After Suspension Of Levies, Maize Flour Prices Reduce By Ksh 2

According to Kenyan millers, the anticipated suspension of duties on imported maize will lead to a Ksh 2 drop in flour prices.

On Tuesday, June 28, Peter Munya, the cabinet secretary for agriculture, declared that the government would release an order on Thursday postponing the levies that would cut the cost of flour.

The United Grain Millers Association (UGMA), a group that represents both small- and large-scale millers, claims that the change is inconsequential and won’t have much of an effect on customers.

According to UGMA chairman Ken Nyaga, who was reported by Business Daily, “The move is so tiny we need a real government intervention on making the maize available to considerably lower on the cost of flour.”

In order to import maize, Mr. Nyaga further asked the government to start direct negotiations with other nations, stating that they are presently Kenya’s source markets.

“The price of maize will come down and this will effect the cost of the final product,” he said. “If we can have direct government dialogue to eliminate export permit tax.”

One bag of imported maize weighed 90 kilograms and cost Ksh 100 because it produced about 36 2 kg packages.

Currently, a 2kg packet costs at least Ksh200, thus with the levy relief, a packet will only cost Ksh198.