This archive report was first published on 19 June 2020.
On June 19, 2020, the price of maize in Kenya dropped to Sh3,100 per bag, a decrease from the previous price of Sh3,500.
The decline in price is attributed to high levels of aflatoxin in the maize, which has led millers to reject most of the produce. Additionally, consumer demand for maize has slumped, with Kenyans eating less ugali, leaving millers with dead stock.
Agriculture Principal Secretary Hamadi Boga explained that the market is driven by supply and demand, and that most of the good maize has already been sold. He also noted that cheap maize may contain high levels of aflatoxin, making it difficult for millers to sieve through the good and bad maize.
"Supply and demand is what rules the market. Most of the good maize is also gone, cheap maize may have high aflatoxin levels. So millers have to be more careful," said Prof Boga in an interview.
Capwell Industries CEO Rajan Shah also attributed the lower maize prices to the lack of demand for flour. He stated that the processors have argued that stocks are not moving even after lowering the price to attract consumers.
"Frankly, there is no demand for flour hence the lower maize prices," said Rajan Shah.
The government has authorized the importation of two million bags of white maize to ease the anticipated shortage at the end of the month.
