Sources indicate that middlemen in Uganda purchase 90 kg of maize for prices ranging between 1,500 and 1,800 Ugandan shillings.
They then resell the maize locally in Kenya for prices ranging from 3,400 to 3,800 Kenyan Shillings. The maize originates from Bukwo District in Eastern Uganda, where harvesting began last December.
Kenyan middlemen have accumulated significant quantities of maize imported from neighboring regions, which they subsequently dry and sell to local millers.
The arrival of inexpensive imports has led to a decline in prices, posing a disadvantage to Kenyan farmers.
Tom Nyagechega, the commodity representative of the Kenya National Federation of Farmers (KENFF), acknowledged that the arrival of cheap imports has had an impact on local prices.
“The cheap imports have destabilised producer prices and disadvantaged local farmers,” lamented Nyagechaga.
He criticized middlemen for exploiting the free market by importing large quantities of maize, which has impacted local prices.
Nyagechaga mentioned that some farmers who hadn’t sold last season’s harvest have been significantly affected by the imports.
“Some farmers who had stored stocks hoping for a price rise have been frustrated by the imports,” said the official.
A spot-check revealed that cereal traders in Kitale have stocked imported maize.
Some farmers who had hoarded their maize, expecting better prices, are now feeling frustrated. Most producers in the region had also avoided selling to the National Cereals and Produce Board (NCPB), which purchases the produce at Sh4,000 per 90 kg bag, citing stringent conditions.
Those interviewed said they had anticipated prices of last season’s stocks to appreciate, but the influx of cheap imports has flooded the market.
“I have a stock of 1,000 bags, and I expected the price to go up, but this has not happened due to the arrival of cheap maize from Uganda,” lamented John Sigei.
The farmer had hoped to use the proceeds from maize sales to buy fertilizer.
“The DAP fertilizer is expensive, and I had hoped to sell my maize when the price reached at least Sh5,000 per bag. It’s disappointing that middlemen have brought cheap imports from Uganda,” lamented the farmers.
Kitale Industries, a prominent private maize milling company in the region, is acquiring maize at a rate of Sh3,800 per 90kg bag. Many large-scale farmers are choosing to store their maize, anticipating higher prices before selling.