Cheap unga? Not so fast, say millers amid price puzzle

Ugali lovers across the country will have to wait a little longer to enjoy the cheap maize flour that President William Ruto promised will hit the shelves this week.

One of the reasons for the delay is that retailers stuck with expensive stocks are reluctant to reduce prices unless they secure a commitment from their suppliers through credit notes on how they will be compensated.

Retailers are also hesitant to restock, which could signal looming shortages until there is price stability. Nation has established that maize flour prices in supermarkets and shops have not dropped, despite Dr Ruto’s assurance that a two-kilo packet will retail at about Sh150 this week.

Days after the President’s announcement, a spot check by Nation showed that prices remain unchanged for most of the brands. This also flew in the face of claims by State House Spokesperson Hussein Mohamed, on Monday, that prices had been reduced.

Taking to Twitter, Mr Mohamed claimed that prices have dropped to between Sh159 and Sh160, depending on millers.

"Unga prices have started going down just as President Ruto had assured Kenyans over the weekend. Prices have dropped to Sh159 and Sh160, depending on the millers. When the President assumed office last year, a 2kg packet was retailing at approximately Sh230," he tweeted.

Read: Why you’ll soon dig deeper into your pockets to put ugali on the table

President's pledge

Speaking in Machakos on Friday last week after launching the Mavoko Water Project, the President announced that prices of maize flour were to be lowered by this week. In Nairobi County, the cheapest price for maize flour we saw was Sh159.

A spot check along Thika Road showed that the cheapest price for a packet of maize flour was Sh166 while the highest was Sh269. 

At one supermarket, only the prices of Ajab and Umi brands had dropped, both by about Sh50. In informal settlements, however, Kenyans are purchasing their flour at higher prices. In Mukuru kwa Njenga, the cheapest brand is retailing at Sh195 while the highest is Sh230. In Mathare North, the cheapest is Sh192, while the highest is Sh230.

In the city centre, the cheapest brand as at yesterday retailed at Sh159, with the highest going for 262. 

In Nakuru City and neighbouring towns yesterday, supermarkets were yet to reduce the prices of maize flour. Nation independently established that, in rural and far-flung areas, the prices were higher by between two or five shillings, with most shoppers expressing fury over the unchanged prices despite the President’s announcement.

“Why should the President play politics with a sensitive issue like the cost of living? Was the President’s announcement just another political gimmick? The government needs to get serious on matters of the high cost of living,” said Mr George Kinuthia, a resident of Whitehouse Estate in Nakuru City.

At Naivas Midtown branch in the city centre, Ndovu is retailing at Sh182, Dola at Sh199, Jogoo at Sh200, Soko at Sh207, Pembe at Sh208, Hostess at Sh231, Amaze at Sh243 and Raha at Sh258.

At Woolmat, Ajab costs Sh165, Beada and Joymax Sh190, Dola Sh200, Soko Sh207, Hostess Sh235, Raha Premium Kavagara Sh250 and Afya Sh285.

At Cleanshelf, the 210 brand costs Sh195, Ajab Sh167, Jogoo and Pembe goes for Sh200, Hostess Sh230, Raha Premium Kavagara Sh 241 and Amaze Sh237.

In various outlets in Narok County, the pain of expensive maize flour has not eased. At Naivas Supermarket in Narok town, for instance, the price of unga ranges between Sh147 and Sh262, depending on the brand.

The cheapest is Ajab at Sh147, followed by Dola (Sh199), Jogoo (Sh205) and Pembe and Soko at Sh207. Others are Hostess at Sh231, Amaze at Sh243 and Raha Premium Kavagara at Sh262.

“We are yet to lower the prices, but we have a few traders selling the commodity at between Sh170 and Sh180 as a marketing strategy to attract buyers,” revealed a shopkeeper in Utawala on the outskirts of Nairobi.

In the Western region, residents are yet to begin enjoying the cheap maize flour. Spot checks in Vihiga, Bungoma, Busia and Kakamega counties revealed that prices largely remain unchanged.

Read: Lower consumer prices no panacea for mass suffering

In Vihiga County, a 2kg packet was trading at between Sh200 and Sh220, depending on the brand. Jogoo and Ajab brands were the most expensive, selling at Sh220 while the other brands retailed at Sh200 and Sh210.

In Kakamega Town, the cheapest brand was Ajab, selling at Sh167 at the Mama Watoto Supermarket. At the QuickMart Supermarket, the Dola brand was going for Sh212, Jogoo Fortified Sh212, Soko Sh213, Amaize Sh243 and Hostess Sh222.

The price for a 2kg packet of Jogoo at Yako Supermarket was Sh202, Jembe Sh193, Dola Sh199 and Bahari Sh199.

In Kisumu City, the price of a 2kg packet ranged between Sh193 and Sh245. At Carrefour, Soko brand was the cheapest while Jambo was retailing at Sh245.

Dola and Soko were going for Sh198 and Sh193 respectively at the supermarket. At Quickmart, Pembe was being sold at Sh208, Soko (Sh213), Dola (Sh212) and Jogoo (Sh202).

