by PressCorn imports to Kenya will reach record levels
Kenyan government forced to increase corn imports
According to official sources, this year corn imports to Kenya will reach the highest values since 2017. For this purpose, white varieties of grain will be supplied to the country for three months, and a total of 540 thousand metric tons of products are planned to be purchased. This step is due to the high risk of corn shortages, and the authorities want to avoid shortages with the help of foreign supplies.
In order to purchase this amount of grain, the Kenyan government authorized the purchase of corn from importers who are not members of the East African Community. These shipments have been exempted from the duty imposed on the products when they enter the country. Imports will be made exclusively of white corn of non-GMO varieties. However, purchases will be made only under a license issued by the relevant ministry. Such a decision will avoid the purchase of grain by unscrupulous traders for the purpose of further speculation about the products.
Kenya has been feeling pressure from reduced supplies and reduced stocks since March. As a consequence, the price of corn has risen from 2,800 shillings per 90 kg to 4,500 shillings in just three months. Experts hope that the elimination of the import duty will eliminate the rise in the cost of grain. In addition, the absence of import tariffs will stabilize the domestic market. According to the ministry, a number of local farmers are deliberately holding on to corn stocks, waiting for prices to rise even higher. Importing grain without duty will force them to start selling their products.
According to the local bureau of statistics, corn production dropped almost 13 percent last season, to 36.7 million 90-kilogram bags. The reason was prolonged periods of drought. To meet the needs of the domestic market, grain imports have almost doubled since 2020 and reached the mark of 486,500 thousand metric tons. The government had to take a serious step, increasing the supply of the crop to record levels. Prior to that, corn was imported in such volumes in 2017, when 1.33 million tons of the crop were bought. This caused discontent on the part of local producers, who hoped to increase their income by increasing the cost of grain.
It should be noted that Kenya is one of those countries that have been acutely affected by the pandemic and geopolitical conflicts. The cost of living here has risen by almost 7% in one year. Food prices, such as oil, rice, and cornmeal, have risen, and gas prices have risen significantly. Inflation is rising faster than people’s wages, and households are forced to cut their spending, sacrificing necessities.