DEFICIT

Unga prices hit a high of Sh130 for 2kg packet

Millers chairman says farmers have exhausted maize stocks, wants SFR to approve second phase of sale from the cereals board

In Summary

• A 90 kg bag of maize in Nairobi is selling at Sh3,400, Sh3,800 in Mombasa, Sh3,600 in Eldoret, Sh4,500 in Busia and Sh4,000 in Kisumu. 

• PS says millers are relying on traders who are getting maize from Tanzania, though in an informal way. 

Maize and wheat flour in a supermarket. The price of maize flour has skyrocketed due to drought in the country
'STOCKS EXHAUSTED': Maize and wheat flour in a supermarket. The price of maize flour has skyrocketed due to drought in the country
Image: MONICAH MWANGI

The price of a 2kg packet of maize flour has gone up from Sh120 to between Sh125 and Sh130 in the past two weeks. 

A check by the Star showed that the wholesale prices for a 2kg packet of maize flour is Sh115, while retail prices of common brands is between Sh125 and Sh130.

Agriculture Principal Secretary Hamadi Boga confirmed on Friday that prices are at an average of Sh125. He attributed this to the high cost of maize selling at between Sh3,400 and Sh4,000 for a 90kg bag.

 

Data from the agricultural commodity prices indicate that a 90kg bag of maize in Nairobi is selling at Sh3,400, Sh3,800 in Mombasa, Sh3,600 in Eldoret, Sh4,500 in Busia and Sh4,000 in Kisumu.

The price is at an average of Sh3,500 across the country. Boga said millers are relying on traders who are getting maize from Tanzania, though in an informal way.

“We are in discussion with our neighbouring country to ensure that we make the process formal so our millers can have enough to help stabilise prices,” Boga told the Star on the phone.

Kipng’etich Mutai, chairman of the Grain Belt Millers Association from Eldoret, said farmers are not hoarding any maize as it had been reported by a section of MPS from the North Rift.

“Our farmers have exhausted the huge maize stocks they had. Today, I can only get about two to five bags of maize from individual farmers and it will take me at least one week to fill up a pickup,” he said.

Mutai said farmers in Eldoret are now selling using a 2kg tin at Sh120 for more profit.  He urged the Strategic Food Reserve to approve the second phase for millers to buy maize from the National Cereals and Produce Board.

In May, SFR released two million bags of maize to millers at Sh2,300 per 90 kg bag.

 

By last week, 400,000 bags had not been collected from the cereals board stores, according to SFR.  The board had released 1.7 million bags of maize for maize flour and 300,000 bags for animal feed.

On July 13, Martin Kinoti, the secretary-general of Association of Kenya Manufacturers, said animal feed millers are the hardest hit by the maize shortage.

“The 286,000 bags we received from SFR are just a drop in the ocean, as it only lasted for three weeks. Now we are back to competing for white maize with flour millers at a high cost of Sh3,500. This has put the cost of animal feeds high up,” Kinoti said.

Edited by R.Wamochie 

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