NAIROBI, Kenya July 22 – Traders are seeking more than Sh175million from the government to cover the reduction of the cost of maize flour to Sh100.
In a statement, the traders through the Retail Trade Association of Kenya(RETRAK) said that by close of business on July 20, before the cost of unga was reduced, they were holding unsold stocks amounting to more than 750 tonnes.
“While the new price tags are affixed, we have commenced engagements with the respective maize meal suppliers to recover more than Sh175 million, which is a cumulative estimate of the higher price earlier paid to them to facilitate deliveries,” said Wambui Mbarire, CEO RETRAK.
Mbarire noted that fast-moving commodities such as Unga are paid for in advance by retailers or in very thin credit terms which do not exceed 14 days.
President Uhuru Kenyatta on Wednesday announced new stimulus measures to cushion Kenyans against the high cost of living, among them reducing the cost of a 2-kilogram packet of maize flour to Sh100 down from an average of Sh205 following talks with millers.
Many traders including major retailers to shopkeepers were caught unawares by Uhuru’s directive exposing them to losses in the millions of shillings from holding old stocks.
“We are optimistic that our engagements with the government will bear fruit, and retailers will recover these amounts as rebates or credit notes to facilitate smooth service delivery to our esteemed customers,” said Mbarire.
A spot check by Capital FM on Thursday revealed commotions in supermarkets and other retail outlets as Kenyans rushed to purchase the commodity after prices were lowered.
In the capital Nairobi, various supermarkets limited the number of purchases to a maximum of 2 or 4 packets.
“We should be allowed to buy the number of packets we want. Why are they limiting the purchases?” said Tom Otieno, a shopper at Naivas supermarket on Moi Avenue.
In some outlets countrywide, there was a shortage of the commodity.
“I don’t know what is happening because there is no Unga in the shelves,” said Marion Njeri, who spent one hour waiting for the commodity, “the queues are too long and Unga is getting finished as soon as bales are opened.”
Some supermarkets for instance Naivas Moi Avenue opted to assign some of their staff to specifically deal with issuing unga packets to shoppers, as part of measures to limit the number of packets to be picked as well as manage commotion.
