Millers warn of increase in maize, wheat flour prices amid shortage

Kenyan millers have warned of a possible increase in maize and wheat flour prices, this coming just a day after Members of Parliament shot down proposals by the National Treasury to increase taxes on such commodities.

In a joint statement with various sector stakeholders on Wednesday, United Grain Millers Association (UGMA) said the country is likely to experience higher prices due to a shortage which is currently being experienced in the country.

“We would like to register concerns on the shortage of maize and wheat in the country, which if left unchecked, shall lead to a devastating food crisis,” the millers said.

According to the millers, the shortage of these commodities has been caused by persistent drought and reduced maize flow from East Africa Community (EAC) cross-border trade.

The millers have also attributed the shortages to the ongoing war between Ukraine and Russia, which has affected importation, as well as the ravaging effects of the COVID-19 pandemic.

“In addition to this, the high and volatile international prices have resulted in unprecedented retail prices. A 2kg packet of maize flour is currently retailing at approximately Ksh.155-Ksh.165, whereas that of wheat is Ksh.185-195,” they said.

To cope with the demand for the commodities, the millers say that they have resolved to import from other countries at higher prices.

To cushion the country against the devastating effects of his shortage, the millers want the government to create a fair and level playing field by imposing fair import duties on wheat and maize from outside countries.

They also want the government to allow duty-free importation of duty-free maize from the European Union, and to encourage Kenyan farmers to release their maize stocks.