In Homa Bay town, the situation was the same with traders saying they are yet to be supplied with the cheaper flour. At Shivling Supermarket, prices ranged between Sh203 and Sh214. Shivling manager Rocky Patel, who said he is yet to be supplied with the cheaper flour, noted that"prices will stay the same, between Sh200 and Sh215" for the time being.

Dry maize option

Residents are opting to buy dry maize and have it ground in posho mills. This option, said Mr Dickens Ochieng, is cheaper than buying flour from the shops.

"A 2kg tin of maize costs Sh180 including the cost of processing it. This is cheaper than the Sh200 that I would have spent in the shop," he said.

It is a sentiment echoed by Siaya residents, where packed maize flour is retailing at between Sh220 and Sh235. 

"Instead of spending Sh220 on a single 2kg packet, I instead buy a tin of maize and grind it. A 2kg tin of dry maize retails at Sh160 and processing is Sh15," said Ms Gorrety Awino in Siaya Town.

In Kisii town, the prices of Jogoo, Dola and Pembe brands were selling at Sh205, Sh207 and Sh199 respectively for a 2kg packet at Naivas Supermarket.

A worker who requested anonymity said the supermarket had not received any communication from its head office to lower the costs.

In Samburu County, Nation established that unga prices remain unchanged. In Maralal, Raha Premium Kavagara is selling at Sh270, Soko (Sh220), Jembe (Sh200) and Ajab (Sh205).

In the North Rift, a 2kg packet of unga in Kapsabet and Nandi Hills towns in Nandi County is selling at Sh220 with traders saying they have not received any cheaper maize flour as promised by the government.

Consumers' disappointment

Consumers have, however, been flooding retail shops with the hope of finding cheaper maize flour. In Eldoret, Uasin Gishu County, a 2kg packet of various brands was still retailing at between Sh189 and Sh208.

Mr Francis Mberia, a manager at a local supermarket in the agricultural town, said they are to receive credit notes from millers to enable them to lower prices.

"We still have stocks worth thousands of shillings. Our prices will remain the same until millers come to audit the stock and sign credit notes that will signify the price cuts in case of a subsidy from the government," he said.

At Chieni Supermarket in Nyeri, Manager Charles King’ori said prices will only decrease after the issuance of a directive from suppliers. Such a directive, he said, would compensate retailers who are currently selling stock they bought at the old prices.

Read: Different contracts for millers in unga subsidy shocks MPs

“Suppliers have to give us a credit note explaining how we shall be compensated if we agree to lower prices,” Mr King’ori said.

Mr Mberia said they had not run out of stock but there has been a minimal drop in prices.

In Kabarnet, Baringo County, prices in supermarkets were unchanged, with the commodity still trading at Sh210.

The situation was the same in Lodwar town in Turkana County, where a 2kg packet was retailing at Sh210 (Johari), and Sh220 (Mfalme).

In Kitale, Trans Nzoia County, the management at Khetias Supermarket said they are waiting for a circular by millers before they effect new prices.

Other wholesalers in Kitale town said they were not aware of any price reduction for the commodity. 

In Nyandarua and Laikipia counties, the prices ranged between Sh191 and Sh230.

In various supermarkets and retail shops in Kiambu County, shoppers continued to purchase the commodity at high prices. For instance, at Naivas Supermarket in Thika town, a 2kg packet of Ndovu maize flour was by yesterday evening going for Sh189 while Jogoo was selling at Sh208, Ajab (Sh199) and Pembe (Sh208).

Other brands including Dola, Raha Premium Kavagara, Soko, Hostess and Taifa were selling for between Sh198 and Sh262.

In Kilifi County, a 2kg packet was selling between Sh185 and Sh200.

By Monday, unga was still being sold at high prices in most parts of the Mt Kenya region.

In Murang'a County, a 2kg packet of maize flour was retailing at between Sh175 and Sh235 depending on the brand.

Spot checks in Meru and Tharaka Nithi counties revealed that maize flour prices had not dropped.

In Nyeri County, prices for some brands had reduced slightly, with the cheapest 2kg packet going for Sh180 down from Sh200.

The most expensive 2kg packet of maize flour was going for Sh250 in the town.

Retailers also told Nation that the price uncertainty had prompted retailers to scale down on their stocks.

"This has induced a stocking panic since no wholesaler or retailer would fancy replenishing stock at the moment lest the new prices find us with unsopld stock," said Murang'a General Merchandise and Retailers Union chairman John Nduati.

Reporting by Mercy Chelangat, Eric Matara, Rushdie Oudia, Robert Kiplagat, Mercy Koskei, Winnie Atieno, Benson Amadala, Fred Kibor, Lucy Mkanyika, Geoffrey Ondieki, Wycliffe Nyaberi, Tom Matoke, Evans Jaola and Florah Koech, Derrick Luvega, Kassim Adinasi, George Odiwuor and Maureen Ongala