to bring in maize under the duty-free window almost two months ago.

More companies, he added will be licensed in the coming days. He stressed that the ministry is keenly vetting all the applicants before approving them. “Some of the companies we have licensed have promised to import maize by the end of February. But we are monitoring the situation and if any company will have not brought in maize in three months’ time will have its import permit revoked,” he added. 

Gazetted names

He defended the ministry against the accusation that it has not gazetted names of companies licensed to import maize. Harsama said gazettement would only have happened if the government was importing the commodity. 

Last week, value chain players interested in importing the 10 million bags of maize to supplement dwindling local stocks complained of government delay to gazette traders, millers and other interested businessmen. They warned that if the situation is not handled well consumers might be faced with high food prices as the delay in bringing in maize.

 However, the PS said government’s role is to facilitate the private sector do their business. Owing to the nature of the situation, the government allowed the private sector to import duty-free maize. 

The government will monitor the import flows to ensure there is enough in the market,” he added.  He emphasised that the government wants the traders and millers to sell imported maize at Sh4, 200 for a 90 kg bag.   The price, he explained is supported by the fact that the value chain players are enjoying duty waivers and further prices in the said Comesa market segments are within range.

In a gazette notice dated December 23, 2022, National Treasury and Planning Cabinet Secretary Njuguna Ndung’u officially gazetted the duty-free importation of 900,000 tonnes of white maize grain, 600,000 tonnes of milled rice, and 100,000 tonnes of sugar, maize and rice.

Large-scale farmers and small and medium millers under the umbrella of United Grain Maize Millers (UGMA) warned that delay in maize importation might complicate the food situation in the country as local stock will soon deplete.

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