July 4, 2024

Treasury grants duty waivers for maize, rice imports amid looming crisis

3 min read
Treasury grants duty waivers for maize, rice imports amid looming crisis

Treasury grants duty waivers for maize, and rice imports in a bid to cushion Kenyans from the high cost of living

Treasury grants duty waivers for maize, and rice imports in a bid to cushion Kenyans from the high cost of living.

The government, through Treasury Cabinet Secretary Njuguna Ndung’u, has granted tax waivers for importers of white maize grain and white Grade 1 milled rice in an effort to protect Kenyans from high prices of maize flour and prevent a food catastrophe.

A gazette notification published on Friday states that from March 2023 to August 6, 2023, registered millers and traders would be able to import up to 500,000 metric tons of white maize grain duty-free.

The move is in line with section 114 (2) of the East African Community Customs Management Act, 2004.

The imported maize grain must, however, adhere to a number of quality requirements, including a moisture content limit of 13.5%, an aflatoxin limit of 10 parts per billion (ppb), and approval by the Kenya Bureau of Standards and the Department of Public Health.

As a substitute source of starch for Kenyans, the Treasury CS also granted traders an import tariff relief so they may bring in up to 500,000 metric tons of white Grade 1 milled rice.

The waiver applies to rice imported on or before the 6th of August 2023.

The imported Grade 1 white milled rice must adhere to all applicable local, regional, and international food and rice standards as well as Kenyan laws and Kenya Bureau of Standards regulations.

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Similar to the maize grain imports, the rice must also be accompanied by a certificate of conformity issued by the Kenya Bureau of Standards.

These measures are aimed at addressing the impending food crisis and ensuring food security for Kenyans. 

The Cabinet Secretary for the National Treasury and Economic Planning has urged traders and millers to take advantage of the Import Duty Waiver and ensure compliance with the set standards and conditions for the imports.

The decision comes after Agriculture CS Mithika Linturi warned of an impending maize crisis in the country due to drought, pests, diseases, and high production costs. 

He said that the country’s maize stocks were expected to run out by April 2023.

Linturi also revealed that the government had signed a deal with Zambia to allow Kenyan farmers to grow maize there for export back home. 

He said that Zambia had offered land and favourable conditions for maize production.

Some farmers’ groups, however, expressed concern over the impact of maize imports on local production and food security. 

They also opposed the government’s push for genetically modified (GMO) maize varieties, saying they posed health and environmental risks.

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