Thursday, May 9, 2024

Government to reduce price of unga by Sh. 2

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The price of unga is set to drop by two shillings following an intervention by the government through the Ministry of Agriculture.

According to a report that appeared in the Daily Nation on Thursday, maize millers have said that plans by Agriculture Cabinet Secretary Peter Munya to suspend all levies imposed on imported maize will only cut the price of unga by Sh. 2 per two-kilo packet.

“United Grain Millers Association (UGMA), an umbrella body of small and medium-scale millers, says the move is so insignificant that it will not have any impact on consumers,” the report in the daily said.

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A packet of maize flour is currently retailing at Sh. 210 for a two-kilo packet.

“Imported maize is levied Sh100 for a 90-kilo bag, with a single bag giving 36 packets of two kilos when milled, meaning that suspending the levies will only cut the cost by Sh. 2.7,” the report cited.

According to the report, the government charges levies that include the Certificate of Conformity fee levied by the Kenya Bureau of Standards, the phytosanitary fee charged by the Kenya Health Inspectorate Service, and the Import Declaration Fee imposed by the Kenya Revenue Authority.

CS Munya had earlier said that the current levies charged on maize were to blame for the high cost of maize flour.

“We have decided to suspend all levies imposed on imported maize by 90 days that is coming to Kenya from any border post and from July 1, no charges will be levied on maize,” CS Munya had said.

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His intervention has however been described by millers as insignificant. “The move is so insignificant, we need a serious government intervention on making the maize available in order to cut down significantly on the cost of flour,” the daily quoted UGMA chairman Ken Nyaga as saying.

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