Unga on a supermarket shelf. Photo/the-star.co.ke
Prices of unga are expected to rocket again in the next few weeks as the government plans to do away with the subsidy programme in two weeks.
The price of the commodity fell to Sh90 per two-kilogramme packet since June after electorates protested its high cost bearing it is a staple food in the country.
Before the subsidy, a two kilogramme maize flour packet was retailing at an average Sh180.
Reports indicate that millers want to raise unga prices to get back to a profit making track even as the government seeks to see a smooth transition of costs.
Agriculture CS Willy Bett said that the current subsidised unga will be coming to an end. He however expressed confidence that the government would ensure Kenyans are not exploited.
He said: “We will try to ensure the transition is smooth. But the Sh90 per packet will be a thing of the past.”
The CS said prices of the basic commodity will probably stabilise at where initial rates before the rise.
He attributed the subsidy halt to the early harvest received in some parts of the country together with an expected harvest next month.
Further, the CS said the government would not want to extend the subsidy programme as it would create an excess in the market once harvests are ready which could hurt farmers from grain growing areas.
The subsidy programme saw the government allocate Sh6 billion to see Kenyans buy the commodity at Sh90 per a 2 kilogramme packet. To have it successful, the state allowed duty free importation of the commodity ahead of the August poll.
Even after it was projected to end in July, the government extended the programme as a critical deficit and low harvest indications became a reality.
The low harvests for this year have been linked to delayed rains and an aggressive armyworm invasion.