Govt Speaks On Ending Directive On Ksh100 Maize Flour

The Ministry of Agriculture, under Cabinet Secretary Peter Munya, has dismissed reports that it suspended the Ksh100 maize flour subsidy programme.

Through its official social media accounts on Saturday, August 13, the ministry flagged as fake multiple reports that revealed that it had done away with the subsidy.

CS Munya had also flagged as fake an internal memo that was circulated by media houses stating that the subsidy was ended due to inadequate funds from the National Treasury.

Agriculture CS Peter Munya speaking in a past media briefing. /PNU

"Kindly note that the Maize Flour Subsidy Program is still on," he stated.

Principal Secretary of state department for Crops Development and Agricultural Research, Francis Owino, had also assured Kenyans, according to reports, that the subsidy was still in place. However, he noted that the Ministry was still actively monitoring the situation.

If the suspension of the subsidy was proved to be true, the Ksh100 per 2kg of maize flour that Kenyans have been enjoying would have come to an end as the prices of maize flour were expected to shoot up.

"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.

"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.

President Uhuru Kenyatta on July 20 ordered for maize flour to retail at Ksh100 from Ksh205 across the country, noting that this was part of a stimulus programme aimed at protecting Kenyans from the high cost of living.

In its spot checks on maize flour prices, Viral Tea had paid a visit to four supermarkets within the Thika Road area, including two at Garden City Mall, to ascertain whether or not the directive was actually enforced.

Out of the four supermarkets sampled, only two were selling the most staple food in the whole country at the new price, with one of them setting a limit of one 2kg packet per person in a bid to avert panic buying ahead of the August 9 general elections.

However, that was merely for one brand. The rest still held on to the maximum prices, some charging Ksh193 and others Ksh230, Ksh231 and Ksh257.

The Cereal Millers Association (CMA) blamed the scarcity of Ksh100 maize flour, which became a reality after Uhuru's directive, on panic buying, with most Kenyans purchasing the maize in bulk ahead of the polls.

"This surge in demand is as a result of consumers enjoying the benefits of subsidized Ksh100 prices by buying above-average stocks. CMA stated that consumers stocking up ahead of August 9, General Election," the statement read in part.

"The government has taken the necessary interventions needed to make vulnerable households' food secure through the subsidy-backed programme that has capped the retail price of the 2-kilogramme maize flour brands at Ksh100."