• A 2kg packet of maize flour is currently selling between Sh117 to Sh123
• State agrees to sell maize to millers at Sh1,600 and Sh1, 400 for production of flour and animal feeds respectively
Image: JOSEPH NDUNDA
The government is planning to release more than two million bags of maize to millers to tame the rising price of flour.
A 2kg packet of maize flour is currently selling at between Sh117 and Sh123.
The Cabinet has agreed to sell maize to millers at Sh1,600 per 90kg bag to increase flour production. Millers will also buy a 90kg bag for production of animal feeds at Sh1,400.
The maize is from the 2018-19 harvest. Prices in the market range from Sh2,800 to Sh3,400 per 90kg bag.
Agriculture CS Mwangi Kiunjuri met with officials from the Strategic Food Reserve and the National Cereals and Produce Board to look into ways of controlling the increasing prices.
SFR chairman Noah Wekesa said the board will be meeting on Saturday to make a resolution on the maize situation.
Kenyans consume 4.2 million bags of maize per month. There are only 4.1 million bags at NCPB stores.
Small-scale millers under the United Grain Millers Association on Tuesday said there was a serious shortage of maize in the market. The association's chairman Peter Kuguru said some millers have closed shop due to low supply.
“The government should consider releasing maize from the National Cereals and Produce Board and the Strategic Food Reserve to millers at Sh2,500 per 90kg bag,” Kuguru said.
He said trans-regional borders should be opened to allow those holding maize for speculation to release the commodity.
“The government should also intervene to get duty and tax waiver to the milers’ association to import maize,” Kuguru said.
A source who did not want to be named said the government is likely to sell to millers at Sh3,000 to trigger the release of maize held by farmers.
He said the government should release maize to millers immediately to stabilise the price of flour to ensure it does not rise to a high of Sh144 as was the case in 2017.
“If the price of a 2kg packet of maize flour reaches Sh150, it is going to affect prices of other food commodities in the market as Kenyans try to look for alternatives,” the source said.
In 2017, the government intervened by announcing a Sh6 billion maize subsidy. Millers bought the maize at a subsidised price of Sh2,300 per 90kg bag translating to Sh90 for a 2kg packet of flour.
Edited by Peter Obuya