Kenya Secures Extended EAC Tax Relief on Wheat and Rice Imports to Safeguard Food Security and Support Farmers

Kenya has successfully secured an extension of preferential tax rates for rice and wheat imports, a development announced by Treasury Cabinet Secretary John Mbadi during the 2025 Budget Statement. The East African Community (EAC) Council of Ministers approved the request, allowing importers to bring in wheat at a 10 percent duty rate and rice at a rate of 35 percent or 200 US dollars (approximately Sh26,000) per metric tonne—whichever is higher. The decision is set to ease pressure on food prices while continuing to protect local producers.
This move is a vital measure to ensure stability in Kenya’s food supply chain, where wheat and rice are essential staples. Despite modest gains in local wheat production, the country still imports more than three-quarters of the wheat it consumes annually. The latest Economic Survey shows that Kenya produced 312,200 tonnes of wheat in 2024, a slight increase from 309,500 tonnes the previous year, but far below 2022 levels of 368,700 tonnes. Local production accounted for just 11.89 percent of the 2.63 million tonnes of wheat stock available in the country last year.
The government’s strategy not only seeks to contain food inflation but also supports domestic farmers. Under the EAC-approved policy, millers must first purchase all available locally grown wheat before importing under the reduced duty scheme. This stipulation ensures that local growers benefit from a guaranteed market, even as traders tap into international markets to supplement supply shortfalls.
Wheat is integral to Kenyan diets and livelihoods, forming the basis of popular food items such as bread, chapatis, mandazi, and pastries. A stable and affordable wheat supply is therefore crucial not only for food security but also for the viability of the baking, retail, and hospitality sectors. The continuation of the 10 percent import duty helps traders avoid the standard 35 percent Common External Tariff, keeping costs manageable and stocks consistent.
Similarly, the extension of the rice tariff relief—35 percent or 200 US dollars per metric tonne instead of the usual 75 percent or 345 dollars—comes amid rising demand and local production constraints. This measure is expected to keep rice prices accessible for consumers and support informal traders and retailers who rely on bulk rice availability.
Beyond its fiscal implications, this tax relief deal represents an example of Kenya’s strategic engagement within the EAC to safeguard national interests. It reflects the government’s careful balancing act between market affordability, regional trade cooperation, and agricultural development.
As Kenya continues its journey toward food self-sufficiency, such measures are not just reactive fixes—they are strategic levers being pulled to protect Kenyan consumers, empower farmers, and maintain the stability of essential food markets.