The Kenya Kwanza Gov’t has been promising that the cost of maize flour will be reducing as from next week.
According to top Kenya Kwanza officials, the cost of flour will reduce due to Gov’t subsidiaries on fertilizer.
The Gov’t, led by President William Samoe Ruto, has failed to realise that production of food doesn’t end in the farm. Note that flour production relies heavily on:
Firstly, the raw materials needed, this includes Maize itself which the Gov’t has subsidised. However, the raw materials need to be transported and this is where fuel comes in.
The cost of fuel will definitely increase the final pricing of the same flour unless we are planning to transport the farm produce by wheelbarrow. I haven’t mentioned storage cost.
Secondly, supply and demand; the higher the demand the higher the price of flour.
Thirdly, Government policies and subsidies will directly affect currency exchange rates.
Lastly, competition and branding and the country’s economic conditions will take a toll on pricing.
