Agriculture Cabinet Secretary Mithika Linturi on Tuesday, April 25, issued a 7-day ultimatum to millers and grain importers holding duty-free licenses.
In a statement, Linturi demanded proof of trade documents to ascertain that the millers and grain importers had begun importing maize in line with the duty waiver permits they hold. Failure to which, the companies risked losing their permits.
The CS explained that the millers were expected to import enough maize and rice before August 2023 when the duty waiver permits are scheduled to expire.
Linturi made the remarks at Kilimo House during a consultative meeting with millers and grain importers who were granted duty waiver licenses by the government to import duty-free maize and rice.
"I have noted under-performance by the millers and grain importers in the importation of maize and rice since less than 10% of the commodities have been imported after they were granted import duty waiver by the government in December 2022," Linturi stated.
So far only 90,621 kilograms of maize and 95,381 kilograms of rice had arrived in the country according to official data from the Ministry of Agriculture and Livestock Development.
The Government, through the Ministry of Agriculture and Livestock Development, granted millers and grain importers a duty waiver of 1.4 metric tonnes of maize and 1.1 metric tonnes of Rice in December 2022 in a bid to lower the prices of maize flour and rice in the country.
The CS further offered millers and grain importers who have already imported their duty-free consignments an additional allocation to import the commodities under the duty-free arrangement.
At the same time, the Cabinet Secretary warned some unscrupulous millers and traders who imported maize and rice under the tax waiver quota and attempted to re-export the same grains to neighboring countries.
"A government multi-agency team recently impounded some grains that were being re-exported to neighboring countries since they were imported at a lower price under the duty-free arrangement, police are investigating the matter and those involved will be arraigned in court," stated Linturi.
Linturi also declared that no extension of the duty waiver licenses will be allowed beyond August 2023 when local maize farmers are expected to harvest their yields.
The Agriculture CS on Wednesday, March 22, asked Kenyans to eat rice, potatoes, and other foods as an alternative to ugali.
Speaking before a parliamentary committee, the CS explained that the government was facing difficulties in purchasing maize for the country because of a worldwide shortage.