NAIROBI, Kenya, May 25 – Kenya Association of Manufacturers (KAM) has raised concern over a looming food crisis should the ongoing shortage of maize and wheat in the country persists.
In a joint statement issued alongside Cereal Millers Association (CMA), Association of Kenya Feed Manufacturers (AKEFEMA), Eastern Africa Grain Council (EAGC), the bodies warned that the shortage will push up the prices of these commodities and subsequently, worsen inflation.
The statement was also issued by the Agro-Processors Association of Kenya (APAK), Grain Belt Millers and Farmers Association (GBMFA), Agriculture Sector Network (ASNET) and United Grain Millers Association (UGMA)
The Kenya National Bureau of Statistics (KNBS) has attributed the rise in inflation to the increasing prices of food items.
According to KNBS, the year-on-year inflation increased from 5.76 percent in April 2021 to 6.47 percent in April 2022.
During the same period, the price of maize went up from Shs 2,850 in 2021 to Shs 4,200 in 2022 – a 47 percent increase, mainly caused by persistent drought and reducing maize inflows from EAC cross border trade.
On the other hand, the price of wheat rose from KShs 3,800 in 2021 to KShs 6,000 per 90 kg bag in 2022.
In addition to this, the high and volatile international prices have resulted in unprecedented retail prices.
A 2kg packet of maize flour is currently retailing at approximately Kshs 155-165, whereas that of wheat is Kshs 185-195.
While farmers are set to gain from the current supply-side prices driven by inflation, consumers are exposed to the extremely high costs of products manufactured from imported maize and wheat.
