Linturi Explains Why Unga Prices For Select Brands Dropped

Agriculture Cabinet Secretary (CS) Mithika Linturi on Tuesday, April 18 addressed the significant reduction of maize flour but only within select brands compared to previous reports of a general reduction in the cost of unga.

Speaking to Citizen TV's Waihiga Mwaura, Linturi singled out the Umi maize flour and Ajab wheat flour brands under the ownership of Munir Thabit, the Chief Executive Officer (CEO) of Grain Industries Limited (GIL), brands which were revealed by State House Spokesperson, Hussein Mohamed, to be retailing a two-kilogram packet of flour at Ksh159 after intervention from the government.

He explained that the brands had benefited from permits issued by the government to millers for maize to be imported into the country as a means of reducing the cost of the staple food.

"I want to ask the millers out there that they need to lead by way of example, that they need to learn from a good miller like Umi and Ajab because if you remember what I said sometimes back and what we have been saying out there is that the government has all through been very committed towards the reduction of the cost of unga in the country.

Side-by-side image of select Unga brands shared by Government Spokesperson Hussein Mohammed. /TWITTER.HUSSEIN MOHAMED

"The government has gone ahead in proposing to lose revenue by way of importing duty. We have given permits for 1.4 million metric tonnes of maize which is supposed now to be getting into the country which will essentially give unga. Ajab is selling its unga at below Ksh170 because it was one of the beneficiaries of the permits that we gave to millers to bring in maize," he said.

Accordingly, Linturi noted that it was Ajab's consignment which started to arrive, which prompted the brand to reduce the cost of its unga. He added that he had summoned the rest of the millers for a meeting to address issues regarding importing their consignments into the country.

"I have called all of the maize millers who are beneficiaries for a meeting on Friday because whatever revenue the government is going to lose by way of import duty must be reflected in the reduction of the price of that commodity in the market," he said.

"I think Ajab's consignment has started coming in and that is why it has moved very fast to bring down the cost of unga. I will call other millers to know when they will bring their consignments. They might have problems in raising the money required to import the maize or raising certain instruments for foreign trading but I will know for certain on Friday."

With the permits to import the duty-free maize expiring in August, a month when local maize farmers reap their harvests, Linturi added that millers who applied for the permits but won't have brought in the commodities by then will risk having their import licenses revoked.

"This is why I am calling the importers this Friday. I want to give them notice so that they can understand that if they are late in the delivery of commodities then it will not be good for them," said the CS.

"I will finally end up cancelling their permits, immediately there are signs that my farmers are harvesting the maize that we've been trying to support them to grow."

On Monday, April 17, Hussein paid a visit to a local supermarket and took photos of select maize flour brands and their prices, ranging between Ksh159 and Ksh167.

He expressed that Kenyans would enjoy the new unga prices advertised by select brands as part of Kenya Kwanza's major promise to lower the cost of living.

"Unga prices have started going down just as President William Ruto had assured Kenyans over the weekend. Prices have dropped to Ksh159 and Ksh 160, depending on the millers.

"When the President assumed office last year, a 2kg packet was retailing at approximately Ksh230," Hussein shared on Twitter.

ICT Chief Administrative Secretary (CAS) Dennis Itumbi earlier announced that unga was ranging between Ksh155 and Ksh160, faulting the previous government for spending billions monthly on subsidies that lowered the cost of unga to Ksh100.

Kenyans however raised a series of questions regarding why the prices of the other brands were not affected just like Ajab, with spot checks by Viral Tea on an online store of a popular supermarket revealing that the price of unga, for one of the brands, was retailing at up to Ksh240 per 2kg, though other brands are selling their 2kg packets at Ksh199 each and Ksh189 each.

Speaking on Friday, April 14 during a rally in Mavoko, Machakos County, President Ruto stated that imported maize will be expected to arrive in the country before the end of the week, which would result in a lowering of unga prices for a 2kg packet from Ksh180 to Ksh150.