Rice, sugar, milk top Kenya’s Sh573m uncaptured regional imports

Rice, sugar and milk were the most commonly traded commodities that made their way into Kenya from neighboring countries through unofficial channels during the year ending June 2025, according to a survey by the Kenya National Bureau of Statistics (KNBS). These three goods represented more than a quarter of the Sh573 million worth of such items smuggled into the country, potentially circumventing tax obligations and official monitoring.

The informal imports were driven by supply constraints and robust domestic demand, particularly for the three food staples. KNBS Director-General Macdonald Obudho emphasized that such cross-border trade played a crucial role in stabilizing Kenya's macroeconomy and ensuring food security, particularly during times of drought or reduced production.

The surge in informal sugar imports, driven by a rice shortage and soaring sugar prices, revealed the market distortions that plagued the sector. The Kenya Sugar Board warned that unregulated trade could erode local producers, distort prices and deprive the government of revenue. Somalia was the primary source of informal rice, sugar and milk imports, with Tanzania and Ethiopia also contributing to the cross-border trade.