NAIROBI, May 17 (Xinhua) -- Excitement has greeted the start of the sale of subsidized maize flour in Kenya, with consumers flocking retail outlets to purchase the commodity whose cost was out of reach.
The Kenyan government on Tuesday moved to cushion consumers from high prices by introducing the subsidized flour that retails 60 percent less the current market price.
The government partnered with 20 millers and announced that starting Wednesday, a 2kg packet of maize flour, East African nation's staple, would retail at 0.9 U.S. dollars, down from 1.5 dollars.
A kilo of the subsidized flour, on the other hand, the government said would go for 0.46 dollars in retail outlets.
The huge drop has come as a big relief to squeezed Kenyans, many who started swarming shops and supermarkets for the flour early morning.
A spot check on Wednesday in different retail outlets in Nairobi revealed that the government branded subsidized flour had not arrived at major retail outlets by noon.
However, the shops were selling maize from the participating millers at the recommended government price of 0.90 dollars, to the relief of Kenyans.
At a branch of Tuskys Supermarket in the city center, the outlet had lowered the price of maize flour after the government offered the subsidy, despite them having not received the branded maize from millers.
Dan Githua, the chief executive, said they had dropped the prices because the old ones were no longer tenable.
"We are taking the losses because the old stock cannot be bought right now because consumers are expecting the new prices. However, we are expecting the new stock later Wednesday or Thursday," said Githua, whose supermarket experienced an influx of customers looking for flour.
In Kawangware, however, a low income suburb on the outskirts of Nairobi, consumers were able to access the government branded subsidized flour in several retail outlets.
"I found it at a local supermarket. I am so happy that I can now eat ugali (maize meal) without any worries," said Job Wasango, a resident.
The hawker said he had bought three packets because that is what he could afford but would buy more tomorrow.
"I hope tomorrow (Thursday) when I come back I would get stock because people are buying in bulk. We have really suffered for several weeks," he said with a smile as his excitement captured that of many Kenyans.
Paul Mwangi, a Nairobi resident, said he had declined to buy maize from a shopkeeper in his estate at a higher amount, and went in search for it from two supermarkets.
"At the first supermarket I went, they were not selling the flour at the subsidized price, so I called someone who informed me where to get the commodity at the right price," he said.
However, as Kenyans celebrate the subsidized flour, shopkeepers who had the old stock are counting losses.
"I had bought four bundles of maize flour, which is about 50 2kg packets a day before the subsidy was announced but where do I sell it now. No one is willing the buy it at 1.5 dollars. This is a very big loss," said Grace Mutuku, a shopkeeper in Komarock on the east of Nairobi.
Agriculture Cabinet Secretary Willy Bett Tuesday said the government will spend 60 million dollars in the programme that would end in September, when harvesting is set to begin. The low cost maize is expected to help bring down East African nation's inflation currently standing at 11.5 percent, a 57-month high.
Some 30,000 tonnes of maize have so far been imported into Kenya from Mexico to address the shortage, with more consignment expected in two weeks.
