Kenya faces wheat import delays as imports cover 95% of the country’s needs
Kenyan millers warn that delays in C60 wheat import approvals are raising demurrage, storage and financing costs in a country reliant on imports for 95% of wheat needs. Black Sea disruptions add risks, while industry seeks faster approvals to prevent higher flour, bread and food prices.
Kenyan millers are warning of problems with wheat imports due to delays in the government’s issuance of C60 import approvals. The situation is particularly significant given the country’s heavy dependence on foreign supplies: imports cover around 95% of Kenya’s wheat requirements, while domestic production accounts for only about 5%.
According to the Cereal Millers Association (CMA), delays in issuing approvals are preventing imported wheat consignments from clearing on time and are increasing demurrage, storage and financing costs. If the situation persists, higher costs could eventually be reflected in prices for flour, bread and other wheat-based products.
Under the existing import system, millers must first purchase available domestically produced wheat before receiving permits to import specified volumes under the Duty Remission Scheme. As part of the Local Wheat Purchase Programme, millers have committed to buying domestic wheat from farmers at KSh 5,100 per 90-kg bag, up from KSh 4,750 previously.
Additional risks are coming from the international market. Kenyan millers point to disruptions to Black Sea exports and damage to export infrastructure, which are increasing shipping risks and insurance costs and could ultimately raise the cost of wheat imported into the country.
The CMA has called on Kenya’s Agriculture and Food Authority and other government agencies to accelerate the issuance of outstanding C60 approvals and prioritise wheat consignments that have already arrived at ports. The industry warns that further administrative delays could increase pressure across the wheat supply chain and eventually lead to higher food prices.
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Source : Ukr Agro Consult
