Kenya's Wheat Shortage Looms as Import Delays Threaten Price Hikes

Kenya's wheat millers are warning of potential price hikes for flour, bread, and other wheat-based products due to supply disruptions caused by delayed import approvals.

The Cereal Millers Association (CMA) has expressed concern over the delays in releasing permits that allow approved millers to import wheat under a duty remission scheme. This could lead to shortages as global wheat prices and shipping costs continue to rise.

'Every additional day of delay adds demurrage, storage and financing costs which do not benefit the farmer, the miller or the consumer,' said CMA Chief Executive Paloma Fernandes.

The association is urging authorities to release the pending import approvals to avert a potential shortage and contain pressure on prices. Local wheat production accounts for only about 5 percent of domestic demand, with Kenya relying heavily on imports to meet its needs.