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Low supply of maize flour is expected to continue in the local retail outlets as millers warn of reduced production ahead of the August 9 poll.

This is despite government’s assurance that the commodity will be available in the shelves to enable Kenyans enjoy the four-week national maize flour subsidy programme. Millers who spoke to the Business Hub yesterday confirmed they are likely to slow down production next week due to increasing political uncertainty and likely outcome.

Despite the government guarantee that the programme will continue after August 9 polls, there is fear the new administration might disown the programme, thereby subjecting the sector to massive losses.

“Right now I am producing unga to last until August 8,” the Eldoret-based large-scale miller who asked to remain anonymous said.

Ministry of Agriculture confirmed yesterday that 129 millers signed a contract with the government for the Sh100 per 2kg packet subsidy programme though production of the commodity is low.

However, the government and retailers blamed the scarcity of the community for the last one week on panic buying.

Continuous availability

“Any unga supplied in the supermarkets is hurriedly bought by the consumers,” said Agriculture Principal Secretary Francis Owino said  yesterday during a media brief at Kilimo House.

Wambui Mbarire, CEO of Retail Trade Association of Kenya (RETRAK) said they are all working together to ensure continuous availability.  “We ask consumers to buy their usual quantities and stop panic buying which is equally destabilising the market,” she said last week.

Following the launch of the maize subsidy prices of a 90kg bag is retailing at between Sh5,800 and Sh6,000, but millers said demand is high.

 A situation players fear might result in high prices of the commodity to more than Sh200 for a 2-kg unga packet immediately after the General Elections thus further harming consumers who are already have depressed purchasing power.  

Supplying retailers

The millers, the Business Hub learnt, are also delaying supplying retailers with the cheap unga as the current payment arrangement does not favour the current scenario.

Millers have an arrangement with retailers where once they supply the commodities they are paid between 45 and 60 days.

“We prefer supplying the produce to wholesalers who are willing to pay within a shorter period,” a miller told Business Hub yesterday in Nairobi.  

A Nairobi-based miller who did not want to be named complained that he has a stock of maize flour worth Sh8 million. He is among many other millers who were locked out of the programme.

Serving the market

“We have written to the ministry to consider including us in the programme so that we can participate in serving the market. To date there is no response,” said the miller.

Owino said yesterday confirmed the ministry as at August 1, 2022 had received invoices worth Sh325.4 million out of which Sh160.9 million had been cleared from Escrow account opened last week by the National Treasury and Planning deposited Sh4 billion out of the Sh8 billion set aside.

To date 3.2 million kilos of unga has been supplied to the market and this is expected to increase this week, “said Owino. 

 Owino urged the retailers and millers to work out a more friendly payment arrangement characterised by a few days, for example, three days, in order to enhance supply of the cheap unga to benefit the vulnerable Kenyans.