Unga Prices to rise after Tanzania denies Kenyan traders permits

Unga Price to rise amid Tanzania’s denial to give Kenyan traders access to import maize into the country.

Business Daily reports that Tanzania earlier in September 2022 ceased issuing new export permits to Kenyan traders.

According to the United Grain Millers Association chairman Ken Nyaga, the move may trigger unga prices to increase much more.

“Cutting maize supply from Tanzania is expected to increase prices of maize, and millers could transfer the cost to consumers,” said Nyaga.

2kg package of unga sell for KSh 100, it now costs roughly KSh 210 to buy in stores after government withdrew the subsidy program.

A 90-kilogram bag of maize now costs between KSh 5,600 and KSh 6,000 on the open market.

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Its a double saw in both animals and people since the permits denial cutted across to all traders.

Traders dealing in animal feed import from the neighbouring country were also denied the importation permits.

In June 2022, Tanzania doubled the cost of acquiring an export permit from the previous KSh 27,000 to KSh 52,000 per truck.

Maize millers are currently going through financial constraints, as the government still owes them the subsidy money.

They want the government to pay them the production fee incurred in the production of the KSh 100 subsidised unga.

The Maize millers said they stopped the production of maize flour four weeks after the government lifted the subsidy.

The millers complained about pricing competition in the market after middlemen accessed the products they had stocked up on during the subsidy program.

They said they shall stop the production of unga until the hoarded one goes out of the market as they claim to have no intetion to compete with other brands.