The average retail price for a two-kilo packet is now Ksh160 on average, down from a peak of Ksh200 in August, providing relief to many households struggling with the high cost of living.
The North Rift, which is a major maize production region in Kenya, has been harvesting the main crop since September. This has led to a reduction in the cost of a 90-kilo bag of maize, resulting in lower flour prices.
A bag of maize is currently selling for Ksh4,500, compared to the higher price of Ksh5,800 at the beginning of the year as more stocks enter the market.
“The declining prices are a response to the reduced cost of maize procurement, which now stands at Ksh4,000 per bag,” stated Rajan Shah, the CEO of Capwell Industries.
Maize is a staple crop in Kenya, and a decrease in its price is beneficial for low-income earners and is likely to impact inflation positively.
The price of maize had reached a peak of Ksh6,000 at some point last year, leading to a historic high of Ksh250 for a two-kilo packet of flour.
Due to the high cost of this staple, the government had opened a duty-free import opportunity for traders to alleviate prices.
However, these businesses couldn’t secure enough imports to address the local deficit, primarily due to a global grain supply shortage caused by the Russia-Ukraine conflict.
This year, the country expects a significant harvest due to favorable weather conditions and the provision of subsidised fertiliser to farmers.
Under the subsidy scheme, the government has reduced the price of a 50-kilogram bag of fertiliser from Sh6,000 to Sh2,500 to support farmers.
This initiative aims to reduce imports and promote self-reliance in food production within Kenya.
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