Kenyans will continue to wait for cheap flour after it became apparent that the government’s efforts to get inexpensive maize was being hampered by a lack of the grain on the world market.
The Sh4,200 per 90-kilogram bag that the government had given to maize importers as the landing price under a tariff waiver is being reviewed, according to negotiations started by the Ministry of Agriculture with traders.
According to Harsame Kello, principal secretary for agriculture, it has become challenging for traders to acquire affordable maize because of fierce rivalry from neighbouring African nations, such as South Sudan, which is providing higher pricing.
“Importers failed to match the price that the market is demanding out there because of a scarcity in the world market, we are now negotiating on a new price with the traders,” said Mr Kello.
The price of maize per tonne on the international market is $420 (Sh55,440), which translates to Sh5,000 for a 90-kilogram bag once it lands in the nation, placing traders at a decision point regarding importation.
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A bag of corn costs Sh6,000 locally, but when logistics like handling and transport are taken into account, imports will arrive in Nairobi for virtually the same price. There have only been two ships carrying white maize to port at the Port of Mombasa since the tax waiver went into force in February.