Price of unga to drop to Sh90 in millers, Govt. subsidy deal

The government has created a multi billion shillings subsidy fund, aimed at lowering the cost of maize flour in the country.

The money has been re appropriated from the current budget following the steep rise in the cost of living with basic commodities being out of reach for most Kenyans.

Through the subsidy fund, the government will import and sell maize to millers at Sh2,300 per 90 kilogram bag down from the market rate of Sh4,600.

This will see the cost of a two kilogram packet of maize flour (unga) drop to an agreed price of Sh90.

A kilogram of maize flour will also drop to Sh47.

Addressing the press briefing on Tuesday, Agriculture cabinet secretary Willy Bett said at least Sh6 billion has been set aside for the program that is expected to last well into October, when the first maize harvest is made.

“We are mopping any maize through negotiated prices to get the maize, sell at subsidized price so that Kenyans can get flour at Sh90 until October,” Mr Bett said.

“We have maize that will be enough until 29th this month and we are going as the government to look for maize from Ethiopia and everywhere and will negotiate prices and subsidize for Kenyans,” he added.

The deal was reached following negotiations with millers under the Cereal Millers Association (CMA).

Already 20 millers have signed up for the program that is expected to see the low cost unga hit the retail shelves by the end of the week.

Among the firms that are participating in subsidy program are, Unga Limited, United Mills, Pembe Flour, Kitui Flour Mills, Alpha Grain Millers, Eldoret Grain Limited, Jamii Milling, Kenblest Limited and Mombasa Maize among others.

Mr Bett said the program will be in place until the country has enough maize stocks to enable the price of unga to come down.

The agriculture CS said the subsidy program would also be expanded to other basic commodities with time to tame the high cost of living.

“Similar processes will be taken for milk and sugar,” Mr Bett added.

The Agriculture and Food Authority (AFA) has announced plans to import 100,000 metric tons of sugar into the country due to the persistent shortage.