The government has suspended all levies on imports for maize and animal feed products effective July 1, 2022.
CS Munya announces measures to bring down cost of maize flour
The new measures, including suspension of 7 levies, are now expected to lower the cost of maize flour
The announcement was made by Agriculture CS Peter Munya who said that the directive would help bring down the cost of maize flour which has risen to over Sh200 for a 2kg bag.
“The government is looking into ways and means of addressing the cost of unga to bring it down so that consumers can afford it,” CS Munya said after inspecting the importation of maize from Tanzania at the Namanga Border Post.
Some of the costs that have been waived include KEBS levy, Kenya Plant Health Inspectorate Service (KEPHIS) levy, AFRA levy, Port Health Service levy, KRA levy, Railway Development levy, and Importation Declaration Fund levy.
Flour companies have also been granted permission to import maize without paying tax duty.
The directives will be in place for the next 90 days before the next harvest season.
“That is a decision that has been arrived after lengthy discussions with all the government agencies that operate from our borders,” CS Munya said.
He warned that any miller hoarding maize to create an artificial shortage would suffer losses after the cheap maize is imported into the country.
“We are also asking those who are holding maize… because we know that they are individuals who are holding maize…when this cheap maize comes don’t complain that the prices have gone down,” he cautioned.
Tanzanian authorities are reported to have increased the cost of acquiring export permits by traders from Sh27,000 per truck to Sh52,000.
The move caused a huge snarl-up of trucks at the Namanga border over the last one week as traders and truckers were caught off-guard by the new requirement.
The new measures are now expected to fast-track the clearance of trucks at the border point.
“In addition to that, we are also looking for other ways and means of actually bringing in maize. We will not entirely rely on private citizens,” Munya added.
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