The price of maize flour could go up by kes 2 for a two-kilogramme packet in the coming day. The rise in prices is attributed to shortages in the market and costly maize in the market, coupled with a recently introduced cess on grains delivered to Nairobi.
Last week the Kenya Revenue Authority (KRA) announced that it had started charging a levy effective March 11 on deliveries made in Nairobi where all the large-scale millers are based with a few branches in other cities.
Unga Limited chief executive officer Joseph Choge said cess alone could see the cost of flour go up by kes 2 once the cost is factored in the pricing.
“Cess will definitely affect new stocks that we are buying and prices will increase. Currently, the company has not yet increased prices, however, this will be done for new supplies coming to Nairobi.” Joseph Choge Unga Limited chief executive officer.
The price of maize flour recently hit an all-time high in the market rising steadily to levels that were last seen in 2018 with some brands of a two-kilogramme packet of flour hitting a high of kes 134 with millers attributing the rising prices on expensive maize.
Speaking on Wednesday during the Miller annual conference in Nairobi, chairman of the United Grain Millers Association Ken Nyagah whose organisation accounts for 60 per cent of the flour market in the country, said they were hardly getting grain from farmers as the supply of the grain tightens in the market.
“We will be forced to increase the prices of flour as projections show the current stocks of maize that we have will last for two months,” Ken Nyagah.
Popular brands such as Dola, Pembe, Ajab, Jogoo and Soko are now trading at kes 133, kes 124, kes 127, kes 122 and kes 123 respectively for a two-kilo packet at major retail outlets from an average of kes 108 in December. While high-end brands like Amaize and Hostess are selling at kes 149 for a two-kilo packet.
Mr Nyaga urged the government to start putting in place a strategy for imports of maize from Mexico as currently there are not enough stocks within the region, in order to cushion consumers from high prices.
Millers say they had been receiving good stocks of maize from Tanzania in February but the volumes have been dwindling while most stocks from Uganda are heading to South Sudan where they fetch a good price due to scarcity.
“If there is a decision on imports that should be made by the government, then it should happen now because of the shortage that is expected globally in the coming months,” Mr Nyagah.
