Maize Prices hit a low of Sh3,100 amid falling consumer demand

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The price of maize has experienced a downturn with the value dropping from Sh3,500 to Sh3,100 a bag. These figures come amid the backdrop of aflatoxin cases which has led to production rejection amid the downturn in consumer demand.

In the follow-up to this, Agriculture Principal Secretary Hamadi Boga had this to say in an interview on the subject.

“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.”

He adds that the aflatoxin process checking should begin with the first maize suppliers other than doing the scrutiny at the end product.

Millers have argued the slump sees them lower prices to attract consumers. As of now, a 90-kilo bag fetches a low price of Sh3,100. This was a drop from the high of Sh3,500 achieved last month.

“Frankly, there is no demand for flour hence the lower maize prices,” said Capwell Industries’ CEO, Rajan Shah.

The fall in price and demand comes amid the move by the government to authorise importation of white maize worth two million bags. This was to ease a potential shortage expected within the end month.

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Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

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