The US government has stepped up pressure on Kenya to level the playing field for its maize exports, citing trade practices such as steep taxes and cumbersome regulations.
The US Trade Representative Jamieson Greer on Monday cited Kenya’s maize import market conditions in a list of unfair trade practices faced by American exporters globally.
“Kenya imposes a 50 percent tariff on imports of US corn and imposes burdensome regulatory requirements, effectively blocking US exports of corn. Kenya's market for feed corn is currently estimated at $50 million (Sh6.47 billion), with a potential to grow by 30 percent by 2027,” he pointed out in a post on the X social media platform.
“Securing market access for American farmers will ensure they can compete on a level playing field,” the official added.
Kenya maintains a steep ad-valorem import duty of 50 percent for maize from outside the East African Community (EAC), in line with the bloc’s Common External Tariff (CET), while maize imported from EAC countries enjoys duty-free access.
However, the CET tariff on maize imports is temporarily waived in instances where the government seeks to stabilise domestic prices of the commodity. For example, the Ministry of Agriculture and Livestock Development is set to grant an exemption from the CET when it opens imports of 5.5 million bags of yellow maize to ease pressure on the white variety of the commodity, whose prices have jumped by as much as 26.47 percent since December, hitting households reliant on the staple food.
Cabinet Secretary Mutahi Kagwe said that the State would grant a 50 percent duty waiver on yellow maize imports for a year.
“The Ministry of Agriculture and Livestock Development notes the growing competition between animal feed millers and maize millers for human consumption over the limited maize grain stocks available in the country. As a result of this increasing demand, the price of a 90-kilogramme bag of maize has risen by approximately 26 percent compared to three months ago,” he said in a statement on Friday.
Data from the Kenya National Bureau of Statistics shows that a two-kilogramme packet of fortified maize flour sold for an average of Sh165.05 in March -- the highest level in 13 months. The price was 2.94 percent higher than in February and 14.11 percent above October last year.
Besides the high 50 percent tax on their exports, US traders have decried the stringent regulatory conditions imposed by Kenya on maize trade.
“Kenya subjects imported and domestically produced corn to a total aflatoxin limit of 10 parts per billion (ppb) and a 13.5 percent maximum moisture content. The aflatoxin limit in Kenya is lower than the standard adopted by the Codex Alimentarius and the US action level for aflatoxin, and Kenya has not provided adequate scientific justification for these requirements,” Mr Greer’s office lamented.
“As a result, most US exports are denied import permits. Under special circumstances – such as food shortages – Kenya has allowed higher moisture content for imported corn, which must then be dried and milled immediately upon arrival to reduce the risk of aflatoxin contamination,” the US Trade Representative added.
The US said that even for its corn exports that are permitted under special circumstances, the costs associated with the additional processing requirements make the exports largely uncompetitive.
The Ministry of Agriculture had projected a maize yield of 75 million bags in Kenya last season, based on favourable weather conditions and the government’s fertiliser subsidy programme. This would represent a 38.8 percent increase compared to the 47.6 million bags produced in 2023.
