what next for retailers with expensive unga stock?
Written by munika remjuice on July 21, 2022
Retailers with a large stock of UNGA that was going at 230 are now desperate wondering where to place the stock after Uhuru lowered the price ON 20th July in Nairobi statehouse.
Uhuru the president announced that the maize flour would retail at 100 shillings with immediate effect which was a blow to such retailers who had retained their stock up to the 20th of July. The retailers were not given enough time to sell the expensive stock.
Most of the supermarkets are experiencing such a problem .conviencing a client has been hard following the big question of maize flour that was answered by the president on Wednesday of 20th July. The millers too have the same burden to carry for their suppliers won’t accept another stock before exhausting the current one .but the beg dilemma is, did the state consider the retailers before lowering the price immediately .?The common Kenyan will not mind on their business w2elfare for they only focus on the statement issued by the countries top leader.”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.
“We are now waiting for a directive from our suppliers and millers on how we shall handle the existing stocks in the coming days. We are holding a lot of stocks that we had bought earlier,” said Willy Kimani, Chief Commercial Officer of Naivas Supermarket.
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. The president opened up by saying that during every election the UNGA price has been hiking and he does not expect blame for his government. However, he asked politicians to stop politicizing the whole thing.
“Before the general election in 2012, the price of UNGA shot from Sh70 to Sh130. In three months to the August 2017 election, the price of UNGA shot up to Sh189. Months to the August 2022 election, the price of UNGA has shot up to Sh205. Is it a market dynamic or a deliberate outcome? Mr. Kenyatta posed.