Kenyans consume a total of three million bags monthly and the latest consignment can hardly last a week.
Kenya has been banking on the imports to lower the cost of the staple from the current Sh144 per two-kilo packet.
The Treasury is working on supplementary budget to curb rising food prices, but declined to offer details on whether there will be tax cuts or subsidies to lower costs.
Millers have warned that the consignment of 335,000 bags of Mexican maize Kenya received on Tuesday is unlikely to bring down the prices of maize flour, terming the imports inadequate.
The government has been banking on the imports to lower the cost of the staple from the current Sh144 per two-kilo packet.
The rising cost of food has become a campaign issue for President Uhuru Kenyatta, who is seeking a second term in the August elections.
“The maize imports are intended to increase the maize stocks in the country and subsequently lower the price of unga,” the government said in a statement on Thursday.
But the millers’ lobby maintained it was too soon to celebrate, arguing that the Mexican maize consignment is not sufficient to stop ongoing price inflation.
“It is important to note that only a small number of millers will have access to maize from the first vessel; the majority of millers will continue to purchase from the market,” the Cereal Millers Association (CMA) said.
“The CMA does not expect maize flour prices to stabilise until adequate imported grain stocks are distributed across all the mills, which is expected to be in late June/early July. When this happens, prices are expected to settle at between Sh125 and Sh135 per 2kg packet level.” Kenyans consume a total of three million bags monthly and the latest consignment can hardly last a week.
Mexican maize landed at between Sh3,500 and Sh4,400 for a 90kg bag, compared to the prevailing market cost of Sh4,750. A fresh consignment will dock at the Mombasa port on May 28.
The Treasury is working on supplementary budget to curb rising food prices, but declined to offer details on whether there will be tax cuts or subsidies to lower costs.
Tax measures in the March budget, including removal of import duty on maize and release of cheaper grains from the strategic food reserve, has failed to make significant price cuts.
A supplementary budget allows the government to spend or raise extra funds outside the annual budget cycle.
Sugar, maize flour, beans and the Sukuma Wiki vegetable prices have increased 21.6 per cent, 31.2 per cent, 21.3 per cent and 63.2 per cent respectively over the past year.
High cost of food saw inflation jump to 11.48 per cent in April from 10.28 per cent the previous month, taking it beyond the Treasury’s preferred upper limit of 7.5 per cent. The cost of living measure is at a 57-month high.
President Kenyatta — who is seeking a final five-year term —acknowledged the problem of high food prices this weekend.
Opposition leader Raila Odinga has criticised the government for raising taxes and failing to boost food production.
The price jumps are partly caused by drought that has left around 2.7 million people are in need of food aid.
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