Ministry differs with statistics office over record maize prices

The Agriculture ministry has taken issue with data from the Kenya National Bureau of Statistics (KNBS) indicating that a bag of maize has hit a record Sh5,751.

The KNBS data, the ministry said, does not reflect the trends in the market, raising questions on the mode of tracking agro-based commodities in Kenya.

The data shows that increased flow of duty-free and subsidised maize imports and harvests from western Kenya have done little to ease grain prices.

The data bureau on Monday said Kenyans on average spent Sh63.90 to buy a kilo of maize in July, translating to Sh5,751 for the 90kg bag.
But the Ministry of Agriculture says the average maize price in July was Sh3,800 a bag,

“Currently, maize prices are stabilising at a price ranging from Sh2,600 to Sh4,800 per 90kg bag with national average at Sh3,800,” said the ministry in its latest report on food prices.

The ministry officials termed the data putting the average price at Sh5,870 as erroneous.

Figures from the Regional Agricultural Trade Intelligence Network (Ratin) show a bag of maize in Kenya retailed at Sh5,849 on average in July.
The Ratin and KNBS prices are the average cost of buying maize in the market outside the subsidy.

These grains are used in posho mills.

The Ratin tracks agro-based prices in the region.

Traditionally, poor Kenyans have relied on flour from posho mills — which account for about 60 per cent of the staple’s supply — to lower their food costs.

The government introduced a Sh6 billion subsidy in May for maize shipped in, lowering the cost of imported bag of grains to Sh2,300 and cutting flour prices to Sh90 per two–kilo packet.

READ: 5m bags of maize imported to rein in flour prices

ALSO READ: Maize price rises to record Sh5,849 a bag despite State subsidy

Maize has a substantial influence on inflation because it is Kenya’s staple food. Inflation hit new highs this year as the two-kilo packet of flour rocketed to Sh150.

Rising prices of maize flour and other foods have become a political headache for President Uhuru Kenyatta as he seeks a second term in the next Tuesday elections.

Nasa flag-bearer in the polls, Raila Odinga is using the high costs of living to portray Kenyatta’s government as inept and uncaring.

Inflation dropped to 7.47 per cent last month on the back of falling food prices, moving within the government’s preferred range for the first time since February this year.

It peaked at 11.7 per cent in May before dropping to 9.21 in June after rains improved food supplies and the government subsidy cut the cost of the two-kilo packet of flour to an average of Sh116 from Sh153.