Treasury Secretary Henry Rotich has announced that the subsidised Sh90 maize flour will be discontinued from mid-October.
While recieving the suplementary budget on Wednesday, Rotich told MPs that Treasury had allocated an additional Sh3 Billion to cover maize import costs from August.
The new allocation brings the total amount so far spent to cushion consumers from high flour prices to Sh6.7 Billion.
“We have extended subsidy programme to mid-October, therefore, requiring additional resources to continue the subsidy that was expected to have ended in August,” Rotich stated.
Elsewhere, President Uhuru Kenyatta while speaking at Nairobi International Trade Fair at the Jamhuri Park Showground announced that the government would use another Sh6 Billion to buy maize from farmers and replenish the strategic reserves.
“To boost our food security and sustain affordable price for maize flour, the Government will buy under the Strategic Food Reserve, all the maize offered for sale by our farmers during this 2017/18 season. For this purpose, we have programmed to spend Kshs 6 billion,” President Kenyatta stated.
[caption caption="President Uhuru Kenyatta during the Nairobi International Trade Fair"]
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In May, the government, through the Ministry of Agriculture, directed all millers to sell maize flour at Sh47 for a 1kg bag and Sh90 for a 2kg packet.
The new prices were announced after the government opted to import maize from Mexico to help solve the escalating prices of maize flour in the country.
The shortage of maize had raised the cost of flour to an all-time high of Sh189 per 2kg packet since limited stocks had pushed the cost of a 90kg bag to Sh4,500.
The subsidised price was backed by a Kenya Gazette notice that criminalised the sale of the product above Sh90.
Agriculture Cabinet Secretary Willy Bett announced that those found selling the two-kilo packet of subsidised maize flour above Sh90 risked a fine of Sh1 Million or a five-year jail term.
[caption caption="Agriculture Cabinet Secretary Willy Bett "]
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