Kenya faces maize shortage

Nairobi – Maize prices in Kenya are on steady rise following revelations that production of the staple in the East African nation dropped.

Friday, November 08, 2013
Poor weather has hurt maize production in Kenya. Net photo

Nairobi – Maize prices in Kenya are on steady rise following revelations that production of the staple in the East African nation dropped.The cost of the commodity has increased in the last two weeks by at least $1.5 across Kenya, with Nairobi leading among regions with steep rises.

A 90kg bag of maize in the capital is going for $38 in wholesale markets, up from an average of $36 a fortnight ago. Price of the commodity is highest in Kisumu, Kenya’s third largest city. A 90kg bag of the staple is being sold at $42, up from about $40 the previous weeks. In Mombasa, the cereal is going for $35 per 90kg bag. There have been little price changes in the coastal town in the past weeks, with the cost of the commodity stabilising at $35.The government in a food security report released last week showed that the country had not achieved its maize production target. Out of the targeted 1.8 million hectares of production, the country achieved only 89 per cent. The State Department of Agriculture (SDA) attributed the shortfall to diseases and weather conditions. "The reduction in yields and production are attributed to delayed and reduced land preparation due to political campaign interference, very high rainfall and flash floods that affected some farmers in the major grain production areas, early cessation of long rains before crop maturity and delayed supply of subsidised fertiliser,” said the report.On the other hand, researchers from Egerton University’s Tegemeo Institute noted in a report that Kenya’s maize production this year fell by 33.4 per cent. The institute said farmers harvested 29 million 90kg bags of maize during the long rains season, against a target of 43.4 million bags.

This means Kenya, which consumes 3.72 million 90kg bags of the staple each month, has a shortfall of about 14 million bags. Traders blame the steady rise in maize prices to unscrupulous people, who have started to hoard the commodity in anticipation that the price will double. "Middlemen are buying the commodity from farmers to hoard so that they can reap when the shortfall begins to bite,” George Kipkoech, who runs a posho mill in Kayole, east of Nairobi, said. Kipkoech said maize prices in breadbasket areas are a three-year high. "The last time I bought a bag of maize at $31 soon after harvesting was in 2010, when the country later faced a food crisis. It is happening again this time. A 90kg bag of maize usually goes about $25 immediately after the harvest season,” he said. "This means maize prices will not go down in the coming months. Consumers should be prepared to dig deeper in their pockets to access the commodity,” he added. Western Kenya-based agriculture extension officer Bernard Moina acknowledged that farmers and traders have started to keep their maize in anticipation of higher prices. "In the past weeks we have witnessed massive selling and buying of maize by middlemen in Kitale. They are expecting to keep the commodity and sell at the opportune time,” he said. He noted that the situation has been exacerbated by last week’s government’s announcement that maize production dropped. "This has caused anxiety among many farmers. Some of them were readying to sell maize to the cereals board but they will not do it. They will keep their harvest and hope to sell when prices go up,” he said. The hoarding, according to Moina, is expected to push up maize prices across the country.Kenya, according to Agriculture Cabinet Minister Felix Koskei, will up its maize imports from its neighbours Tanzania and Uganda to boost its stocks and thus stabilise prices. "We will engage with other East African Community partner states that have surplus maize to bridge the shortfall in maize production,” Koskei said recently. SDA’s report showed that boosted by imports, Kenya’s food security will remain stable until March 2014, when the planting season begins.