Kenyan traders will continue importing wheat and rice at preferential tax rates after the East African Community (EAC) Council of Ministers approved an extension of the duty remission scheme, Treasury Cabinet Secretary John Mbadi has announced.
The arrangement allows millers to import wheat at a reduced tariff of 10 per cent—significantly lower than the standard 35 per cent Common External Tariff (CET) imposed by the EAC on goods from outside the seven-member bloc.
“Mindful of wheat farmers in Kenya, EAC ministers agreed on duty remission for wheat at a rate of 10 per cent instead of the CET rate of 35 per cent—provided that millers intending to import wheat under the duty remission must first purchase locally produced wheat,” Mbadi said during his 2025 Budget Statement delivered on Thursday afternoon.
The government said the 10 per cent import duty has been instrumental in ensuring the country maintains adequate wheat reserves while also shielding domestic farmers from market distortions.
Kenya depends heavily on imports to meet over three-quarters of its wheat consumption, with the grain being a staple in household foods such as bread, chapatis, and cakes.
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In 2024, wheat production rose slightly to 312,200 tonnes from 309,500 tonnes the previous year, though it still fell short of earlier years—368,700 tonnes in 2022, 349,100 in 2021, and 405,100 in 2020—according to the Economic Survey 2025.
Locally grown wheat accounted for just 11.89 per cent of the 2.63 million tonnes of wheat available in the country last year.
Kenya has also sought and received approval to continue importing rice at reduced rates to manage local demand. “To meet local demand for rice, Kenya was allowed to extend the stay of application on the EAC Common External Tariff and import rice at a rate of 35 per cent or $200 (approximately Sh26,000) per metric tonne—whichever is higher—instead of the CET rate of 75 per cent or $345 (about Sh44,850) per metric tonne,” Mbadi added.
The EAC CET applies to all imports coming from outside the bloc, which includes Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan, and the Democratic Republic of the Congo.
