Kenya's Wheat Flour Prices Threatened by Delays in Import Approvals

Kenya's wheat flour prices are under threat due to delays in the release of C60 import approvals, warns the Cereal Millers Association (CMA). This has led to increased demurrage, storage, and financing costs for millers.

The association says that continued delays in approvals prevent imported wheat consignments from clearing normally. Under Kenya's existing grain framework, millers must exhaust available domestic grain through the Local Wheat Purchase Programme before securing import clearances.

CMA members emphasized that they have fully honored this mandate by agreeing to purchase local wheat at KSh 5,100 per 90-kilogram bag, up from the previous benchmark of KSh 4,750. They contribute approximately KSh 2 billion annually in Agriculture and Food Authority (AFA) levies to support local growers.

The Agricultural and Food Authority estimates Kenya's annual wheat requirement at between 2.2 million and 2.4 million tonnes. About 95% of this demand is met through imports, with local production satisfying only 5%. International wheat prices surged 5.8% in July amid escalating conflict and logistics bottlenecks across Black Sea shipping lanes.

CMA Chief Executive Officer Paloma Fernandes urged the AFA and relevant government ministries to expedite the release of pending import permits and prioritize consignments already sitting at Mombasa port to ensure processing mills can maintain continuous, uninterrupted flour output.