Unga prices subsidy leaves rural shop owners in confusion and fix

By , K24 Digital
On Tue, 19 Jul, 2022 16:09 | 2 mins read
Gov't promises to lower unga prices from next week
Unga on shelves. PHOTO/Christine Musa

Shop and wholesale owners in rural areas of Kajiado County want the government to give proper direction on maize flour price reduction since they already have stock bought at high prices.

The sellers say the government's announcement that Unga should retail at Ksh100 from the previous Ksh 210-230 price is pitting them against customers who now demand to purchase the flour at a subsidized price.

"I have 80 bales of maize flour of different brands. How will government subsidies trickle down to me to cover the high price I bought the Unga? As a wholesale operator in the far-flung area, I am confused and in a fix. If I am to sell at that price, I will incur more than 100 per cent loss, automatically affecting my business and making it unsustainable,

"Some customers are also violent and say it is their right that I implement the government directive with immediate effect," Muthee Mulwa, Commoners Wholesale Mashuuru, says

Some shop owners in the rural villages have also been forced to close shops temporarily because customers cannot stomach that Unga is still retailing at previous prices.

"My customers here in the village are rigid and believe that as a shop owner, I want to take advantage of them against the government directive. I could not risk opening my shop today since the customers' confrontation might be chaotic. I will have to wait till the end of today to see how this new directive takes effect and how I will be considered as a shop owner in a rural village,'' Jack Lepatei, a shop owner at Kumpa, Kajiado Central, said.

The shop owners now say they risk being subjected to losses if big shops, including supermarkets, get subsidies and reduce the prices since customers will avoid buying from businesses selling at high prices.

" The price reduction trickle effect from Miller's only favors large-scale operators like supermarkets. What will happen to rural shop owners? Immediately prices come down in mega outlets. No customer will be convinced to purchase the same commodity at a high price in the name of old stock, " Julius Kishenkop, a shop operator at Kimalat village, added.

On Tuesday morning, residents thronged wholesale shops, supermarkets and shops to purchase maize flour but were frustrated to find out the price had remained constant.

"The high cost of Unga has reduced us to shopping for the product daily. It is not affordable to buy Unga in bulk, so this morning, we rushed to get several packets because we are not sure how long the subsidy will exist. We are disappointed and shocked that the prices remain the same, "Elly Maayo, a resident of Ilbisil says

In the meantime, Kenyans continue urging politicians to detest politicizing the maize flour issue and the rising cost of living, saying it is taking a toll on them.

Related Topics