Wed Sep 18 04:10:44 UTC 2024: ## Kenya’s Cereal Prices Surge Amidst New Import Levy
**Nairobi, Kenya** – The average retail price of wheat in Kenya skyrocketed by 10.9% in August, reaching Sh106.32 per kilogramme, according to a report by the Alliance for a Green Revolution in Africa (AGRA). This sharp increase, alongside a 9.9% rise in maize prices, has been attributed in part to a new 2% levy imposed by the Kenyan government on imported cereals.
The levy, implemented in August by the Agriculture and Food Authority (AFA), aims to support local food producers by making imported cereals less competitive. However, the move has sparked concerns from traders who argue it violates regional trade agreements and will ultimately hurt Kenyan farmers.
The Shippers Council of East Africa CEO Agayo Ogambi voiced concerns that the levy will make Kenyan produce uncompetitive in the region, impacting both consumers and exporters.
The report also noted a marginal 0.82% increase in the price of rice, reaching Sh154.35 per kilogramme.
While the government intends to use the levy to bolster local agricultural production, the impact on consumer prices and the broader regional trade landscape remains to be seen.
First Piper 