The price of rice is expected to drop by 35 per cent starting February after the government abolishes the 35 per cent duty that is levied on the produce.
The Ministry of Agriculture says traders will be allowed to import at least 600,000 tonnes of the commofity duty-free between February and August next year.
“This duty waiver will cut the cost of rice by the same amount that millers pay as tax,” said Rajan Shah, chief executive officer of Capwell Industries as quoted by Business Daily.
Mr Rajan, whose company processes Pearl, said the country imports the commodity throughout the year with millers having to pay the 35 per cent duty on all imports.
Kenya imports at least 80 per cent of rice consumed locally in order to fill the huge shortfall in production.
Kenya which mainly imports the commodity from Pakistan shipped into the country 630,000 tonnes of the staple food last year valued at KES 31 billion.
The waiver of duty will come as a relief to consumers who are grappling with the high cost of food and other non-food stuff such as fuel.
Rice is the second most important staple in the Kenyan households and its consumption has been growing 10 per cent yearly and now stands at more than 400,000 tonnes, according to State data.
The State has also issued a waiver on maize imports as it seeks to lower the cost of living occasioned by high prices of food commodities.
Read also; Kenya Set Import 1.5 million Metric Tons of Duty-Free Maize
