Tanzania has frozen the issuance of new maize export permits for Kenyan traders. Ken Nyaga, the chairperson of the United Grain Millers Association confirmed and said the neighbouring country’s move is set to worsen the shortage of the product, which has driven prices of flour to historic highs.
“We have been unable to get maize from Tanzania since last week after the country stopped issuing export permits to traders with the cutting off of stocks from Tanzania expected to push up the cost of flour. This is also tightening the supply of the staple locally,” said Ken Nyaga, the chairperson of the United Grain Millers Association.
John Gathogo, publicity secretary of the Association of Kenya Feed Manufacturers, also said their members are unable to get stocks from Tanzania as well following the move that has seen processors cut down on production. Millers are issued with a one-off permit for grain export from Tanzania and they need to apply for a new one every time they intend to ship maize out of that country.
Source market
Tanzania has for the last two years become a key source market for maize to bridge deficits especially after the two countries mended their trade ties with the change of regime last year following the death of former President John Magufuli.
Data from the Eastern Africa Grain Council shows imports from Tanzania nearly grew five-fold last year to 469,474 tonnes from 98,000 tonnes in 2020. The development has left processors jostling for stocks that are available locally and a few imports coming in from Zambia. Tanzania restricts exports to protect its local stock following poor harvests.
According the Kenya Bureau of Standards (Kebs), the maize coming in through the Namanga border has significantly declined, confirming that imports into the country at that point is originating from Zambia.
“We have witnessed a significant decline in maize coming in from Tanzania; on average we are now getting 10 trucks from a high of 80 trucks previously,” a Kebs official at the Namanga border said.
The move leaves Zambia as the only key source market for the produce to bridge the local deficit as most stocks from Uganda also a key source is now heading to South Sudan owing to high prices in Juba. The shortage occasioned by Tanzanian ban will push up the price of maize locally to Ksh5,900 ($49.06) for a 90-kilogramme bag from Ksh5,400 ($44.91), according to millers.
