Maize flour popularly known as Unga among Kenyans will soon be out of stock. This is after a discovery that retailers have a shortage of the Sh90 maize flour. This could be mainly be because of the maturity period of the six-month that was set for the  import subsidy, setting the stage for a rally in flour prices

The Agriculture secretary Willy Bett said that the Sh6 billion subsidy was only to last for 6months until 31 December and cannot be extended further.

Most of the Top retail shops such as Naivas, Choppies and Tuskys have given an alert that  they are clearing all their old stocks of the Sh90 flour, warning that flour prices would rise from tomorrow on Monday.

Most Millers have already started buying maize at a cost of between Sh3, 200 and Sh3,400 for the 90kg bag and this might definitely force them to increase flour prices by at least Sh20 even though most of them says that it’s very hard for them to determine the prices and will let the market demand and forces determine the price.

The government on May 16 announced Sh6 billion subsidy on maize imports to help lower the cost of flour from the highest price ever registered at Ksh 170 Which shot up due to the drought experienced early last year and poor planning and management.

This subsidy led to a sharp decline in the price to a cost of 90kg bag of maize to Sh2,300 from above Sh4,000.

The subsidised flour prices  received alot of  back up even as far as by The Kenya Gazette with a notice that any increase in price above Sh 90 is illegal and thus a criminal thing to engage in.

The prices of Maize Flour are likely to go as far as Sh 110 with a bag of Maize going for Sh 3400.Its therefore important that people make prior arrangements and purchases before tomorrow.

With such huge changes in the economy ranging from price increase of flour, high Electricity bill and water decline we can only hope that the situation will change otherwise it seems this will be a tough economic year.

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