The price of maize flour may not go down any time soon due to a looming maize shortage locally and in the international market.
A 2kg packet of maize flour is currently retailing at between Sh190 and Sh230.
Agriculture Principal Secretary Kello Harsama said South Africa is the only country with sufficient maize stock in the region.
But their grain selling price has shot up due to increased demand from many regional countries that are currently facing prolonged drought.
While speaking to the Star on Tuesday, the PS said maize is currently not available in traditional import supply countries like Tanzania, Malawi and Uganda and it is only available in South Africa.
Months after millers and traders were allowed to import 900,000 metric tonnes of duty free maize, importers are struggling to access cheap grain at the international market.
Importers are unable to find cheap maize at the international market to match the Sh4,200 that the government had set for any maize landing at the Port of Mombasa.
For instance, a 90kg bag of maize may cost an average of Sh5,000 from the country of origin. If other costs are added such as shipping logistics, the price may go up by Sh500 to Sh1,000.
“There is a scramble for maize in SA because currently there is a scarcity of maize in the international market and what is available is expensive with a 90kg bag selling at Sh6,000,” Harsama said.
The 2023 Agriculture Sector Survey report by the Central Bank of Kenya showed that retail prices of cereals, grains and their end products are expected to either decline or remain unchanged in April 2023.
The PS, however, assured Kenyans that by the beginning of May there will be a lot of maize in the region, and countries like Zambia, Mozambique and Tanzania will be harvesting.
“We are not worried because come May, there will be regional harvest and maize will be available. This is likely to bring the price of maize down from the current Sh5,500 to Sh6,000 per 90kg bag,” he said.
Harsama added that about 50,000 metric tonnes of maize will be landing at the Port of Mombasa this week from South Africa.
Kenya Ports Authority website shows a shipment of about 50,000 metric tonnes of white maize landed at the Port of Mombasa on Tuesday.
The government has ordered 1.4 million tonnes of white maize, 1.1 million tonnes of rice and 500,000 tonnes of yellow maize (for animal feed manufacture). This means that about 16 million 90kg bags of white maize, about 2.2 million of 50kg of rice and about 5.6 million 90kg bags of yellow maize will be shipped into the country.
But a miller who did not want to be mentioned said this is just a drop in the ocean compared to the huge maize demand in the country.
“If there is no immediate action taken to provide a solution to the maize crisis, prices of unga are likely to go up. The government should look into offering subsidies as a short-term measure to help bring down the price of unga to at least Sh110 per 2kg packet,” the miller said.
Meanwhile, the government has urged farmers to sell any maize that they are hoarding and only retain what they need for their household use before imports start getting into the country.
(edited by Amol Awuor)