Unga to cost Sh75 per 2kg packet, Govt says

The government has ordered retailers to immediately lower maize flour prices to Ksh 75 per  two-kilogramme packet down from the current retailing price of between 85 and 90 shi*lings.

Agriculture Cabinet Secretary Mwangi Kiunjuri on Wednesday said the current certainties in the market shows that retail prices should be less than what is selling now considering that the 90-kilogramme bag has reduced from Ksh 3,200 to current Ksh 1,600.

Currently, the cost of a 90-kilogramme bag of maize is averaging Ksh 1, 600 which is 50% of the 2017 price of Ksh 3, 200.

Speaking in his office at Kilimo House, the CS said a survey carri*d out by the ministry indicated that traders were selling maize flour as high as Ksh 100 per two-kilogramme packet.

“We held meetings with Cereal Mi*lers A*sociation last week and yesterday with the United Grain Mi*lers A*sociation and indications are clear that they wi*l be selling a bale of maize flour between Kshs 700 and Ksh 800 per bale,” he said

This the CS emphasised that  translates to an average wholesale price of  Ksh 65 per two-kilogramme packet  thus the retail prices should not surpa*s the Ksh 75.

“It is disappointing, surprising and unfortunate that this benefit is not being pa*sed to the consum**s. The position of the government is that the two-kilogramme unga should not retail at more than Ksh 75,” he emphasised.

Kiunjuri noted that any trader selling Unga at a higher price of Ksh 75 is not only exploiting Kenyans but taking advantage of consum**s.

“Government wi*l now keenly monitor the situation and regular surveys wi*l be carri*d out in the market  as we wi*l not allow traders to exploit consum**s as much as we appreciate it is a free market,“ he w*rned.

The CS dismissed excuses that the recent percent Value Added Tax (VAT) increase on fuel products is driving up the cost of maize flour.

“This does not hold given that VAT on mi*ling was zero rated allowing the mi*lers to claim refunds from KRA,  Kiunjuri said  noting that various initiatives inst*tuted in the sub sector since last year when the country experienced acute food cri**s following prolonged drought have started bearing good results and mainly market prices s**bilisation.

UGMA chairman Peter Kuguru said mi*lers wi*l sell maize flour to retailer at not more than Ksh 800 down from the current Ksh 984 per bale translating to Ksh 67 per two-kilogramme packet.

He acknowledged that since the prices wi*l come down they immediately expect the same to translate to consum**s and that a 2 kg packet wi*l be retailing at Ksh 75 or less .

“We are impressed by the Government interventions in the market so far and we wi*l not contravene the new directive,” said Kuguru.

Government, Kuguru said, has a*sured of regular release of maize by the National Cereals and Produce Board (NCPB) and thus guaranteeing s**ble supply in the market.