The maize flour price will soon drop after Kenya entered a deal to import maize from Uganda.
The county will be importing 6.6 million bags of maize at Sh2,050 each, from Uganda to cover a deficit that has triggered a rise in flour prices. A 2 kg bag of maize is currently retailing at between Sh 105-150 depending on the variety of the flour. The same product was retailing at Sh 90 after the government decided to import more maize from Mexico.
The National Cereals and Produce Board (NCPB) has decided to enter into a deal with Uganda after realizing that the country did not produce enough maize in last year due to unfavorable weather. The few yields in the depots cannot meet the demand of the product.
“The deal is between Grain Council of Uganda and the Cereal Millers Association and was brokered by the Ministry of Industrialisation, our role was to bring together the two bodies by acting as the intermediary party,” said NCPB managing director Newton Terer, as quoted by Nation Media.
This deal between Grain Council of Uganda and the Cereal Millers Association of Kenya will however impact negatively to maize farmers in Kenya, who are hoping to sell their maize at higher prices.