The Kenya and UK governments have formally signed a trade agreement that will see Kenyan exporters of agricultural products including flowers and fresh vegetables continue to access the UK market under a duty-free, quota-free arrangement similar to the arrangement that has been in place with the UK’s membership of the European Union.
Operators in Turkana, Mandera, Samburu, Isiolo, Marsabit and Wajir counties have seen the availability of maize flour significantly reduce by 83% due to the invasion of locusts on the farmlands. The supply of beans has also taken a large hit with estimates at 80% according to a survey by the Kenya Cash Consortium (KCC) in partnership with Oxfam and Concern Worldwide as reported in the Business Daily.
As Brexit is slated for the end of this year, EAC members will have up to five years to join the new UK-Kenya Trade Agreement that is due to be signed. The agreement will give Kenya access to the UK market with products such as tea, coffee, vegetables, and flowers while the UK will target the Kenya market for vehicles and pharmaceuticals that could be worth over $1 billion as reported in The Kenyan Wall Street publication.
As the issue of aflatoxins in the region continues, Kenya will likely see less grain coming into the country from Uganda as tougher requirements will be implemented over the next couple of months.
The current weak demand for maize flour has seen the price fall compared to the past two years as a result of lower maize grain prices in the Kenyan market with a 2kg packet retailing at KES 103 for Soko, KES 108 for Pembe, and KES 110 for Jogoo compared to the KES 115 price that was retailing previously in September.
The Middle East remains the leading destination for Uganda’s exports bringing it to three months in a row this year with an estimated 53.3% of the country’s exports going to the Middle East followed by other members of the East African Community.
Kenya’s Port Authority has stated that it will not increase the free storage period for cargo coming into the country, apart from those that are destined to further East African countries, after a 90 day period was granted in May. The KPA authorized an extension for goods in transit but declined to include local Kenyan importers who now have a week to clear their goods or risk penalties from authorities.
Kenyan wheat farmers have been demanding better prices from millers due to the high cost of production and that KES 3,500 per 90kg bag would allow them to just break-even as millers in the country are paying KES 3,250 per 90kg bag as reported by Business Daily.
Kenya plans to spend over KES 100 million on upgrading selected warehouses that will be used under the new Warehouse Receipting System (WRS) as the country prepares to launch a national commodities exchange.
Maize Price Fall Sees Lower Price For Maize Flour
The price of maize in Kenya has seen a fall to KES 2,800 per 90 kg bag following on from the start of the harvest in the South Rift area as this has been the first time prices have been indicated below the KES 3,000 per 90 kg mark for most of the year.