The Cabinet Secretary for Agriculture and Livestock Development Hon. Mithika Linturi appeared before the Senate today to answer to questions concerning duty free importation of food commodities. Below is an excerpt of the proceedings.

𝐒𝐞𝐧. 𝐌𝐨𝐡𝐚𝐦𝐞𝐝 𝐂𝐡𝐮𝐭𝐞: Could the Cabinet Secretary disclose the food commodities being imported duty-free, stating the approved packaging and container sizes?

𝐂𝐒 𝐌𝐢𝐭𝐡𝐢𝐤𝐚 𝐋𝐢𝐧𝐭𝐮𝐫𝐢: The Cabinet Secretary for National Treasury and Economic Planning authorized importation of white shelled maize 1,400,000 metric tonnes in packaging of 90 kg bag, white milled rice 1,100,000 MT in packaging of 90 kg bag, and sugar 280,000 MT in packages of 50 kg bag.

𝐒𝐞𝐧. 𝐌𝐨𝐡𝐚𝐦𝐞𝐝 𝐂𝐡𝐮𝐭𝐞: Which companies have applied for prequalification to import food commodities duty-free from September, 2022 to date, and how many of these have been issued with permits to import?

𝐂𝐒 𝐌𝐢𝐭𝐡𝐢𝐤𝐚 𝐋𝐢𝐧𝐭𝐮𝐫𝐢: A total of 461 applications were received out of which 186 did not meet the prequalification criteria while 275 applicants were responsive and hence given the opportunity to participate in the importation of food commodities. The Ministry issued allocation letters to 129 companies to import rice, 127 companies to import maize and 44 companies to import sugar. Out of these, 72 companies have processed permits to import rice while 18 companies have processed permit for maize importation and similarly 44 companies have processed permits to import sugar.

𝐒𝐞𝐧. 𝐌𝐨𝐡𝐚𝐦𝐞𝐝 𝐂𝐡𝐮𝐭𝐞: How many companies have so far imported goods and what actions will the Ministry take against the prequalified companies which have not complied with the terms of engagement?

𝐂𝐒 𝐌𝐢𝐭𝐡𝐢𝐤𝐚 𝐋𝐢𝐧𝐭𝐮𝐫𝐢: As at 16th June 2023, 68 companies had imported 520,426 MT of white milled rice while 13 companies had imported 234,981 MT of white maize. The Ministry held a meeting with pre-qualified importers of maize and rice on 25th April 2023 to review and get update on the status of importation of food commodities.

During the meeting, the importers raised the challenges they were facing in the importation which included appreciation of the dollar against Kenya Shilling, high international prices and off-taker guarantees required by banks to issues letters of credit.

It was resolved that importers who were unable to provide evidence of importation process such as bills of lading, surrender their import allocation and their permits were to be terminated.

𝐒𝐞𝐧. 𝐌𝐨𝐡𝐚𝐦𝐞𝐝 𝐂𝐡𝐮𝐭𝐞: The CS has stated that a 50 kg of rice is costing Kshs. 1800 while two weeks ago the CS for East African Community, Arid and Semi-Arid Lands and Regional Development told this house that while buying relief supplies, a 50 kg bag of rice costs Kshs. 7500. Why can’t the two Cabinet Secretaries talk and come up with one price?

𝐂𝐒 𝐌𝐢𝐭𝐡𝐢𝐤𝐚 𝐋𝐢𝐧𝐭𝐮𝐫𝐢: Allow me to deal with the issues that I am properly aware of, that are under my docket. My Ministry was responsible for ensuring enough supply of the food commodities in the market to cause general reduction of food prices through the application of the normal forces of demand and supply. The Ministry did not spend any money from the public coffers to have the food imported. I am not able to control the retail prices in the market. It is a choice of a willing seller willing buyer.

𝐒𝐞𝐧. 𝐉𝐚𝐜𝐤𝐬𝐨𝐧 𝐌𝐚𝐧𝐝𝐚𝐠𝐨: I rise to seek clarification from the CS. When he says it is a choice, is the Cabinet Secretary saying that there is a special population that the CS for East African Community, Arid and Semi-Arid Lands and Regional Development she is buying for rice at Kshs.7500 and that he has a special population that he buys rice for at Kshs. 1800?

𝐂𝐒 𝐌𝐢𝐭𝐡𝐢𝐤𝐚 𝐋𝐢𝐧𝐭𝐮𝐫𝐢: I was just giving an analogy that there is rice that is cheaper out there in the market.

