Kenya to import 500,000 mt duty free white rice by end-December, boosting global rice trade

The Republic of Kenya has allowed 500,000 mt of rice imports with zero duty until Dec. 31, boosting demand primarily for India and Pakistan rice, sources said on July 30.

The fresh demand is likely to boost exports and set firm sentiments in Indian local markets while providing an opportunity for Pakistani sellers to trade the new crop that will hit the market by the end of August to September, according to sources.

India 5% white rice was assessed at $374/mt FOB July 30, up by $6 day over day, amid fresh bids heard from Kenya.

In an official government notification released July 28, Kenya will be importing duty-free rice through a quota of 500,000 mt of Grade I milled white rice.

Prior to this, Kenya charged a 35% import duty on Pakistani rice and $495/mt fixed for valuation and $173/mt import duty on Indian rice.

Indian exporters who were charged a higher duty compared to Pakistan were elated with the news.

"This is good news for India and buyers would start giving orders in 7-14 days," a Dubai-based trader said, also citing that out of 500,000 mt quota, India's share is likely to be around 60%-70%.

India has exported 120,352 mt of non-basmati rice to Kenya in the first five months of 2025, up by 22,860 mt from the previous year in the same period, according to India's Agricultural & Processed Food Products Export Development Authority.

At the same time, Pakistani exporters also mirrored similar sentiments.

"It is a good chance for Pakistan, and we may be able to cover above 100,000 mt contracts easily, considering the presence of numerous Pakistani exporters' offices in Kenya," a Karachi-based exporter said. "We have both old stocks and an upcoming new rice crop that will soon be available in the market. As of today, I am hearing increasing forward bookings for raw rice deliveries in August, September, and October in the local market."

Other Pakistani rice sellers also suggested the possibility of securing over 50% of the contracts with Kenya out of the total 500,000 mt that Kenya has made duty-free until the end of this year.

Kenya's rice imports from Pakistan surged to 252,244 mt in 2024, marking a 143% year over year increase, according to data from S&P Global Energy. This significant increase has positioned Pakistan as the largest exporter of rice to Kenya.

A Karachi-based trader added that pricing was a critical factor following this opportunity. "Pakistani exporters will now ship to their own offices, as price is a critical factor. Container freight costs from Karachi are approximately $50/mt, while vessel freight is around $35/mt. Since this is Pakistan's backyard market, I anticipate that at least 300,000 mt will find its way there."

Platts, part of Energy, assessed Pakistani 5% WR at $384/mt FOB, down by $185/mt year over year, following increased international competition after India's re-entry in the market last year.

While India and Pakistan are preferred origins for Kenyan rice imports, a Vietnam-based rice trader also said that Kenya might be an opportunity for Vietnam if the prices are right; however, currently, Thailand, Pakistan and Myanmar WR prices are lower, also adding that container freight is also an issue.

Platts assessed Vietnamese WR 5% at $387/mt FOB July 30, up $13 week over week.

Amid tepid global demand for WR, Kenya's rice import quota is expected to support prices and boost global trade.