Ruto Faces New Hurdle in Bid to Lower Unga Prices

President William Ruto signing of the Condolence Book for Her Majesty Queen Elizabeth II at the UK High Commissioner’s Residence, Muthaiga, Nairobi County.
President William Ruto signing of the Condolence Book for Her Majesty Queen Elizabeth II at the UK High Commissioner’s Residence, Muthaiga, Nairobi, on Wednesday, September 15, 2022.
Photo: PSC

Kenyans are still walking in uncharted waters with confusion marring the Executive Order issued by President William Ruto that directed fertiliser prices to be lowered from Ksh6,500 for a 50-kilogram bag to Ksh3,500. 

The wait for lower Unga prices will thus continue as maize farmers cautioned Ruto against dictating the product's market rates based on the subsidized fertilizers.

While making their argument, the farmers argued that the low-cost fertilizers were released towards the end of the current planting season and had no impact on reducing the cost of maize. 

The crop growers instead want the government to buy a 90-kilogramme bag of maize at Ksh5,000 with the harvest season fast approaching. 

Maize flour stocked at a supermarket in Kenya
Maize flour stocked at a supermarket in Kenya.
File

They further stated their advice accounts for the high costs of producing raw maize, factoring in the exorbitant fertilizers they purchased at Ksh6,500 a bag.

Currently, the cost of a bag of maize recommended by the  National Cereals and Produce Board (NCPB) is Ksh3,000. However, with the current maize shortage, farmers may have an advantage on the negotiation table.

The more-than-double prices are expected to have a ripple effect on the final shelf prices as millers may not compromise on making a profit. Nonetheless, farmers noted that the subsidy was not in vain.

However, they welcomed Ruto's decree and assured the nation that farmers who ditched the cereal for more lucrative crops will venture back into maize farming owing to the lower cost of production.

"Lowering the amount from Ksh6,500 to Ksh3,000 has motivated farmers and this will increase the basket next year," their representative lauded Ruto.  

During his inauguration, Ruto rejected financing the maize subsidy initiated by his predecessor, Uhuru Kenyatta.

His sentiments were reiterated by Deputy President Rigathi Gachagua, who claimed that the money set aside for the subsidy benefitted a few individuals.

"We will not pay bills without verification. They are telling us they have pending bills of Ksh8 billion yet nobody ever saw the Unga," he stated.

Currently, a 2kg packet of maize flour retails at between Ksh200-220. Millers explained that the demand was higher than the supply, adding that they were forced to import the raw material from neighbouring Tanzania.

On September 7, Tanzania, however, halted the distribution of new maize export permits compounding the crisis. 

President William Ruto and his deputy Rigathi Gachagua during their inaugration on September 13, 2022.
President William Ruto and his deputy Rigathi Gachagua during their inauguration on September 13, 2022.
Kenyans.co.ke