Kenyans will pay extra for maize flour because, despite the government's approval of the importation of duty-free maize, numerous millers have ceased operations due to an extreme shortage of the grain to the point that they cannot sustain operations for the upcoming month. Millers have petitioned the government to implement steps to protect consumers from the high price of flour because they estimate that what is in stock will last less than two weeks.
The severe lack of maize in the local and regional markets has forced the majority of millers to suspend operations and fire staff, according to Mr. Wilson Too, a miller in Eldoret.
Most retail establishments in the North Rift region are now selling two kilograms of maize flour for Sh230, and the government is relying on the importation of 10 million bags of duty-free maize to bring down the price of the basic food. A total of 42,464 tonnes of yellow maize arrived in Mombasa on Sunday from Ukraine, but millers have cautioned that the imports will only have a little impact on prices.
The consignment, which the millers claim is intended for animal feeds, is anticipated to relieve pressure on the market for white maize intended for human use.
The millers have expressed fears that the imported maize will not sell at the anticipated Sh4,200 per 90-kilogramme bag as desired by the government due to the acute shortage of the grain on the global market, which has pushed up prices.
Maize prices have hit Sh6,200 up from Sh4,800 per 90-kilogramme bag in most parts of the North Rift region —the country’s grain basket — and the prices are likely to increase further due to the biting shortage.
The National Cereals and Produce Board (NCPB) has admitted that it has no emergency maize stocks and is faced with stiff competition from traders and millers who offer better prices and prompt payment.
To entice farmers to deliver the product to its buying centers, the board increased its prices from Sh5,100 to Sh5,600 per 90kg bag. However, to date, it has only purchased less than 60,000 bags, mostly in the North Rift region.
The Food and Agricultural Organization (FAOmost )'s recent global food index for December 2022 predicts a 6.2% increase in maize and rice prices globally as a result of limited supply and high demand in Asian exporting nations.
"A strong export demand from Brazil and Paraguay as well as a strong import demand in the European Union have contributed to an increase in the price of maize globally. The decrease is mostly the result of lower stockpiles in Ukraine due to production disruption, according to FAO in
The Kenya National Bureau of Statistics reports that over the past five years, Kenya has imported 295,092 tonnes of maize annually on average. The Ministry of Agriculture has issued a warning that the country's maize supplies will only last through the end of the month, putting an estimated 5.1 million families, mostly in Northern Kenya, at risk of hunger.
According to the Ministry of Agriculture, as of last month, the nation had a supply of 6 million bags of maize that could last until the end of the month despite the rising cost of produce, which caused maize prices to hit Sh6,200 per 90 Kg.
"The price of unga needs to be managed. There are signs that our supply of grain may be inadequate. During a meeting between President William Ruto and maize millers two weeks ago, a report said that food inventories were anticipated to last for two months, or until March 2023-6 million bags.
Due to a severe corn scarcity that has driven up the price of flour and put 5.1 million Kenyans at risk of famine, a number of millers in Western Kenya have ceased operations.
At least ten small and large-scale milling facilities have temporarily closed due to an extreme maize scarcity brought on by a drop in supplies, and some of its personnel have been placed on mandatory leave.
"As the supply deteriorates, more sackings are inevitable, forcing most millers to halt operations until
In Central Kenya, the hardest-hit milling facilities are located in Bungoma, Busia, Kisumu, Narok, Kajiado, and four other locations. They belong to both the Grain Belt Millers Association and the Grain Mills Owners Association (GMOA) (GBMA) Five large-scale millers — Mombasa millers, Unga, Pembe, Dolar, and Kitui millers — have maize reserves that can last a few months, according to trustworthy information at the Cereal Millers Association (CMA).
The Ministry of Agriculture and millers have acknowledged difficulties locating duty-free maize due to the commodity's scarcity on the international market, which has driven up costs.
The government wants to sell imported maize for Sh4,200 per 90kg bag, but millers have imposed strict requirements, such as letting the market's forces of supply and demand establish the prices and paying Sh2.6 million in subsidy arrears from the previous year.
Millers are concerned that maize prices would continue to rise as the supply situation worsens.
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