Traders affiliated to the Retail Trade Association of Kenya (RETRAK) are seeking in excess of Ksh.175 million from millers to cover losses from selling a two-kilogram packet of maize flour at Ksh.100.
In a statement, the retailers through RETRAK stated they were holding unsold stocks estimated at 750 tonnes acquired before the Presidential orders to lower the cost of unga on Wednesday.
“Consequently, we have commenced engagements with the respective maize mill suppliers to recover more than Ksh.175 million, which is a cumulative estimate of the higher price paid earlier to them to facilitate deliveries,” the traders said in a statement undersigned by RETRAK CEO Wambui Mbarire.
“It is instructive to note that fast-moving commodities such as unga are paid for in advance by retailers or in very thin credit terms which do not exceed 14 days.”
Many traders including major retailers to shopkeepers were caught unawares by Wednesday’s directive to lower the price of unga by more than half exposing them to losses in the millions of shillings from holding old stocks.
