Kenya Gov’t Suspends Sh100 Maize Flour Subsidy Program

The government has suspended the National Maize Flour Subsidy program that was aimed at cushioning Kenyans against the high cost of living.

In what will see Kenyans dig deeper into their pockets to buy maize flour, Agriculture Cabinet Secretary Peter Munya said the suspension of the subsidy program is due to inadequate funds from the National Treasury.

“As you are aware, the government through this Ministry and other key stakeholders has been Implementing the ongoing Maize Flour Subsidy Program in partnership with contracted millers under a Presidential Executive Order,” CS Munya said in a memo on Saturday.

“However, due to Inadequate exchequer releases from the National Treasury, it has been decided that the Maize Flour Subsidy program be suspended with immediate effect. The purpose of this memo, therefore, is to direct that you suspend the above program immediately and prepare a comprehensive closure report for my review as soon as practical.”

The subsidy announced by President Kenyatta last month saw the price of a two-kilogram packet of maize flour reduce to Sh100 from an average of Sh205. The president said the subsidy was part of the government's stimulus program aimed at cushioning Kenyans against the current high cost of living

Kenyatta further announced the suspension of the Railway Development Levy (RDL) and the Importation Declaration Fee (IDF) on all imported maize into the country.

"This program of a subsidy of Sh105 per 2kg pack of maize-meal is meant to lower the cost of living for the vulnerable households as we look for a sustainable solution to the recurrent rising price of unga every election," he added.