Commodity Watch

Maize Flour Is Set To Reduce To 100 Shillings

BY Getrude Mathayo · July 18, 2022 04:07 pm

KEY POINTS

"The market price of maize (per 90kg bag) as at the date of this contract is in the range of 5,800 shillings and 6,000 shillings. Based on this market price, MOALFC will compensate the miller for each unit sold," the statement read in part.

KEY TAKEAWAYS

On July 1^st, Agriculture Cabinet secretary Peter Munya suspended all levies imposed on imported maize in pursuit of lower cost of the staple will only cut the price of flour by 2 shillings for a two-kilo packet.

The price of maize flour is set to reduce to 100 shillings after the government introduced a massive subsidy to millers, effective Monday, July 18.

Agriculture Cabinet Secretary Peter Munya directed that all retailers should sell the two-kilogram packet of flour at 100 shillings, a drop from the high 230 shillings.

The letter showed that the 1-Kilogramme packet should retail for not more than 52 shillings while the 500-gram packet should retail for a maximum of 30 shillings. The subsidies, however, will only be effective for a month after which the government hopes the prices will have fallen back to normal market rates.

“It is agreed between the parties that the ministry shall deploy market surveillance teams to ensure that sifted maize flour is sold at the maximum recommended retail price stated

“The market price of maize (per 90kg bag) as at the date of this contract is in the range of 5,800 shillings and 6,000 shillings. Based on this market price, MOALFC will compensate the miller for each unit sold,” the statement read in part.

The document further specifies that the Ministry will send representatives to the miller’s premises and depots to verify proof of the market sale of maize flour. In recent months, the cost of food and other essential consumer goods has been on the rise, with some of these costs reaching previously unheard-of heights.

Maize and wheat flour, sugar, cooking oil, tissue paper, milk, food items, and bread are those that are most commonly affected.

The government through different agencies charges levies that comprise the Certificate of Conformity fee levied by the Kenya Bureau of Standards, the phytosanitary fee charged by the Kenya Health Inspectorate Service, and the Import Declaration Fee imposed by the Kenya Revenue Authority.