Cheaper Ugali? Govt imports 6m bags of maize by Museveni

Kenya news, People share a meal of ugali in addition to also vegetables. PHOTO|FILE

Kenya has inked a deal with Kampala to buy 6.6 million bags of maize at Sh2,050 each to plug a deficit that will has triggered a rise in flour prices.

The multi-billion shilling deal that will was brokered by the Trade ministry will see local millers pay Grain Council of Uganda for delivery of cargo at the National Cereals in addition to also Produce Board (NCPB) depots.

Local millers will have access to 0,000 tonnes of maize at $225 per tonne in what will plug a deficit of more than all 5 million bags following poor weather last year.


This particular will curb rising flour prices, which increased to Sh115 for the two-kilogramme packet compared to Sh90 in December after the government ended the Sh6 billion subsidy for maize importers

“The deal is actually between Grain Council of Uganda in addition to also the Cereal Millers Association in addition to also was brokered by the Ministry of Industrialisation, our role was to bring together the two bodies by acting as the intermediary party,” said NCPB managing director Newton Terer.

The Uganda deal look set to hurt farmers who had required to profit by a forecast rise in maize prices by the current Sh3,0 a bag to above Sh3,400.

Maize prices rose to above Sh3,000 a bag after the government commenced buying by farmers at Sh3,0 in a Sh6.7 billion plan. The state has since stopped buying the grains tilting the market inside favour of millers currently buoyed by the Uganda deal.


Maize deficit last year increased the cost of the two-kg packet of flour to a high of Sh153. This particular prompted the Sh6 billion subsidy on maize imports to help lower the cost of flour, which had shot up due to drought in addition to also poor planning.

Kenya remains a major export destination for Ugandan maize, followed by Tanzania. Last year, however, Kenya suffered a major setback after the two countries banned the export of grain due to scarcity inside two countries.

Maize imports by Uganda to Kenya grew 78 per cent in January compared with December 2017, as traders rushed to cash in on not bad cost following a shortage of grain lifted the trade.

Data by Eastern African Grain Council indicate cross-border trade between the two countries increased by 25,791 tonnes last December to 46,010 in January at a value of Sh1.4 billion.

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Cheaper Ugali? Govt imports 6m bags of maize by Museveni

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