Traders seek Ksh.175 million to cover losses from selling unga at Ksh.100

Traders affiliated to the Retail Trade Association of Kenya (RETRAK) are seeking in excess of Ksh.175 million from millers to cover losses from selling a two-kilogram packet of maize flour at Ksh.100.

In a statement, the retailers through RETRAK stated they were holding unsold stocks estimated at 750 tonnes acquired before the Presidential orders to lower the cost of unga on Wednesday.

“Consequently, we have commenced engagements with the respective maize mill suppliers to recover more than Ksh.175 million, which is a cumulative estimate of the higher price paid earlier to them to facilitate deliveries,” the traders said in a statement undersigned by RETRAK CEO Wambui Mbarire.

“It is instructive to note that fast-moving commodities such as unga are paid for in advance by retailers or in very thin credit terms which do not exceed 14 days.”

Many traders including major retailers to shopkeepers were caught unawares by Wednesday’s directive to lower the price of unga by more than half exposing them to losses in the millions of shillings from holding old stocks.

The old stocks, many of which were still sitting in shelves on Thursday morning had been acquired at relatively higher prices to the cost set by the Presidential directive a day earlier.

Nevertheless, the majority of maize flour brands were still retailing at previous prices on Thursday morning to stand against the Presidential directives.

A spot-check by Citizen Digital in four top supermarkets in Nairobi County showed the price of unga was largely unchanged despite the order.

Only the Jogoo brand had adhered to the directive to retail at Ksh.99 and Ksh.98 at Naivas and Carrefour.

While the price of some unga brands such as Pembe would later in the day fall to prices within the recommended price range in stores such as Naivas, customers were restricted to a purchase of no more than four two-kilogram packets per shopping trip.