Earlier today, the government has suspended the Sh100 unga subsidy that was announced last month by President Uhuru Kenyatta.
Consequently, the government had offered to pay millers so as to bring down the cost of unga which had hit Sh230 per 2 kilogram packet. The maize flour was later retailing at 100 shillings per every 2 kilogrammes of flour after an agreement.
Photo courtesy Maize flour
The announcement suspending the subsidy was made by Agriculture Cabinet Secretary Peter Munya.
On the other hand, the retail outlets are normally given more than a month to pay for supplies but millers had before asked for instant compensations for the subsidy maize flour – many supermarkets choosing not to stock the product.
Subsequently, the chairman of the Grain Belt Millers Association, Kipng’etich Mutai, reported that the 45-day credit period ought to be decreased in order to enhance cash flow in the value chain.
Mr Mutai pointed out if resolved, the move would ensure a steady supply of the subsidized 2 kg packet of maize flour which was set at Ksh100 by the government.
“The 45-day credit period by supermarkets needs to be reduced to facilitate cash flow to enable millers to purchase more maize and increase crushing capacity to support a steady flow of the low-cost flour,” he stated.
Maize price heightening up
Mutai cited that maize supply in the various parts of Western Kenya had heightened due to cheap imports from Tanzania and Zambia.
“We are currently receiving maize from Narok, Bomet and other parts of South Rift. The harvest of the crop in Nyanza and former Western Province has boosted our operations,” he stated.
Agriculture Principal Secretary Francis Owino furthermore affirmed that Ksh160.9 million had been set aside to settle the Ksh325 million invoice from millers.
Few weeks ago, about 3.2 million kilos of maize flour had been supplied to the market under the subsidy programme.
However, the Cereal Millers Association (CMA) affirmed the problem of panic buying among Kenyans ahead of the general election which was held few days ago.
Also read Government Orders Maize Flour Prices to Drop to Ksh100 Ahead of the August Elections
Maize flour in supermarket shelfdy
“This surge in demand is a result of consumers enjoying the benefits of subsidized Ksh100 prices by buying above-average stocks. Consumers are stocking up ahead of August 9, General Election,” read part of the statement.
