Kenya secures EAC extension for duty-relief on wheat, rice imports

KENYA – Kenya has secured a vital extension from the East African Community (EAC) Council of Ministers allowing the continued importation of wheat and rice at reduced duty rates.

The announcement was made by Treasury Cabinet Secretary John Mbadi during the 2025/26 Budget Statement, outlining government strategies to sustain food affordability while promoting domestic grain production.

The measure permits wheat to be imported at a 10% tariff, significantly lower than the EAC’s Common External Tariff (CET) of 35%. The Treasury has also applied for an extension of the reduced import duty on rice, allowing traders to import at a rate of 35% or US$ 200 per metric tonne, whichever is higher.

The CET rate for rice stands at 75% or US$ 345 per metric tonne.

The government has, however, tightened import conditions. Millers must now prioritise the purchase of locally produced wheat before accessing imported grain under the lower tariff regime.

This stipulation aims to protect domestic growers and enhance local market participation while ensuring the availability of wheat for milling and food processing.

Wheat continues to be a key staple in Kenyan diets, forming the base of commonly consumed foods such as bread, chapati, and noodles. However, local production remains far below demand.

According to the 2025 Economic Survey, wheat production reached 312,200 tonnes in 2024, up from 309,500 tonnes in 2023, but still below 2022’s 368,700 tonnes. Domestic wheat accounts for only 11.89% of the national requirement, forcing Kenya to rely on imports to bridge the gap.

The Treasury’s rice import duty request comes amid increasing domestic consumption and volatile regional supply trends.

According to Kenya’s National Rice Development Strategy (NRDS), local rice production stands at just 180,000 tonnes annually, against a consumption level exceeding 700,000 tonnes.

These tariff adjustments aim to stabilise local grain prices, ensure sufficient supply, and reduce the burden on consumers already grappling with rising food inflation.

By balancing support for domestic farmers with the needs of millers and processors, the government is positioning the country to manage both supply risks and production incentives. For importers, the move offers temporary cost relief, while for farmers, it affirms the state’s commitment to local procurement and agricultural development.

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