Maize Flour Prices Hit Historic High Despite Harvesting

By Jane Muia / Published November 28, 2022 | 11:50 am

KEY POINTS

Millers have adjusted their factory prices from 2,250 shillings per bale to 2,340 shillings in line with the rising cost of maize, which forms 80 percent of the total cost of production.

KEY TAKEAWAYS

According to the Kenya National Bureau of Statistics, local maize production in 2020 stood at 42.1 million bags, down from 44.0 million bags in 2019. The country’s maize flour production over the last five years has averaged 2.8 million tons annually.

Maize flour prices have hit a record high despite harvesting signaling hard times for households that are already grappling with the high cost of other goods.

A 2-kilogram packet of the commodity is retailing at a high of 213 shillings for some brands, an 18.3 percent jump from 180 shillings at the beginning of this month. United Grain Millers Chief Executive Officer Ken Nyaga attributed the price increase to an increase in the price of maize which has jumped to about 6,000 shillings from around 5,000 shillings.

“There has been no surplus in the market in the last two weeks and we have seen prices of maize rise from 5,000 shillings to 6,000 shillings currently,” said Nyaga.

Millers have adjusted their factory prices from 2,250 shillings per bale to 2,340 shillings in line with the rising cost of maize, which forms 80 percent of the total cost of production.

This is the first time in Kenya that the wholesale price of maize has crossed the 6,000 shillings mark at a time when farmers are harvesting the main crop for the year.

Maize meal is the key ingredient for “ugali” a local delicacy and staple food. When it goes up then it sets the stage for hard times for many Kenyan households. This is besides the rising cost of other basic commodities such as cooking oil which has now become a new ‘’gold” for many households.

In recent months, maize shortage has been reported in some counties. Trade Cabinet Secretary Moses Kuria said that farmers are hoarding at least 20 million bags of maize in anticipation of good prices in the coming days. Traders also hold concerns about high inflation, the impact of the war in Ukraine on commodity prices, supply chain disruptions, and the impact of the depressed rainfall on agricultural production.

The rapid increase in basic commodity prices has pushed the annual inflation rate to 9.6 percent in October from 9.2 percent a month earlier, marking a 65-month high.