EXPLAINER: Why Cost Of Unga Will Be Higher After Gov’t Move On Importation
To solve Kenya’s maize flour deficit, the government has announced intentions to waive 50% of the tax on 5.5 million bags of yellow maize imported through the Ministry of Agriculture.
Agriculture Cabinet Secretary Mutahi Kagwe warned on Friday of heightened competition between animal feed millers and maize millers for human use, noting the country’s low maize grain inventories.
According to Kagwe, the price of a 90-kilogram bag of maize has risen by over 26% in the last three months due to rising demand.
The CS stated that the growing trend in maize prices has a direct influence on production costs, prompting millers to pass on the increased costs to consumers through higher maize flour pricing.
“To address this, the government will gazette a 50 per cent duty waiver for the importation of 5.5 million bags of yellow maize over one year,” CS Kagwe announced.
The agricultural minister stated that the effort would be carried out by a qualified list of animal feed millers with adequate capability.
Kagwe claimed that the goal of importing yellow maize was to relieve strain on local white maize reserves by switching animal feed millers to yellow maize.
However, the previous Health CS stressed that the yellow imported maize will not be genetically modified (GMO) grains, allaying Kenyans’ concerns.
“This will allow millers focused on human consumption to access available maize at fairer prices, ultimately leading to reduced production costs and more stable unga prices for consumers,” the CS assured.
To avoid a future maize grain crisis in the country, Kagwe urged farmers to consider growing yellow maize.
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According to the CS, this will assist meet the domestic demand of the animal feed industry, which requires more than 1 million metric tonnes yearly.
The latest development comes three days after the National Bureau of Statistics (KNBS) identified fortified maize flour as one category of vital commodities whose prices increased significantly between February and March of this year.
Year-on-year #Inflation for #Kenya in March 2025 measured by #CPI is 3.6%; due to price increase in Food and Transport @Planning_Ke @KeTreasury @CBKKenya @KRACorporate @KIPPRAKENYA @KenyaGovernors @TransportKE @kilimoKE @kenya_afa @jumuiya https://t.co/AIxuCPupLy pic.twitter.com/Jhbq8LJYDA
— KNBStats (@KNBStats) April 1, 2025
KNBS’s monthly survey report, released on Tuesday, April 1, revealed that the price of maize flour increased by 2.9% over the previous month.
The agency also named kale, potatoes, maize grain, tomatoes, beef, electricity, local aircraft tickets, and cooking gas as items whose costs had risen.
EXPLAINER: Why Cost Of Unga Will Be Higher After Gov’t Move On Importation
