Millers have said plans by Agriculture Cabinet secretary Peter Munya to suspend all levies imposed on imported maize in pursuit of lower cost of the staple will only cut the price of flour by Sh2 for a two-kilo packet.
United Grain Millers Association (UGMA), an umbrella body of small and medium-scale millers, says the move is so insignificant that it will not have any impact on consumers.
Speaking at the Namanga border on Tuesday, Mr Munya said the government will gazette a directive by the end of Thursday that will suspend the levies imposed on imported maize to lower the cost of flour that is now retailing at Sh210 for a two-kilo packet.
Imported maize is levied Sh100 for a 90-kilo bag, with a single bag giving 36 packets of two kilos when milled, meaning that suspending the levies will only cut the cost by Sh2.7.
The government through different agencies charges levies that comprise the Certificate of Conformity fee levied by the Kenya Bureau of Standards, the phytosanitary fee charged by the Kenya Health Inspectorate Service, and the Import Declaration Fee imposed by the Kenya Revenue Authority.
“The move is so insignificant, we need a serious government intervention on making the maize available in order to cut down significantly on the cost of flour,” UGMA chairman Ken Nyaga as quoted by Nation.
