Scramble for Sh90 unga as stocks run out ahead of price increase

Maize meal with chicken and vegetables (Photo courtesy)

Shoppers in Kisumu scrambled for the Sh90 maize flour ahead of the anticipated surge in prices next week following the expiry of the six-month Government subsidy on December 31 last year.

Maize flour prices are expected to go up by at least Sh20.

A spot check across the lakeside city found that most of the shoppers were purchasing between three and 10 packets of the 2kg maize flour.

“I read of the impending price increase but I do not know by how much yet, so I am just playing safe, trying to save as much as I can,” said Collins Oduor who bought seven packets.

Store managers at Naivas, Choppies and Tuskys supermarkets told Saturday Standard that their head offices had received circulars of the new price list from millers which takes effect on Monday.

Reports indicate that millers have started buying maize at between Sh3,200 and Sh3,400 for 90kg bag, in what will force them to increase flour prices by at least Sh20. This variation includes costs of transportation.

This will in turn push up the cost of the 2kg packet to at least Sh110, as forces of demand and supply see the retail price differ in outlets.

The Government subsidy announced on May 16 last year drastically lowered the price of a 90kg bag of maize from Sh4,000 to 2,300 following drought that led to maize shortage.

To avert future shortage, the Government is already buying maize from the farmers to replenish strategic reserves in a Sh6.7 billion plan. The Government is offering the farmers Sh3,200 for 90kg bag.