Reprieve for the poor as maize meal price cut

• New brand of flour to be sold in slums for Sh26 a kilo after deal struck to avert crisis

A new brand of maize flour is to be sold to the poor as part of the Government’s effort to bring down the cost of the staple food.

The new brand will cost Sh26 per kilo. However, the other brands will sell at Sh72 for a 2kg-packet, down from an average of Sh98.

The new prices are expected to become effective next week.

While supporting the new prices, Prime Minister Raila Odinga said this was the best deal they could get for Kenyans.

He said the prices were negotiated and not forced on the millers.

“We must therefore secure the interest of both farmers and the consumers . . . that is why we settled for these rates,” he said.

Smaller packages

The new brand to be sold in poor neighbourhoods will be in packets of five and 10 kilogrammes, raising the possibility that those who buy it will have to resell it in smaller packages to make it more affordable to poor families.

Farmers are also set to benefit after National Cereals and Produce Board was directed to buy a 90-kg bag of maize for Sh1,950. Previously, the same bag cost Sh1,700.

According to Agriculture minister William Ruto, the new maize meal brand will be of the same quality as the other regular brands.

Millers also agreed to dedicate between 30 per cent and 40 per cent of their milling capacity grind the new brand for the National Cereals and Produce Board.

They will charge the board Sh200 to mill a 90-kilogramme bag of maize. Under this arrangement, 15,000 bags of maize will be milled per day.

Mr Ruto described the agreement as “the best deal” the Government could get.

Following the agreement between the Government and millers, the Agriculture ministry will now release 1.2 million bags of maize from the strategic reserve held by the cereals board. It will also authorise the importation of five million bags by accredited dealers to recover the stock.

The maize will be sold to millers at Sh1,750 for a 90-kilogramme bag.

The deal was reached after three days of consultations after the rising cost of maize flour, which is used to make the staple Ugali meal, rose to a high of Sh120 a week ago from a low of Sh48 in December last year.

According to Mr Ruto, the ex-factory price for a 2kg packet of regular brands of maize flour will be Sh65. Supermarkets and other retail outlets will then be expected to sell the same brands at Sh72.

Earlier in the morning, the Government and the millers had failed to reach a compromise on the price of the staple, forcing the meeting to be adjourned.