Posted on October, 3, 2018 at 11:00 am
Nicholas Waitathu and Bridget Ondu
Consumers will have to wait longer before they start enjoying reduced prices of maize flour announced last week by the government.
A spot check by People Daily in most of the retail outlets within the Nairobi central business district revealed that local supermarkets are yet to reduce the price of unga to Sh75 as directed by Agriculture Cabinet Secretary Mwangi Kiunjuri.
Peter Kuguru, chairman of United Grain Millers Association (UGMA) said local supermarkets have defied the directive to sell two kg maize flour at Sh75 and instead are selling the commodity at previous prices of between Sh82 and Sh92 per 2-kilogramme packet.
Kuguru accused large-scale millersm saying they are out to sabotage the effort by government and continue exploiting consumers.
“This is just impunity and don’t care attitude by the big boys in the market yet they control only about 35 per cent of the market. For us we control more than 65 per cent of the market that include far-flung areas. We are already selling the product to our traders at reduced wholesale price of less Sh800 for a bale,” he said.
In estates and informal settlement areas and in rural areas, the prices are above Sh100 as shopkeepers and traders cite high transport cost and equally the millers are yet to reduce the prices. In Mombasa, a 2kg-packet of maize flour is still retailing at Sh100 despite the government;s directive that the commodity should be sold at a maximum price of Sh75.
Majority of interviewed retailers yesterday claimed they are unaware of directive and vowed to stay put with the current Sh100 price.
In most supermarkets the packet is selling for between Sh85 and Sh90 as customers fear that the directive of controlled price could be far from taking effect. Maisha Maina, a shopkeeper in Karama area Nyali Constituency, said he still has his old stock and he will not sell the flour at a lower price yet he bought the same at higher amount.
Cheaper price
“I havent heard of that but it would be unfair to us no matter how good it sounds to the mwananchi. If we buy them at a cheaper price then we will also sell at that but before we are done with this stock, the prices will remain at that,” he said.
Kiunjuri last week directed millers to reduce the price of a 2kg-packet of maize flour to Sh75 and stated that any trader selling the flour at more than Sh75 will be arrested for exploiting consumers.
The CS acknowledged that the economy is liberal but claims millers and traders have disregarded the market forces of demand and supply to continue exploiting Kenyans through prices.
A 90kg bag of white maize is currently selling at an average of Sh1, 600 while millers are selling a bale of unga at more than Sh800 translating to a wholesale price of slightly above Sh65 per two-kilo packet of maize flour. Considering other factors mainly transport and electricity, the retail price should not go beyond Sh75.
“It is therefore disappointing and unfortunate that this benefit is not being passed to the consumers. The position of the government is that the 2kg unga should not retail at more than Sh75,” Kiunjuri said.
Source: MediaMax Network