Court approves phased importation of duty-free rice to address supply deficit

Court approves phased importation of duty-free rice to address supply deficit
Gavel. PHOTO/iStock
In Summary

Kenya currently produces only about 20 per cent of its annual rice requirements against a local demand of roughly 80 per cent. This translates into an estimated annual deficit of about 800,000 tonnes, with total national demand exceeding one million metric tonnes.

The High Court sitting in Kirinyaga has allowed the phased importation of duty-free rice to address a persistent deficit in local rice production, while directing the government to prioritise the purchase of locally grown rice to protect farmers’ livelihoods.

In a ruling delivered by Justice Edward Muriithi, the court authorised the Ministry of Agriculture and Livestock Development to import rice in three equal tranches of 85,000 metric tonnes of Grade 1 rice, beginning on March 1, April 1 and May 1, respectively.

Justice Muriithi said the court was required to strike a careful balance between competing constitutional rights after considering affidavits and submissions filed by the parties.

“After extensive assessment of the affidavits and submissions filed, there was a confluence of rights in the petition that had to be balanced and determined,” the judge said.

He noted that food security is a matter of public interest and national security, while also recognising the rights of farmers and consumers.

According to the court, farmers are entitled to produce and sell their crops, while consumers have a right to access food that is available, affordable and of good quality.

“It is reasonable for the State to avert a calamity whenever there is local shortage,” Justice Muriithi ruled.

“The overall deficit in rice demand and supply, which is not denied and only challenged to the extent of the deficit, must be addressed by allowing the importation of duty-free rice — but only after effective mop-up of locally produced rice.”

To safeguard local farmers, the court directed the Ministry of Agriculture to conduct a comprehensive mop-up of all locally produced rice within 30 days.

The judge ordered that the exercise should not restrict participation to farmers, traders or businesses contracted by the Kenya National Trading Corporation (KNTC).

“The respondent must undertake within 30 days a mop-up exercise of locally produced rice from all rice-growing regions and from individuals, cooperatives and businesses without restricting those who are not trading with KNTC,” he said.

Last year, the government carried out a similar mop-up programme, purchasing rice at farm-gate prices, but the exercise was limited to farmers belonging to cooperatives or organised farm groups.

The court found that approach exclusionary and ordered a more inclusive process.

Justice Muriithi further directed that rice collected through the mop-up exercise should be sold at wholesale prices guided by prevailing market indices, rather than at retail prices set by sellers.

While approving the importation of the remaining 254,000 metric tonnes of duty-free rice to fill the supply gap, the court cautioned against flooding the market.

“The importation must be structured to avoid dumping large stocks of rice that could cause abrupt and drastic decreases in rice prices and farmers’ incomes,” the judge ruled.

Kenya currently produces only about 20 per cent of its annual rice requirements against a local demand of roughly 80 per cent.

This translates into an estimated annual deficit of about 800,000 tonnes, with total national demand exceeding one million metric tonnes, underscoring the government’s reliance on imports to stabilise supply.

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