Millers are pushing for further increase in maize flour prices due to a lack of maize.
Grain Belt Millers Association (GBMA) chairperson Kipngetich Mutai has advised consumers to brace for higher prices of flour since they fear that maize flour prices may continue to increase as the supply of the stable deteriorates.
“Consumers should brace themselves for higher prices of unga as we face more difficulties sourcing maize to sustain our milling operations,” he said.
According to Mutai, it is difficult to import grains from Tanzania due to stringent conditions for obtaining an export licence – popularly known as Kibali – making it hard for Kenyan millers to import the grains into the country.
Maize shortage has forced processors to shut since the beginning of this month as they lack the financial muscles to import the grain compared with their large-scale counterparts.
The maize shortage has also hit large-scale processors that are not milling continuously as they should but at least they are still operating because of the purchases that they are making from Zambia and Malawi.
The government allowed millers to import maize outside of the region duty-free but the processors argued that the produce from the world market is more expensive and not economically viable to ship in at the moment.
As such, millers are now importing the grain from Malawi and Zambia, with a 90-kilogramme bag landing at Sh5,200 in Nairobi.
The limited stocks available have seen a 90kg bag sell for Sh5,000 from Sh4,700 last month. The small-scale processors account for 70 per cent of the local flour market.
