Tanzania to sell 10,000 tonnes of maize to Kenya

DAR ES SALAAM, Sept 9 (Reuters) – Tanzania said on Friday it had
agreed to sell 10,000 tonnes of maize to Kenya immediately from
government reserves and offered to export more food to its drought-hit
neighbour in the coming weeks.

The decision was reached following talks between the leaders of the
two countries in the Kenyan capital, Nairobi, on Friday, the Tanzanian
president’s office said in a statement.

“Presidents (Jakaya) Kikwete of Tanzania and Mwai Kibaki of Kenya …
have agreed to authorise food exports between the two countries
through official channels to curb rampant food smuggling that has been
taking place for many years,” it said.

“A Kenyan delegation is expected to arrive in the country next week
with their needs assessment for talks with Tanzanian officials on
further food sales,” the statement said.

Tanzania announced in May it had halted maize exports to curb rising
prices of staple goods that have led to spiralling inflation at home.

The government followed up the ban by halting sugar exports this week
as smugglers ferry the sweetener illegally across the border to
neighbouring countries where they fetch higher prices.

Higher food and fuel prices have driven Kenya’s inflation rate higher
for 10 months in a row. It hit 16.67 percent in August. In Tanzania, a
similar trend pushed its headline inflation rate to 13 percent in
July.