Kenyan consumers could soon pay more for wheat flour, bread and chapatis if delays in approving wheat imports continue, the Cereal Millers Association has warned.
The warning comes as millers face rising costs linked to consignments waiting for government clearance. The association says the delays could add demurrage, storage and financing charges to wheat shipments. Those costs could eventually reach consumers.
Paloma Fernandes, the association’s chief executive, urged the government to release outstanding C60 import approvals.
Every additional day of delay adds demur-rage, storage and financing costs,” Fernandes said. She added that the extra charges did not benefit farmers, millers or consumers.
A C60 is a government approval that allows authorised millers to import specified quantities of wheat under the Duty Remission Scheme.
The dispute comes against the backdrop of Kenya’s long-standing dependence on imported wheat. The Agricultural and Food Authority estimates that the country needs between 2.2 million and 2.4 million tonnes a year. Local production meets only a fraction of that demand.
That leaves the country exposed to disruptions in international markets.
Kenyan millers say they have met their obligations under the Local Wheat Purchase Programme. They have committed to buying locally produced wheat at Sh5,100 for a 90-kilogramme bag, up from Sh4,750.
The arrangement is intended to give farmers a dependable market while allowing millers to supplement local supplies with imports.
Supporting local farmers and ensuring adequate imports are not competing objectives. Kenya needs both,” Fernandes said.
But the association says import approvals are still outstanding. It wants the authorities to prioritise wheat already at the port and prevent future administrative delays from affecting shipments.
Global markets add pressure
The concerns come at a difficult moment for the global wheat trade.
The Black Sea, a major export route for wheat from Russia and Ukraine, has faced increasing attacks on ports, vessels and other infrastructure. The disruption has affected shipping and pushed up some grain-market prices.
Wheat prices rose sharply in July as traders assessed the risks to supplies from the region.
Russia is particularly important to Kenya because it has become one of the country’s major wheat suppliers.
The combination of global uncertainty and delays at home has therefore raised concerns among millers about maintaining adequate stocks.
Still, the current warning does not mean flour prices have already risen. The association is cautioning that prolonged delays could increase costs if they continue.
Kenya also faces a longer-term challenge. Local wheat production remains well below national demand, making imports essential to keeping the milling industry supplied.
The government, meanwhile, has continued to encourage farmers to produce more wheat. AFA has said increasing local production remains important, while millers have been required to buy available domestic wheat before receiving import allocations.
For consumers, the immediate concern is whether the additional costs being incurred along the supply chain will eventually appear on shop shelves.
Fernandes said the priority should be keeping wheat moving into the country while ensuring farmers have a reliable market for their produce.
“At a time when the global wheat supply chain is once again under pressure, Kenya cannot afford to create an additional bottleneck at home,” she said.
The call now rests with the Agricultural and Food Authority and other government agencies to clear the outstanding approvals and keep wheat shipments moving.
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