The demand for branded maize flour in the country is currently low.
This is according to Kennedy Nyaga, chairman of the United Grain Millers Association which is an umbrella of smallscale millers in the country.
Nyaga attributed this to low purchasing power by many Kenyans who are yet to recover financially following the Covid-19 pandemic. He spoke to the Star on Friday during an interview.
He explained that after the pandemic, many people lost their jobs so the purchasing power went down, but despite normalising things after the lockdown was lifted, purchasing power for branded unga is yet to pick.
“This is probably because many Kenyans still prefer to take maize to the posho mills in order to cut costs,” said Nyaga.
He said in December 2021, the demand for unga was at 10-15 percent. “This can be attributed to the fact that parents were preparing to take their children back to school and at the same time it was Christmas period so there was a lot of responsibility for many Kenyans,” said Nyaga.
A two-kilo packet of maize flour is retailing at between Sh110 to Sh120 while the premium brands are retailing at an average of Sh140.
He said maize prices are currently at between Sh3,100 to Sh3,200 for a 90kg bag in Nairobi and from Sh2,800 to Sh3,000 in the North Rift region.
Timothy Njagi, a senior researcher from Tegemeo Institute said the prices are favorable for many households hence the low purchasing power.
He explained that with a 90kg bag of maize selling at an average of Sh3,000, this means that a 2kg tin of maize is going for Sh45 and then one uses Sh15 to process maize at the posho mill, totaling to Sh60.
“This is cheaper than a two-kilo packet of branded maize flour hence the low demand. There is also a lot of uncertainty and people wanting to save money until the election is over,” said Njagi.
According to the Alliance for a Green Revolution in Africa (AGRA), Food Security and Nutrition Working Group report, high food prices and impacts of the Covid-19 pandemic continue to affect households' ability to purchase food for consumption.
“As a result, humanitarian efforts are highly likely to be required to prevent the situation from worsening,” said the report.
