On August 13, 2019, the Strategic Food Reserve Oversight Board announced a 17% increase in the price of cheap maize it sells to millers, raising the price by Sh400 per bag.
The new price of Sh2,700 for a 90-kilo bag of maize is up from Sh2,300 in July, when the board released two million bags of the commodity to millers.
According to Noah Wekesa, the SFR Oversight Board chairman, the government will release the stocks to millers at the new price, with the aim of increasing the supply of the produce in the market and stabilizing consumer prices of flour.
However, the move may have little effect in lowering flour prices, as a 90-kilo bag of maize in the market is currently going at Sh3,300.
Dr. Wekesa said the release of these stocks would increase the supply of the produce in the market, stabilising the consumer prices of flour.
He added that the harvest of maize is expected to start in some parts of the country and that the grain is expected in the market in the next two months.
