Why Uganda grain traders want government restrict access to Kenyan counterparts

NAIROBI, KENYA: Ugandan grain traders have raised the alarm over the huge appetite shown by their Kenyan counterparts, who have taken advantage of the low prices to import in bulk.

Through the Uganda Grain Council, the traders now want their government to restrict access for Kenyan traders and find ways to increase prices for the middlemen.

According to reports by Ugandan newspaper Daily Monitor, Kenyan traders have taken advantage of the low prices in eastern Uganda districts to buy maize from as low as $180 (Sh18,500) per tonne, and flipping it on the Kenyan market where a tonne is going for as high as $430 (Sh44,300).

The paper quoted the grain council chairman Chris Kaijuka as saying that the prices in Uganda were dropping as a result of a bumper harvest.

“We have seen a bumper harvest not only in Uganda but even in other regional countries. As a result, the prices have gone down,” said Mr Kaijuka.

The traders say Kenyan middlemen are pushing Ugandan farmers into a tight corner as they had banked on selling the produce to Kenyan strategic stores at a higher price.

The new row comes even as maize prices in Kenya are set to go up as the Government ends a Sh6 billion subsidy on maize imports that was rolled out last year in May following prolonged drought.