The cost of living could go up if the findings of a new report are anything to by.
The Famine Early Warning System Network says the price of a 90-kilogramme bag of maize is likely to increase to Sh3,900 by May.
That means the retail price of a two-kilo packet of maize flour will also shoot beyond the current price of Sh120. FEWS NET said wholesale prices of maize are projected to exceed 27 per cent above average by May.
It said the price of a 90-kg bag will retail at between Sh3,400 and Sh3,900. It currently goes for between Sh3,000 and Sh3,400.
FEWS NET said imports are expected to be 75 per cent above average to cover the anticipated rise in demand.
“Imports from Ethiopia are expected to continue to rise, and there are expected imports from non-traditional overseas sources such as South Africa, Zambia, Mexico, and Ukraine,” the report stated.
In May last year, the government introduced a Sh6 billion subsidy for imported maize. The move led to a reduction in the cost per bag to Sh2,300, thereby cutting flour prices to Sh90 for a 2kg packet.
The end of the subsidy has caused a shortage that has pushed the price of unga to a high of Sh144 for each 2kg packet. The subsidy ended last month.
In regions like Turkana, FEWS NET said the average maize prices are expected to be 12 –14 per cent above average due to continued supply shortfalls.
But prices could drop in February before increasing to eight to 10 per cent above average as household demands and market supplies dwindle.
In Marsabit, the prices are projected to remain relatively stable at between six to seven per cent above average through to May.
The forecast predicted an aflatoxin outbreak in the southeastern agricultural areas like Kitui, which are highly susceptible to infestations.
The report cited inadequate on-farm storage facilities and limited preventive measures that could cause aflatoxin poisoning in maize.
Last year, Agriculture CS Willy Bett warned that the country’s annual maize yield could drop by 20-25 per cent due to the invasion and the continued spread of the fall armyworm. The invasive pest invaded more farms in new regions across the country.