Kenya announces 50% duty waiver on importation of yellow maize
The move aims to stabilise ‘unga’ prices while easing pressure on the limited maize grain stocks in the country.
The government has announced plans to waive the import duty on the importation of yellow maize in a bid to stabilise ‘unga’ prices while easing pressure on the limited maize grain stocks in the country.
According to Agriculture Cabinet Secretary Mutahi Kagwe, the decision comes as maize prices have surged on the back of growing competition between animal feed millers and maize millers for human consumption over the available stocks.
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“As a result of this increasing demand, the price of a 90-kilogram bag of maize has risen by approximately 26 percent compared to three months ago,” Kagwe said.
He reckons that the upward trend in maize prices has directly impacted the cost of production, prompting millers to pass the increased costs onto consumers through higher prices of maize flour (unga).
“To address this, the government will gazette a 50 percent duty waiver for the importation of 5.5 million bags of yellow maize over one year,” he said.
Fair prices
He adds that the move will allow millers focused on human consumption to access available maize at fairer prices, ultimately leading to reduced production costs and more stable unga prices for consumers.
The yellow maize will primarily be used for the production of animal feeds, being a key ingredient in animal nutrition, especially for livestock and poultry and is not typically used for human consumption in the country.
Looking ahead, CS Kagwe has urged farmers to consider the cultivation of yellow maize to meet the domestic demand of over one million metric tonnes required annually by the animal feed industry.
“This shift will help reduce dependency on imports and contribute positively to our economy,” he said.
Additionally, he noted that the government will release regular maize from the National Strategic Food Reserve to millers producing maize flour for human consumption to cushion consumers from the impact of soaring unga prices.
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