Home Business Govt announces 50pc duty waiver on imported yellow maize

Govt announces 50pc duty waiver on imported yellow maize

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The government has introduced a duty waiver on imported yellow maize to address rising maize prices, which have been driven by increased competition between animal feed manufacturers and maize flour millers.

The waiver, which will be in effect for one year, will cover up to 5.5 million bags of yellow maize. However, the exemption will only benefit accredited animal feed millers, according to the Ministry of Agriculture and Livestock Development.

Agriculture Cabinet Secretary Mutahi Kagwe explained that the move is designed to ease demand on local white maize stocks by shifting animal feed producers toward yellow maize.

“Our aim is to reduce strain on food-grade maize supplies so that flour millers can access maize at more affordable rates,” said Kagwe. “This should help lower the cost of production and ultimately stabilize unga prices for consumers.” He also emphasized that the imported yellow maize will not be genetically modified.

The waiver comes at a time when the price of a 90-kilogram bag of maize has increased by roughly twenty-six percent over the past three months.

Kagwe also urged local farmers to consider growing yellow maize to help meet the country’s annual demand of over one million metric tonnes for the animal feed sector. He noted that increasing domestic production would reduce reliance on imports and support the national economy.

At the height of the 2023 drought, maize flour prices surged to between Ksh 180 and Ksh 200 for a two-kilogram packet. Currently, the same quantity retails at about Ksh 150.

In addition to the duty waiver, the government plans to release maize from the National Strategic Food Reserve to millers involved in producing flour for household consumption. Kagwe said this step is part of broader efforts to shield ordinary Kenyans from further increases in the cost of basic food commodities.

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