Kenyans could face higher prices for wheat flour, bread, chapatis and other wheat-based foods if delays in approving wheat imports continue, the Cereal Millers Association (CMA) has warned.
The association in a press statement sent to Vantage Ke on Tuesday, August 11 revealed that outstanding C60 import approvals have delayed the normal clearance of some wheat consignments, exposing millers to additional demurrage, storage and financing costs.
A C60 is a government control document that allows 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 Officer Paloma Fernandes stated that millers had already met requirements under the Local Wheat Purchase Programme and committed to buying locally produced wheat at Ksh5,100 per 90-kilogramme bag, up from Ksh4,750.
“Millers have fulfilled the requirements of the Local Wheat Purchase Program and committed to purchase local wheat at Ksh5,100 per bag. With these commitments in place, we respectfully urge that the necessary import approvals be released at the earliest opportunity,” Fernandes said.
She warned that delays were adding costs to the wheat supply chain, adding “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."
The warning comes as Kenya remains heavily dependent on imported wheat. According to CMA, about 95 per cent of the country's wheat requirements are sourced from international markets, while local production accounts for about five per cent. This dependence leaves the country exposed to both international wheat prices and disruptions affecting global grain shipments.
The Food and Agriculture Organization (FAO) reported that global wheat prices increased by 5.8 per cent in July and were 9.9 per cent higher than a year earlier.
CMA also pointed to disruptions affecting wheat shipments through the Black Sea and Sea of Azov, including attacks on ports, vessels and export infrastructure in Russia and Ukraine.
The association said the disruptions have increased shipping and insurance risks while creating potential delays and increasing the cost of sourcing wheat from alternative origins.
For Kenya, CMA warned that higher international costs could compound the additional expenses being incurred because of delayed import approvals.
“At a time when the global wheat supply chain is once again under pressure, Kenya cannot afford to create an additional bottleneck at home.
"We should be doing everything possible to secure supplies and keep the cost of food stable, not adding costs through administrative delays,” Fernandes continued.
CMA stressed that the local wheat purchasing requirement and continued imports were not competing objectives.
The association said millers remained committed to purchasing locally produced wheat but needed imports to bridge the gap between domestic production and national demand.
It is now calling on the Agriculture and Food Authority (AFA) and other relevant government agencies to release outstanding C60 approvals, prioritise wheat consignments already at the port and ensure administrative processes do not delay import planning and vessel clearance.
The association's warning however does not mean that bread, flour or chapati prices have already increased. Rather, CMA says continued delays could increase the cost of wheat reaching Kenyan mills, creating pressure that could eventually be reflected in prices of wheat-based products if the additional costs are passed through the supply chain.
The developments will therefore be closely watched by consumers and businesses, particularly given Kenya's heavy reliance on imported wheat and the current pressure on global grain markets.
