NAIROBI, July 24 (NNN-KBC) — Agriculture CS Peter Munya says the Kenyan government has released Ksh 8 billion in order to finance the 4-week National Maize Flour Subsidy Programme announced Wednesday.
The funds will allow millers to implement the subsidy programme announced by President Uhuru Kenyatta which has seen the price of a 2kg maize meal packet retail at Ksh. 100 from the previous Ksh 205.
Munya said the government has also cleared the pending arrears amounting to Ksh 500 million from the subsidy programme announced in 2017 when prices surged to Ksh 189 from Ksh. 70.
During a briefing, Munya cautioned traders seeking to take advantage of the situation to buy excess maize flour for resale purposes despite the government assurance that consumers will not be restricted to the number of packets they should buy.
“There will be no restriction. However, re-sale is prohibited and the government shall use relevant authorities to bring those engaging in this form of malpractice to account,” said Munya.
Given the subsidy programme is scheduled to end in August 20 bringing uncertainty to the direction prices will take after, Munya said expected long rain should help ease prices.
“It is anticipated that the situation should stabilize after the early harvest of the long rains season hits the market. We are monitoring production, and we expect that the maize deficit will ease after the end of August 2022, and the maize flour prices will begin to come down,” he said.
He said an oversight committee has been constituted to oversee the subsidy programme and already 70 millers have inked a deal with the government that will see the subsidized maize flour retail at Ksh 100 for 2kg packet and Ksh 52 for 1kg packet.
Munya blames the scarcity of maize flour in some retail outlets on panic buying by shoppers, saying the government has finalized the process of importing 30,000 tonnes of maize from Zambia.
Kenya has a 6 million maize bags deficit until the harvest season.
However, posho mills and cereal shops will not be considered for the subsidy programme as the government says there are no modalities to compensate them. — NNN-KBC