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Government Orders Maize Flour Prices to Drop to Ksh100 Ahead of the August Elections

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The Government has introduced a massive subsidy to millers that will see Kenyans enjoy reduced maize floor prices from Monday, July 18.

According to a directive from the Ministry of Agriculture, the price of two kg flour, which currently retails at Ksh 230, will drop by Ksh 100.  

The directive further stated that the 1-Kilogramme packet should not cost more than Ksh52 and the  500-gram packet should not cost more than Ksh30.

“The market price of maize (per 90kg bag) as at the date of this contract is in the range of Ksh 5,800 and Ksh 6,000. Based on this market price, the Ministry will compensate the miller for each unit sold,” the statement read.

However, the subsidies will only be in place for one month, by which time the government anticipates that prices will have returned to regular market levels.

“The Ministry of Agriculture shall subsidize the price of maize flour being produced/sold by the miller for a period of four (4) weeks from the date of this contract,” read the agreement.

The Ministry of Agriculture, the National Treasury, the Cereal Millers Association, and the Grain Mill Owners Association will all oversee the subsidy program.

“It is agreed between the parties that the ministry shall deploy market surveillance teams to ensure that sifted maize flour is sold at the maximum recommended retail price stated.” the statement added.

As a result of the continuous drought in the Horn of Africa and other regions, the price of a packet of flour had risen to an all-time high.

An official from a local miller in June noted that they were running out of raw material due to the disruptions in the horn of Africa.

“We are extremely running low on raw materials which is maize which is being caused by disruptions in the supply chain in that local supply has dried up as well as regional supply,” the official said.

 Also read: Inside DP Ruto”s Customized 6 wheeled truck Worth Ksh 10 Million (Photos)

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