Why Unga is still retailing at Sh230 not Sh100

 

The price of maize flour may not reduce any time soon even as the government announced that the changes should be effective from Monday.

This is because there is no clear framework on how the Government will pay milers to sustain the Sh100 per two-kilo packet.

A spot check by the Star today in different supermarkets within the CBD showed maize flour is still retailing at between Sh195 to Sh220.

A bag of 5kg maize flour is being sold between Sh486 to Sh539, while a 10 kg bag is going for Sh1,000.

The Government had sought to subsidise the cost of maize flour to Sh100, which according to the internal document from the Ministry of Agriculture, showed that the changes were supposed to happen immediately.  

The document indicated that the recommended retail price of flour should not exceed Sh100 for a 2kg packet, Sh250 for a 5kg packet and Sh490 for a 10kg packet.

A miller who did not want to be named due to the sensitivity of the issue said the price change may take time because they (millers) have to exhaust the current stocks already in the market.

Timothy Njagi, a senior researcher at the Tegemeo Institute of Agricultural Policy and Development, said there has to be a clear framework on how to bring prices down and how the Government will pay millers in order to sustain the subsidy.

In 2017, when the government introduced a similar subsidy, millers complained about the delays in payment, for the project which was aimed at cushioning Kenyans against the high cost of Unga.

Njagi said there has to be a system to verify and check the numbers to determine how the Government will pay to bring down the cost.

“Until the systems are put in place and there is a guarantee on payment, millers may still be concerned and hesitant on this. Millers have to ensure they sign a contract with the Government or guarantee payment. Until that is cleared up, then there will be uncertainties on the maize flour prices,” said Njagi.     BY THE STAR