Kenya is poised for a clash with its East African Community (EAC) partners following the introduction of a new import levy on cereals.

The Agriculture and Food Authority (AFA) has directed importers and exporters to comply with the new guidelines starting July 1.

The directive imposes a two percent tax on cereal imports and a 0.3 percent tax on exports, potentially viewed as a non-tariff barrier affecting regional trade. EAC protocols allow member states to trade freely without imposing duties on imports or exports.

Kenya, which imports more cereals than any other regional country to address significant deficits, particularly in maize and beans, relies heavily on Tanzania and Uganda. The new levy is expected to raise consumer costs.

"Under Section 40 of the Crops Act, the Cabinet Secretary is vested with powers to make regulations for better carrying into effect the provisions of the Act in consultation with the Authority and the County Governments," said AFA Director General Bruno Munyuri.

"Pursuant to these regulations, the Authority through the Food Crops Directorate hereby notifies all food crops importers and exporters that starting July 1, 2024, the imposition of levies will commence as provided for in regulation 37 sub regulations (1) to (8) of The Crops (Food Crops) Regulations, 2019."

This move comes as Tanzania has already imposed a non-tariff barrier on grain exports, significantly affecting imports to Kenya. Tanzanian restrictions require exporters to Kenya to apply for export certificates.

As a result, Kenya's maize imports from Tanzania declined by 41.78 percent to 412,755 tonnes in 2022/2023, from 708,978 tonnes in 2021/2022, according to a USDA report. Conversely, imports from Uganda increased to 34,590 tonnes, up from 2,629 tonnes.

Under the EAC Common External Tariff, maize imports from outside the region attract a 50 percent duty.