CS orders traders to sell Unga at no more than Sh75

You will soon start enjoying cheaper maize flour after the Government directed millers and traders to sell a two-kilogramme packet at Sh75.

The latest bargain price of the key ingredient for making Kenya’s popular staple - ugali - ordered by the State is likely to excite consumers, but also gives a strong indication of a maize glut, which threatens farmers’ earnings.

Agriculture Cabinet Secretary Mwangi Kiunjuri, while issuing the order in Nairobi, warned that the Government would take “necessary action” against traders who continued “exploiting Kenyans” by charging a higher price.

“As much as it is a free market, every responsible Government must ensure that it protects its people,” said Mr Kiunjuri at a press conference that was also attended by millers under their umbrella body, the United Grain Millers Association.

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Kiunjuri was at pains to explain how this latest directive would be enforced without the backing of law or regulations.

Last year, a 2kg of unga (maize flour) was capped at Sh90 in a subsidy programme that saw the Government supply a 90kg of maize to millers at Sh2, 300. In return, millers were expected to clearly brand the packets with a price tag of ‘Sh90’.

Yesterday, CS Kiunjuri said some supermarkets in Nakuru County were selling a 2kg packet of unga at Sh70, Nanyuki at Sh100 and Nairobi at between Sh82 and Sh94, in what he said could be clear cases of collusion between players in the value chain.

Although the CS was tight-lipped on the impact of last year’s subsidy programme, the current glut has its roots in the controversial programme that saw maize valued at a staggering Sh40.2 billion imported into the country.

Under the subsidy programme, a record 14.7 million bags were imported, mostly from Mexico, after a devastating shortage of the grain that had seen retail prices skyrocket to Sh170 per 2kg packet.

Kiunjuri noted that the country was currently enjoying a bumper harvest, with more land being put under maize production. This has seen the quantity of maize produced increase by 20 per cent this year.

“In 2018, the area under maize increased by 11.8 per cent while production increased by 20 per cent. This is from the normal production of 34 million to 40.9 million bags,” said the CS.

He added that with favourable weather conditions, this was projected to increase by six million bags to 46.9 million, the highest in five years.

He said there was, therefore, no justification for the current high prices.

“The question Kenyans are asking is why it is that millers and traders are quick to adjust the price upwards and not downwards when the cost of maize comes down?” asked Kiunjuri.