Millers have stated plans by Agriculture Cupboard secretary Peter Munya to droop all levies imposed on imported maize in pursuit of decrease price of the staple will solely minimize the worth of flour by Sh2 for a two-kilo packet.
United Grain Millers Affiliation (UGMA), an umbrella physique of small and medium-scale millers, says the transfer is so insignificant that it’s going to not have any affect on customers.
Talking on the Namanga border on Tuesday, Mr Munya stated the federal government will gazette a directive by finish of Thursday that can droop the levies imposed on imported maize in a bid to decrease the price of flour that’s now retailing at Sh210 for a two-kilo packet.
Imported maize is levied Sh100 for a 90-kilo bag, with a single bag giving 36 packets of two kilos when milled, which means that suspending the levies will solely minimize the price by Sh2.7.
The federal government by means of totally different businesses fees levies that comprise the Certificates of Conformity payment levied by the Kenya Bureau of Requirements, the phytosanitary payment charged by the Kenya Well being Inspectorate Service, and the Import Declaration Payment imposed by the Kenya Income Authority.
“The transfer is so insignificant, we want a critical authorities intervention on making the maize obtainable with a view to minimize down considerably on the price of flour,” stated UGMA chairman Ken Nyaga.
Mr Munya stated the present levies charged on maize have made the grain costly when it will get to the nation.
“We’ve got determined to droop all levies imposed on imported maize by 90 days that’s coming to Kenya from any border put up and from July 1, no fees will probably be levied on maize,” stated Mr Munya.
Mr Nyaga stated the federal government ought to open direct talks with international locations like Tanzania, Zambia, and Malawi, that are presently the supply marketplace for maize imports, to abolish export permits and different border-related charges which have made the grain costly.
“If we are able to have direct authorities talks to scrap export allow levy, then the worth of maize will come down and it will affect on the price of the ultimate product,” he stated.
The Tanzanian authorities final week doubled the price of export permits by 93 %. The authorities elevated the price of buying an export allow from Sh27,000 per truck beforehand to Sh52,000 presently based on border officers.