- The cost of maize flour has gone up in Kenya following the shortage of grains in the North Rift food basket in the country
- The cost of a 90 kg bag of maize has risen between KSh 400 and KSh 600 as millers and NCPB compete for grain
- Minister of Agriculture (CS) Mutahi Kagwe instructed farmers to comply with the 30-day order to produce their crops
With the price of maize flour continuing to rise after some millers reduced their demand, farmers in the North Rift region are stockpiling grain in anticipation of shortages and higher costs.
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Some farmers continue to hoard corn despite the government issuing a 30-day order for farmers to release their savings or risk duty-free grain imports in an attempt to stabilize flour prices.
What is the price of maize in North Rift?
A bag of 90 kilos of maize, which used to cost KSh 3,800, now costs KSh 4,200 as many farmers are hoarding their crops in anticipation of higher costs.
Due to the deficiency, Daily Nation reported that the price of maize flour has increased from KSh 120 to KSh 160.
This comes even as more than 2.5 million Kenyans experience increased food insecurity amid ongoing drought.
Despite the government’s efforts to set price limits, many retail stores have increased the price of corn flour.
“We have had to increase the price of flour to maintain operations due to the increase in the cost of maize due to reduced supply,” David Maina, a miller explained.
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Millers claim that government interference undermines competition in a free market and that supply and demand should determine the price of cornmeal.
“By threatening them with cheap imports, the government should not pressure farmers to send grain. Although consumers may benefit from this in the short term, farmers and millers suffer as they have to pay more to access markets at competitive prices,” said Wilson Lang’at, a farmer and agronomist from Ziwa in Uasin Gishu County.
Why did the Minister of Agriculture Mutahi Kagwe warn the farmers?
Minister of Agriculture Mutahi Kagwe he instructed the farmers to comply with the final order of 30 days to produce their crops.
He warned that failure to comply with the law will force the government to allow duty-free imports.
He noted that fierce competition from millers makes it difficult for the National Cereals and Crops Board (NCPB) to buy two million bags of maize for the country’s strategic food reserves.
How much does NCPB offer for a 90kg bag?
NCPB announced that it is buying a 90 kg bag from farmers for KSh 4,000, an increase of KSh 500 from the previously announced KSh 3,500.
Since millers and traders have raised the price of maize to KSh 4,400 per bag to support their savings, NCPB has only purchased 200,000 bags so far, falling short of its target of two million bags.
As an emergency reserve, the government must have four million bags of grain, including rice, beans, and corn, or an equivalent amount of cash.
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