The expected rise in import duty did not happen with Treasury Cabinet Secretary Ukur Yatani retaining the tax at 10 percent.
The Agriculture ministry data indicates that wheat imports rose to 8.1 million bags in a similar period last year from 7.1 million bags in the review period.
The enhanced imports imply that the country will have sufficient grain stocks for the rest of the year.
Wheat imports to Kenya increased by 12 percent in the first five months of the year as millers amassed stocks, spooked by fears of potential tax raises in the 2021/22 national budget that was read in June.
The expected rise in import duty did not happen with Treasury Cabinet Secretary Ukur Yatani retaining the tax at 10 percent.
The Agriculture ministry data indicates that wheat imports rose to 8.1 million bags in a similar period last year from 7.1 million bags in the review period.
The enhanced imports imply that the country will have sufficient grain stocks for the rest of the year.
This will help check the higher cost of wheat flour in the market that has been rising in recent days.
Most of the wheat consumed in Kenya is imported from Argentina, the US, Ukraine and Russia, as Kenya remains a deficit country in terms of production.
Wheat imports had dropped since September 2020 due to the reduced global supplies, especially from Russia and Ukraine.
The countries encouraged their domestic consumption as part of Covid-19 pandemic social protection.
Russia imposed higher export duties, leading to costly imports for most wheat.
Russia introduced a 25 euro (Sh3,225) duty per tonne of export wheat to discourage shipping out of the commodity to protect its local market.
The wheat balance sheet from the Agriculture ministry projected to the end of August 2021 shows a surplus of 4.3 million bags due to high imports.
The country relies on importation to sustain the two million bags consumed monthly with the estimated harvest from the long rains standing at three million bags by end of this month.
The new Russian tax added pressure on the already high cost of wheat that has seen the flour price rise in recent weeks.
Wheat farmers received a major boost after the government set the minimum price of the produce at Sh3,700 for a 90-kilo bag against millers’ demand to buy the grain at Sh3,200.
Agriculture Cabinet secretary Peter Munya said millers agreed to pay Sh3,700 for grade one of wheat and Sh3,600 for the second grade after a meeting that farmers also attended last month in Nairobi.
The farmers were demanding Sh4,000 per bag but their request was not granted with the ministry reaching a consensus of Sh3,700.
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