Ugali Gradually Becomes Costly as 2KG Maize Flour Packet Hits Ksh.148

KEY POINTS
A 2-kilogram packet of Pembe, Ahab, and Jogoo maize flours now retail at 144 shillings, 148 shillings, and 140 shillings, respectively, on different supermarket shelves across the country.
KEY TAKEAWAYS
Household purchasing power has already deteriorated as agricultural labor opportunities remain low, the value of livestock declines and staple food prices increase amid the fourth season of poor local production.
Kenyans will have to pay 148 shillings for a 2-kilogram packet of Soko Maize Flour, up from an average of between 130 -140 shillings in March 2022.
A 2-kilogram packet of Pembe, Ahab, and Jogoo maize flours now retail at 144 shillings, 148 shillings, and 140 shillings, respectively, on different supermarket shelves across the country.
The price increase attributed to the rise in the cost and scarcity of corn in the market is the highest ever recorded in the country for years.
“The price of corn has gone up, and it is not readily available in the market; this is why the price of flour is going up,” Rajan Shah, CEO of Capwell Industries, said.
In 2017, the cost of a 2kg of maize flour hit 136 shillings due to the acute drought experienced at the time.
Meanwhile, as the cost of maize flour packets continues rising on shelves, the cost of maize also continues to shoot higher in the market.
The price of a 90-kilogram bag of maize rose to 4,500 shillings from 3,700 shillings in March 2022 as the supply of the product tightens in the market across major counties.
The cost of 2Kg tin of maize is now retailing at 140 shillings in Kakamega and 130 shillings in Kisumu and Nairobi.
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The rise in the staple food price adds to an already costly shopping basket for consumers who are grappling with the high cost of other staples such as sugar, cooking oil, and milk, a move likely to trigger inflation.
According to millers, there have been difficulties in getting maize stocks in the market because of the reduced imports from the neighboring Tanzania and Uganda countries.
Maize imports from these two counties have been supplementing the country since the amount of stock produced is insufficient to meet the annual requirements.
There have been speculations that farmers are taking advantage of the situation to hoard the product in anticipation of better selling prices in the coming days.
According to a report released by the Ministry of Agriculture in march 2022, 85 percent of the total corn stock in the county is in the hands of farmers.
Moreover, the growers have 8.5 million bags of corn out of 10.1 million 90kg bags, leaving millers with a severe grain shortage. Millers and traders had a pallet of 1.5 million bags.
The country’s continuous drought has also significantly affected maize production. Rainfall in October and November 2021 was less than 60 percent of the 40-year average across much of northern and eastern Kenya, with some areas registering a significant delay to the start of the season or no onset of rainfall at all.
In marginal agricultural areas, the short rain season supports up to 65 percent of annual crop production, which is a key source of food and income for poor households. Given the inferior performance of the season, many households did not plant, and among those who did, most crops wilted or failed to germinate.
Kenyans face tough economic times, and most households, especially in the arid and semi-arid areas, face acute hunger.
Despite ongoing assistance, needs far outpace ongoing and planned distributions. Furthermore, with a forecast of below-average March to May 2022 rainfall, needs in 2022 are increasing quickly.
Household purchasing power has already deteriorated as agricultural labor opportunities remain low, the value of livestock declines and staple food prices increase amid the fourth season of poor local production.
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