Sh90 maize flour to be in the shops beyond October deadline

Traders have imported 1.1 million bags before closure of the four-month maize import subsidy plan, signalling that the sale of the Sh90 flour will continue beyond the October deadline.

The Ministry of Agriculture Wednesday said three ships carrying the last batch of the subsidised maize have docked at the Port of Mombasa and flour is expected to land in the shop shelves in the second week of November.

This means consumers will still access the subsidised Sh90 two-kilo packet after the end of October deadline.

READ: Maize flour prices to hit Sh120 as subsidy ends

Treasury ended the subsidy, which started in May 16, in mid-October and expected the steady flow of the cheap flour to the end of this month when the cost of the staple is expected to increase to Sh120 a packet.

Last consignment

The Ministry of Agriculture said the latest three ships mark the last consignment under the subsidy programme.

“Three ships carrying the last batch of maize under the subsidy programme have docked in Mombasa and the process of discharging the cargo has just started,” said the Agriculture ministry, adding that the ships have 1.1 bags of maize.

The maize cargo is equivalent to Kenya’s consumption for 11 days, suggesting it could last to November 16 should it land on the shelves on November 6.

This is based on millers’ estimates.

However, the ongoing rains in Mombasa have slowed the evacuation of the maize from the ships.

Expect harvests

Officials expect harvests from western and the Rift Valley to boost maize supply and ease the biting shortage that prompted Kenya to turn to imports.

The country on May 16 announced a Sh6 billion subsidy on maize imports to help lower the cost of flour which had shot up largely due to drought and poor planning.

The subsidy lowered the price of a 90kg bag of maize to Sh2,300 from above Sh4,000 with taxpayers offering importers a rebate or the difference of about Sh1,700.

The end of the subsidy and the government setting the price at which it will buy the grain from farmers at Sh3,200 a bag, will lift flour prices.

Market prices

Millers will revert to the market price of maize, which will influence the purchase of the grain by the government to replenish the strategic reserves.

READ: Maize farmers say flour subsidy to destabilise market

Millers say the cost of getting the bag from farmers to mills will push the cost to Sh3,400 when transport costs are factored in, forcing them to increase flour prices by Sh30 from the current Sh90.