The price of Unga is set to go up by Ksh4 after a majority of MPs pledged their support for the President's proposal for an 8 percent tax on petroleum products.
The Chairman of United Grain Millers Association Peter Kuguru stated that they revised the prices due to the high cost of production.
In an interview with The Star, Kuguru indicated they would share the fuel levy with consumers.
Agriculture Cabinet Secretary Mwangi Kiunjuri
The association had initially set the increment at Ksh8 but revised it downwards after the President also halved the initial 16 percent VAT proposed by the Cabinet Secretary for Treasury Henry Rotich
Former Cereal Millers Association Chairman Nick Hutchinson revealed to Parliament that they had run out of stock and were heavily relying on imported maize.
This contradicts the report by the Agriculture Cabinet Secretary Mwangi Kiunjuri that Kenya was expecting an increase in maize harvest this year.
“We are expecting 46 million bags up from the last season’s figure of 40 million bags. The bumper harvest will give us the advantage of having maize and even enable us to stabilise maize prices in the country,” he claimed.
He added that he had discussed pricing with millers-that way, mill owners would not take advantage and increase the prices.
However, maize worth Sh8 billion in the National Cereals and Produce Board (NCPB) stores risks going bad unless it is urgently sold. NCPB acting Managing Director Albin Sang told Senators that part of the 3.6 million bags of maize in their silos had started yellowing and would go to waste if not moved out.
National Cereals and Produce Board Director Albin Sang addressing Parliament
“We have also not been given the go-ahead to sell the maize which has stayed for more than the required six months,” revealed the NCPB boss, adding that although the maize has changed colour, it is still good for consumption.
