Lead image for Millers warn of looming higher prices of wheat products.
Wheat millers have warned of possible increases in the prices of flour, bread, chapatis, and other wheat-based products following the government's delayed approval of imports to bridge a looming supply shortfall.
The Cereal Millers Association (CMA) claimed delays in the release of a critical government permit document known as C60.
The C60 allows approved millers to bring in specified amounts of wheat under the duty remission scheme to process into flour for local sale. Millers must first buy local wheat before receiving these permits.
The millers say the delays are occurring at a time when global wheat prices and shipping costs are rising, increasing the risk that higher costs will be passed on to consumers.
Kenya relies heavily on imports to meet its wheat requirements, with about 95 per cent of the country's consumption sourced from international markets and only five per cent produced locally.
Under the existing wheat import framework, millers must first purchase available locally produced wheat before being allocated import permits under the C60 system.
CMA members have consequently raised the price they are offering for locally produced wheat to Sh5,100 per 90kg bag, up from Sh4,750, as they seek to mop up domestic supplies before supplementing them with imports.
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