Tanzania has imposed a new measure on its grain export, following the report that it froze the issuance of new maize export permits to Kenyan grain traders.
News broke out on Wednesday that Kenyan traders were denied new maize export permits, which allow them to import the essential product from Tanzania. Several Kenyan grain millers reported that the scarcity of flour and maize resulted from this ban. Read the story here.
Following the break out of this news, Tanzania denied freezing trade permits and alluded to disregard of protocols as the reason why the maize trade between both nations had been stifled.
“Tanzania hasn’t barred issuance of permits for maize exports and it is not planning to do so. Traders should follow crop export procedures including securing crop export permits that are issued free of charge. Between August 27 and September 7, 2022, Tanzania issued maize export permits for 37,450 tons of the product” said Agriculture Minister Hussein Bashe told The Citizen on Wednesday.
New measures were also issued to Kenyan grain traders, mandating that they register their business with the country before they can be granted export permits.
The agriculture minister noted that this protocol was put in place to protect the interest of every stakeholder involved, and ensure a smoother relationship between foreign traders and local farmers.
Kenya is heavily reliant on Tanzania for its grain supply. This entire turn of events continues to take its toll on the Kenyan food economy as both maize and flour have become scarce. According to the East African Grain Council, Kenya’s demand for grains rises annually. Kenya’s imports from Tanzania from 98,000 tons in 2020 to 469,474 tons in 2021.
With the current scarcity, it is estimated that the price of maize in Kenya could go up from Sh5,400. to Sh5,900 for a 90-kilogram bag
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