Government Suspends The Ksh.100 Maize Flour Subsidy

After the government discontinued the subsidy program, which saw a 2kg packet of maize flour sell for Ksh. 100, Kenyans would now have to pay more.

Peter Munya, the secretary of the Agriculture Cabinet, made the announcement of the suspension via internal memo on Saturday, citing a lack of funding from the Treasury to carry out the program.

“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,” said CS Munya.

“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,” he stated.
The taxpayers were expected to spend at least Ksh. 8 billion for the Unga subsidy scheme, which was just inaugurated last month.

The budgeted amount was used to pay millers the difference between the discounted selling prices and the previous going rate on the market.