This archive report was first published on 24 July 2019.
Kenya's Maize Crisis: A Complex Web of Politics and Supply ¶
As of July 2019, Kenya is facing a severe maize shortage, with the price of flour rising by over 20% in the past few months. The situation has been exacerbated by squabbling among officials over the amount and source of the grain.
Traders have accused Kenya Revenue Authority officials of working slowly, leading to a pile-up of trucks transporting maize at the Taveta-Holili border point.
The government has indicated urgency in allowing imports, with a shortfall of 4.3 million bags against a 4.2 million bag consumption demand per month. In June 2019, President Uhuru Kenyatta struck a deal with President John Magufuli of Tanzania to buy 1.2 million bags of maize.
However, maize traders importing the commodity from Tanzania have accused KRA of sloth in clearing the cargo. The Agriculture Cabinet Secretary, Mwangi Kiunjuri, has announced plans to open an importation window to cover for an anticipated shortfall of 12.5 million bags during the period from July to December.
But Strategic Food Reserve Trust Fund chairperson Noah Wekesa dismissed claims of a maize shortage in the country, saying it was "artificial" and exaggerated to justify plans by cartels to import the grain. The 12.5 million bags would secure supply of the country's staple over the next six months and contain the possibility of further maize flour price increase.
Flour currently retails at between $1.14 (Sh120) and $1.18 (Sh124), up from $0.86 (Sh90) last year. The government plans to import mainly from the Common Market for East and Southern Africa countries.
However, controversy has emerged with the Strategic Food Reserve Trust Fund that Kenya needs to import only two million bags owing to the fact that current reserves and projected harvests offer adequate supplies for the country. Politicians and farmers have also opposed the importation plans arguing the government should fund the cash-strapped National Cereals and Produce Board to enable it buy maize from farmers who have continue to retain stocks due to low prices set by the government.
According to the East Africa Grain Council, Ethiopia and Zambia will be the key beneficiaries if Kenya open the imports window and limit imports from within Comesa. Ethiopia has emerged as a top maize exporter in the wider eastern Africa region owing to a steady increase in its production capacity. In 2017, the country exported 240,000 tonnes into Kenya.
