Costly ugali looms after Uhuru order

President Uhuru Kenyatta. PHOTO | PSCU

By GERALD ANDAE
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Summary

• President Uhuru Kenyatta has set the stage for expensive ugali with the directive to the Ministry of Agriculture that will ensure farmers sell their maize at Sh2,500 for a 90 kilogramme bag.
• Mr Kenyatta in a statement on Monday urged the ministry to make sure that this price is enforced to increase farmers earnings.
• Maize forms the largest component of expenses involved in flour milling, accounting for 80 percent of the total cost.

President Uhuru Kenyatta has set the stage for expensive ugali with the directive to the Ministry of Agriculture that will ensure farmers sell their maize at Sh2,500 for a 90 kilogramme bag.

Mr Kenyatta in a statement on Monday urged the ministry to make sure that this price is enforced to increase farmers earnings.

Maize forms the largest component of expenses involved in flour milling, accounting for 80 percent of the total cost.

“I direct that the recommended minimum maize selling price by the farmers to be Sh2,500 per 90 kilo bag and require that ministry enforces these prices,” said Mr Kenyatta.

The announcement comes at a time when the cost of maize had started coming down and so is the flour, following the onset of harvesting in some parts of the country.

A 90 kilo bag had come down from a high of Sh2,800 in the last two months to Sh2,100 currently. The cost of flour in retail outlets has dropped to Sh115 on average for two-kilo packet.

Mr Ken Nyaga, chairman of the United Millers Association, which controls 60 percent of the flour market in the country, said the move by the president will have a negative impact on consumers.

Mr Nyaga said the Mr Kenyatta should have looked at the interest of consumers to protect them from high cost.

“As much as the president wanted to cater for the interest of farmers, he should have also considered the consumers because they are the ones to bare the huge burden in cost that will be passed to them,” said Mr Nyaga.

Mr Kenyatta also issued other directives aimed at safeguarding farmers and enhance their income. The measures include lowering of the drying and storing charges at the National Cereals and Produce Board (NCPB) depots.

“To ensure that our farmers are able to dry and sell their maize with minimal post-harvest losses, I direct that the maize drying charges at the NCPB be reviewed downward by 50 percent, from the current Sh40 per unit drop to Sh20,” he said.

He said the government will also make sure that maize driers are made available to all maize growing areas in the coming season. The driers will be community- based and managed by a group of farmers/cooperatives.