[Photo: Supreme Supermarket]
Unga Limited Chief Executive Officer Joseph Choge says, the price of maize flour could go up by 2 shillings for a two KG packet in the coming days.
This is on the back of a shortage and costly maize in the market, and also a recently introduced tax on grains delivered to Nairobi.
This is after the Kenya Revenue Authority (KRA) started charging the levy effective 1st of March.
“Please take note that KRA and the Nairobi County government shall with effect from Wednesday, March 1, 2022, at 7 am in the morning, commence collection of cess on cereals from produce being brought into your members premises,” noted a letter dated February 25, 2022.
“For clarity purposes, the responsibility for paying for the cess shall be on the owner of the products and not the miller, unless the miller is the owner,” stated a section of the letter.
Choge says the tax alone could see the cost of flour go up, once the cost is factored in the pricing.
“Tax will definitely affect new stocks that we are buying and prices will increase,” said Mr Choge.
He however noted that Unga Limited is yet to increase its prices, noting that this will be done for new supplies coming to Nairobi.
This is as a market report shows that a two-kilo packet of Dola, Pembe, Ajab, Jogoo and Soko are now trading at Sh133, Sh124, Sh127, Sh122 and Sh123 respectively, from an average of Sh108 in December.