- Millers warn wheat flour prices could rise if C60 import approvals remain delayed.
- Millers say they have committed to buying local wheat at Ksh5,100 per 90kg bag.
- Global wheat prices rose 5.8% in July, adding pressure on Kenya’s flour market.
Kenyan consumers could face pricier wheat flour if delays in approving wheat imports persist, the Cereal Millers Association (CMA) has warned.
The association said outstanding C60 import approvals were preventing millers from bringing in wheat needed to supplement local supplies, a situation that could push up costs across the wheat value chain.
A C60 is a government control document that permits an approved miller to import a specified quantity of wheat under the Duty Remission Scheme for processing into flour for the Kenyan market
CMA Chief Executive Paloma Fernandes said millers had already fulfilled their obligations under the Local Wheat Purchase Programme by committing to buy locally produced wheat at Ksh5,100 per 90 kilogramme bag, up from Ksh4,750.
“Millers have fulfilled the requirements of the Local Wheat Purchase Programme and committed to purchase local wheat at Sh5,100 per bag,” Fernandes said.
She urged the relevant authorities to release the pending import approvals, warning that continued delays were increasing costs for millers. “With these commitments in place, we respectfully urge that the necessary import approvals be released at the earliest opportunity,” she said.
Fernandes said the delays were resulting in additional expenses related to demurrage, storage and financing, costs that would ultimately affect the wheat supply chain.
“Every additional day of delay adds demurrage, storage and financing costs which do not benefit the farmer, the miller or the consumer. They are simply additional costs being introduced into the food supply chain,” she said.
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Kenya relies heavily on imported wheat, with about 95 per cent of its requirements sourced from international markets. Local farmers account for approximately five per cent of production.
Under the current import arrangement, millers are required to purchase locally produced wheat before they can receive import permits through the C60 approval process.
CMA said its members had committed to purchasing local wheat as part of the arrangement. The milling industry also contributes close to Ksh2 billion annually through the Agriculture and Food Authority levy, which supports local wheat production and the Local Wheat Purchase Programme.
The delays come as global wheat prices remain under pressure. According to the Food and Agriculture Organisation, international wheat prices increased by 5.8 per cent in July and were 9.9 per cent higher than a year earlier.
The rise was attributed partly to disruptions affecting Black Sea exports and damage to export infrastructure.
The CMA had earlier cautioned that wheat consignments arriving without the necessary approvals could accumulate additional costs, further increasing pressure on the industry and consumers.
By Jonathan Mwinzi
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