Zambia is scheduled to deliver to Kenya over 540,000 metric tonnes of White Grade A non-GMO maize.
According to details established by Taarifa Investigative Desk, Kenya’s Baita Trading Company Limited inked a supply deal with Zambia’s Food Reserve Agency (FRA).
Martin Kinoti the Director of Baita Trading Company Limited revealed that the deal was inked after two weeks of back and forth negotiations.
Zambia a major corn producer on the continent is also seeking to tap into a wider East African market.
Suresh Desai, FRA Board Chairperson said that the two sides are expected to meet and agree on the price before shipping begins.
“As far as the price goes, there is an agreed pricing mechanism which will mean that at the commencement of each tranche, the two parties.”
He said the price would be determined by prevailing regional market and pricing levels at the time of each tranche.
Kenya has suffered prolonged drought which has affected maize production in key growing regions, including the North Rift and parts of Western Kenya such as Bungoma County.
Maize is a highly consumed cereal in Kenya. Currently the local prices have shot high.
Government statistics show that Kenya has an annual maize demand of 48 million 90-kilogram bags against consumption of between 55 million and 60 million 90-kilogram bags.
Mutahi Kagwe, in charge of Kenya’s Agriculture docket said on Wednesday that millers have requested government to allow importation of 3 million tonnes of white Maize duty-free.
“Cereal Millers Association (CMA) urged the State to gazette three million metric tonnes of white maize for duty-free importation,” he said government was considering their request.
The millers argue that the move would lower maize costs, broaden sourcing options and cushion consumers against higher maize flour prices.
