Traders turn to Uganda as Kenya grapples with cereals shortage

Low prices are increasingly pulling a number of cross-border traders to source maize from Uganda as Kenya grapples with a shortage.

Data compiled by the Regional Agricultural Trade Intelligence Network (RATIN) shows that in the last seven days alone, traders moved a total of 647 tonnes of maize into Kenya, mainly through the Busia border. About eight tonnes of maize came in through Lwakhakha and Malaba borders.

This comes in the wake of an increase in maize prices across the East African Community as the head smut maize disease continues to subdue production in Kenya.

The disease has reportedly ravaged maize farms in the country’s bread basket of North Rift, threatening up to 50 per cent of projected output. As of yesterday, a 90kg bag of maize from Uganda was retailing at Sh4,911 in Mombasa and Sh3,572 in Kisumu, a possible indicator of the effects of the head smut, which is said to be a new maize disease that has affected all varieties of the commodity.

Last week, for instance, a 90kg bag of maize from Uganda was retailing at Sh3,150 for a 90 kilogram bag in Nakuru and Sh2,696 in Machakos.

Uganda was the net supplier of maize to other EAC countries. The landlocked country supplied Rwanda with 120 tonnes of maize during the same period.

Due to inadequate long rains between March and May, the Agriculture ministry reckons that the country will rely on imports to meet its annual maize needs of nearly 40 million bags. A poor crop of Kenya’s staple food is set to exert pressure on inflation due to high maize prices, hitting the government budget because of imports of the grain to ease the forecast shortage. Reduced maize production will expose Kenyans to surging prices and inflation which has remained in the single digit range and within targets. In June, the government released a million bags of maize in efforts to tame the soaring cost of the staple but prices of maize flour are still soaring.

The National Cereals and Produce Board said it had sold about 640,000 bags of maize to millers as of last week to supplement the falling stocks that sparked a price increase.

As of last week, prices of a two kilogramme packet of flour remained the same for other brands other than Jogoo, which is currently retailing at Sh110 from Sh115.

The country is also importing a substantial amount of millet from Tanzania and Uganda, amounting to over 117 tonnes in one week.

A 90 kilogramme bag of millet retails at Sh4,465 in Nairobi and is being sold for Sh4,018 wholesale price.