Government Moves to Stabilize Unga Prices as Strategic Grain Reserves Activated
The Kenyan government has reassured citizens that maize flour prices will remain stable, even as local stocks dwindle and market pressures intensify.
Speaking during a press briefing on Monday, Agriculture Cabinet Secretary Mutahi Kagwe emphasized that the country’s strategic grain reserves are adequate to cushion the market, calming fears of a possible surge in Unga prices.
“There should be no panic about the price of Unga going up, it is not going to go up,” Kagwe said. “We are going to ensure it doesn’t go up by releasing the strategic grain reserves that we have.”
5.5 Million Bags of Yellow Maize to Be Imported
To supplement the current supply and ease the burden on white maize — which has surged in price by 26.47% since December 2024 — the government has authorized the importation of 5.5 million bags of yellow maize.
A key part of the plan includes a 50% import duty waiver for at least one year, aimed at reducing costs for millers and ultimately shielding consumers from rising food prices.
“The government has authorised the importation of 5.5 million bags of yellow maize to help stabilise the price of Unga and cushion consumers from rising food costs,” said a government spokesperson.
Millers Blame High Prices on Tight Supply, Feed Industry Demand
Despite these measures, millers are sounding the alarm, citing low domestic maize stocks and fierce competition from animal feed manufacturers as major stressors on supply chains. Many millers are reportedly operating at reduced capacity due to limited access to affordable grain.
To meet demand, some have turned to imports from neighbouring countries such as Tanzania, but cross-border grain flows remain inconsistent and costly.
Retail Unga Prices Climb to 14-Month High
According to the Kenya National Bureau of Statistics (KNBS), the average retail price of a 2kg packet of fortified maize flour rose to Sh169.41 in April 2025, up from Sh165.05 in March — a 2.64% increase in just one month.
This represents the highest price point since February 2024, when a similar packet went for Sh172.75. On a broader scale, households are now paying Sh24.77 more per packet compared to October 2024, reflecting a 17.13% year-on-year rise.
Industry Struggles Persist
With input costs rising and margins shrinking, industry stakeholders say cash flow is tight, and warn of potential disruptions if grain availability does not improve. Some mills have already scaled down production, awaiting further government intervention or improved domestic harvests.
Bottom Line:
While the government’s release of strategic reserves and import incentives aim to stabilize the maize flour market, experts warn that supply bottlenecks and external pressures could continue to challenge price stability in the coming months.
