President William Ruto, on Monday, April 17, revealed that his government had saved over Ksh8 billion in a span of one month while exposing flaws in his predecessor Uhuru Kenyatta's strategy on subsidising maize flour.
While addressing the Muslim faithful during Iftar at State House in Nairobi, the President stated that he decided to engage maize millers and struck a deal to lower the price of the staple food.
The deal allowed the state to import duty-free maize. Following the deal, Ruto revealed that his administration did not spend even a coin to bring down the cost of basic food prices, including maize flour.
The Head of State argued that move was a departure from a strategy employed by his predecessor who set aside Ksh8 billion to serve as a subsidy to millers.
"I want to appreciate the Kenyan traders. We gave the millers of the Republic of Kenya a chance to import food without paying taxes; they have worked with us to bring the cost of food to manageable levels.
"We have spent no money as the Government of Kenya. That is different from that subsidy in which they used Ksh8 billion in just one month, we have not spent a single coin," he insisted.
While pleading with the opposition to give his administration time to deliver on its promises, Ruto disclosed that the price of maize flour was retailing between Ksh150 and Ksh170.
He reprimanded his predecessor, arguing that when he (Ruto) assumed office, a 2kg packet of maize flour retailed at Ksh230 besides the state spending Ksh8 billion in the subsidy programme.
"I found the price of unga retailing at Ksh230, but I have tried. The other day it was Ksh170. Right now, it is Ksh150," Ruto told the Muslim faithful.
Ruto's sentiments followed a statement from State House Spokesperson Hussein Mohamed, who confirmed that the prices had gone down on select brands.
He lauded his boss reiterating the state's commitment to addressing the high cost of living.
"Unga prices have started going down just as President William Ruto had assured Kenyans over the weekend," the spokesperson announced.
To increase the country's food basket, Ruto's administration allowed traders to import various basic commodities duty-free.
In a circular notice dated Monday, February 20, 2023, the Treasury advised tax agencies to note that rice, cooking oil or fat, sugar, wheat and beans importations were exempted from duty payment.
"The Cabinet Secretary through the Executive Officer of the President approved the positioning of Kenya National Trading Corporation Limited (KNTC) as an anchor Agency of the State initiatives to create price stabilization for essential household food items, in the face of prolonged drought affecting Kenyans," the tax authority announced.
Ruto's administration approved the duty-free importation of 125,000 tonnes of cooking oil, 150,000 metric tonnes of rice, 25,000 metric tonnes of wheat, 80,000 metric tonnes of beans and 200,000 metric tonnes of sugar.
Ukraine also made several donations to support Ruto's push to lower the cost of basic commodities.
Ruto Subsidy Programme
After revoking Uhuru's subsidy programme, Ruto resolved to subsidise production, setting aside Ksh12 billion to purchase fertiliser and sell to farmers at low prices.
His directive saw farmers buy subsidised fertiliser at Ksh3,500 from Ksh6,000 per 50kg bag.
