Kenya Concerned by Maize Market Distortions

Kenyan farmers have reported concerns regarding the impact of a glut of maize from Uganda and Tanzania on prices for their crop. Last year’s bumper harvest has resulted in plentiful supply meaning that prices have fallen and government is unable to buy up all the maize.

The National Cereals and Produce Board (NCPB) has announced that it will only buy two million bags as a cost of $23 per bag. However, farmers are reported to have 46 million bags of maize.

 The concerns of farmers are backed up by the report of a Kenyan presidential task force that suggests that Uganda and Tanzania have distorted the Kenyan market as a result of over-exportation.

 As it stands the EAC permits free movement of maize produced in the region. While Kenya does not currently produce enough domestically to cover all its needs, Tanzanian production exceeds national demand.

The task force has recommended the addition of “tenets” to regulate the balance of trade and promote competitiveness, as well as new protocols that tackle dumping and over-importation. Their report will be submitted to President Kenyatta in order to resolve what action will be taken.