In Summary
  • Local millers will have access to 600,000 tonnes of maize at $225 per tonne in what will plug a deficit of more than five million bags following poor weather last year.
  • This will curb rising flour prices, which increased to Sh115 for the two-kilogramme packet compared to Sh90 in December after the government ended the Sh6 billion subsidy for maize importers

Kenya has inked a deal with Kampala to buy 6.6 million bags of maize at Sh2,050 each to plug a deficit that has triggered a rise in flour prices.

The multi-billion shilling deal that was brokered by the Trade ministry will see local millers pay Grain Council of Uganda for delivery of cargo at the National Cereals and Produce Board (NCPB) depots.

Local millers will have access to 600,000 tonnes of maize at $225 per tonne in what will plug a deficit of more than five million bags following poor weather last year.

This will curb rising flour prices, which increased to Sh115 for the two-kilogramme packet compared to Sh90 in December after the government ended the Sh6 billion subsidy for maize importers

“The deal is between Grain Council of Uganda and the Cereal Millers Association and was brokered by the Ministry of Industrialisation, our role was to bring together the two bodies by acting as the intermediary party,” said NCPB managing director Newton Terer.   

The Uganda deal look set to hurt farmers who had expected to profit from a forecast rise in maize prices from the current Sh3,200 a bag to above Sh3,400.

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