Maize flour prices to reduce by Ksh.2 after levies suspension

Agriculture Cabinet Secretary Peter Munya announced on Tuesday, June 28, that the government will issue a directive on Thursday suspending the levies that will lower the price of flour.

According to the United Grain Millers Association (UGMA), an umbrella organization for both small and large-scale millers, the move is insignificant and will have little impact on consumers.

"The move is so insignificant we need a serious government intervention on making the maize available to reduce significantly on the cost of flour," said UGMA chairman Ken Nyaga as quoted by Business Daily.

Mr Nyaga also urged the government to initiate direct talks with other countries, claiming that they are currently Kenya's source markets, in order to import maize.

"If we can have direct government talk to scrap export permit levy, then the price of maize will come down and this will impact on the cost of the final product," he noted.

Imported maize was charged Ksh 100 for a 90kg bag because one bag yielded approximately 36 2kg packets.

A 2kg packet currently costs at least Ksh200, which means that with the levy relief, a packet will cost Ksh.198.