𝐒𝐞𝐧: 𝐖𝐢𝐥𝐥𝐢𝐚𝐦 𝐂𝐡𝐞𝐩𝐭𝐮𝐦𝐨: Some of the suppliers that have been licensed to import maize, rice or sugar do not have the capacity to import the commodities hence frustrating the Ministry’s intentions to reduce the food prices. Isn’t it good to have a prequalification condition in order to select the companies that are able to deliver before you clear them to import? 

𝐂𝐒 𝐌𝐢𝐭𝐡𝐢𝐤𝐚 𝐋𝐢𝐧𝐭𝐮𝐫𝐢: Moving forward it’s my desire to ensure that we are able to feed ourselves hence avoid relying on imports. The decision to import happened at a time when we didn’t have food and since it was not a procurement process where the Ministry was spending any money we were not able to bid the importers by way of having serious guarantees to sign. The dollar fluctuation also was a challenge to the importers. However, they breached the general understanding and in future we will be careful not to issue them with import licenses.

𝐒𝐞𝐧. 𝐀𝐚𝐫𝐨𝐧 𝐂𝐡𝐞𝐫𝐮𝐢𝐲𝐨𝐭: We passed the Tea Amendment Bill in 2020, subsequently the people that we had disputes with moved to Court. East African Tea Trade, KTDA and the likes. With a new Administration in Office and more specifically the Directors of KTDA who are in office courtesy of that Bill have refused to withdraw the cases that would allow the KTDA managed Tea Factories to pay only 1.5% of their gross as management fee because they want to continue to benefit as it is. I want an assurance that from the CS. When do you intend to crack the whip as the CS in charge of that Ministry so that benefits can be given to the farmers?

𝐂𝐒 𝐌𝐢𝐭𝐡𝐢𝐤𝐚 𝐋𝐢𝐧𝐭𝐮𝐫𝐢: I cannot agree more with the Majority Leader. I will invite the him we come up with a proper way of implementing the Tea Amendment Bill, 2020. I take up that challenge to do whatever is required to be done.

𝐒𝐞𝐧. 𝐉𝐚𝐜𝐤𝐬𝐨𝐧 𝐌𝐚𝐧𝐝𝐚𝐠𝐨: how many metric tonnes have been imported to the country duty free and will the duty free importation end before the next harvesting season? Are you aware of the tea harvesting machines crisis in North and South Rift and what is your reaction?

𝐂𝐒 𝐌𝐢𝐭𝐡𝐢𝐤𝐚 𝐋𝐢𝐧𝐭𝐮𝐫𝐢: I appreciate the work done by the people given jobs in the tea plantations and the concerns of leaders on the unemployment that is likely to be occasioned by the introduction of the use of plucking machines. We must appreciate science and technology as innovation is important in the development of this country. We cannot run away from it since we want to increase efficiency and save time and keep the required standards. We can offer the workers alternative sources of employment.

The interests of the farmers are very close to my heart and I will not allow importations that are likely to mess farmers in the Country. Up to now we have imported 277,444 MT of Maize.

𝐒𝐞𝐧. 𝐉𝐚𝐜𝐤𝐬𝐨𝐧 𝐌𝐚𝐧𝐝𝐚𝐠𝐨: Has the sugar price at the consumer level dropped since the importation of duty free sugar?

𝐂𝐒 𝐌𝐢𝐭𝐡𝐢𝐤𝐚 𝐋𝐢𝐧𝐭𝐮𝐫𝐢: I sought cabinet approval on 25th May 2023 to import sugar outside the COMESA countries since the sugar imported earlier was not enough. I expect inflows of sugar by the 2nd week of July. The prices have been high due to shortage of the sugar imported in the country and the current high dollar rate.

𝐒𝐞𝐧. 𝐌𝐨𝐡𝐚𝐦𝐞𝐝 𝐂𝐡𝐮𝐭𝐞: what are you going to do to incorporate the importation of goods between your Ministry and that of Investments Trade and Industry to cushion KNTC from suffering losses? Will I be wrong to ask this Honourable house to initiate an inquire to investigate your Ministry and the Ministry of Investments Trade and Industry?

𝐂𝐒 𝐌𝐢𝐭𝐡𝐢𝐤𝐚 𝐋𝐢𝐧𝐭𝐮𝐫𝐢: The issue of giving permits illegally is a rumour. All importation licenses are applied for online. I have not given permit to KNTC to bring in sugar.