Maize is one of the commodities that is used by almost every family in Kenya. According to majority of precious statistcs, maize flour is the most used it.for domestic and commercial consumption. However, a big blow may hit Kenya as prices may increase due to this move by the government.
According to a report by Nation Media senior journalist, Agriculture and Food Authority bans importation of maize with immediate effect after high levels of aflatoxin were detected in maize from Tanzania and Uganda.
Although the above move seeks to protect the members of public from consumption of poisonous food, it may in turn lead to a massive Increase in prices of these commodities.
In business, the availability of raw materials plays a vital role in the determination of the the end product cost. This is a factor that may be greatly affected by the above move by the government.
Kenya has been an importer of maize products from the two countries. Immediate stopping of this business would probably mean that companies will now compete with the locally available maize which will.therefore be limited.
While there would be few suppliers of the important product in the country, it would mean that suppliers will consider selling at a higher price. This would then lead to an increase in prices of maize products countrywide.
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