Millers divided over the cost of ‘cheap’ Unga as Ruto promises further price reduction
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Millers disagree on how much 'affordable' Unga prices despite Ruto's assurances of future price reductions
Millers disagree on how much ‘affordable’ Unga prices despite Ruto’s assurances of future price reductions.
Millers are at odds over the landing prices of imported maize intended to lower the price of Unga through duty-free imports.
A section of the United Millers Association disagrees with the government’s requirement that the product sells at Sh4,200 per 90-kilogram bag despite high prices in the international market.
This disagreement stems from the importation of a “huge” consignment of maize from the Common Market for East and Southern Africa (Comesa) to lower flour prices to Sh150 per two-kilogram packet.
“We have imported a huge consignment of maize from Comesa that will land in the country in the next few weeks to cushion consumers against the high cost of flour,” said Mr. Ken Nyaga, chairman of the United Grain Millers Association.
However, Mr. Nyaga remained non-committal on the Comesa states where the commodity is being sourced, and the landing prices, as consumers continue to endure the high-cost maize flour despite a promise by President William Ruto that cheap Unga will hit shelves.
Mr. Nyaga disclosed that the government owes small-scale millers Sh500 million, making it difficult for them to access capital to import the grains.
“Most of our members are faced with financial challenges due to delays by the government in settling the Sh500 million debt. Some of them were also not issued with import permits,” said Mr. Nyaga on phone.
Some millers are reluctant to import maize and are instead demanding payment of Sh2.6 billion in subsidy arrears from last year. In most retail outlets, a two-kilogramme packet of maize flour is selling for between Sh182 to Sh230 depending on the brand. Two brands are however retailing at between Sh159 and Sh161.
A section of millers who are also members of the United Grain Millers Association has dismissed the possibility of imported maize landing at Sh4,200 per a 90kilogram bag as demanded by the government.
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“The maize flour can only be sold at Sh150 per two-kilogram me packet if it lands in the country at Sh4,700 per bag. The commodity is currently selling at above Sh5,400 in the regional and global market,” said a miller who requested not to be named.
Meanwhile, Ruto has announced that the prices of maize flour will fall further from next week.
Speaking in Meruo in Saturday, President Ruto said his administration is committed to delivering cheap Unga for Kenyans.
He said the government has made significant interventions to lower the cost of living, which has hit the roof for the majority of Kenyans.
“I am happy to report that the journey to lower the high cost of living has begun,” he said.
Although he did not disclose the new retail prices for Unga from next week, Ruto said the prices will fall below Sh150.
“My administration will deal with this issue of hunger completely, putting Sufurias on the head will not solve anything,” he said.
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