CS Kagwe warns of looming crisis if rice importation ban is upheld

In his affidavit, CS Kagwe argued that blocking the duty-free imports will see household consumers and critical public institutions facing severe shortages, spiking food prices and further crippling the cost-of-living crisis.

“The importation is necessary to stabilize prices and avert a potential food crisis,” Kagwe said.

CS Kagwe further stated that Kenya’s annual demand for rice stands at about 1.3 million (MT) against a domestic production of just 20pc, leaving a deficit of more than 80pc, roughly 1 million MT, that is bridged mainly through imports.

He intimated that the current retail price of Grade 1 milled white rice has already surged to between Ksh.190 and Ksh.220 per kilogram, a steep rise from last year’s duty-free period average of Ksh.150 per kilogram.

Likewise, he added that projections show that Kenya’s rice consumption per capita in 2025 is expected to reach 29 kilograms, with the population estimated at 54.79 million.

This translates to a national requirement of about 1.5 million MT of rice for the year, or roughly 125,000 MT per month, meaning that Kenya will need about 625,000 MT between July and December 2025 alone.

The CS added that the Kenya National Trading Corporation (KNTC) has signed contracts with the Mwea Rice Growers Cooperative to mop up local stocks for onward distribution to government institutions.

This will however be impeded by the minimal available stocks from farmers which currently stand at only 20,000 (50kg) bags, against a projected demand of more than 350,000 bags for key government institutions.

He noted that the Ministry of Education (MoE) will need 130,000 bags (Komboka), special programmes will need 90,000 bags (Komboka), the State Department for Correctional Services will need 60,000 bags (Sindano) and the Kenya Defence Forces, 40,000 bags (SPR).

Other agencies such as the Administration Police (AP), General Service Unit (GSU), National Youth Service (NYS), and Kenya Police Service (KPS) also have substantial rice needs.

The Kerugoya court is set to give directions tomorrow, Friday, August 15.

The High Court temporarily stopped the duty-free importation on August 11 after an application was filed seeking to block the move.

Farmers have heavily opposed the move, citing that it would affect the local produce that is stored at Mwea Rice Growers Multi-Purpose Cooperative Society (MRGM) stores.