The subsidy of approximately Ksh.105 for a 2kg pack of maize meal is meant to lower the cost of living for vulnerable households as we look for a sustainable solution to the recurring prices of unga every election year- President Uhuru Kenyatta
The sky-rocketing prices of maize flour forced President Uhuru Kenyatta to intervene in a deal brokered between the government and Kenya’s major millers. Through a televised live address to the nation while accompanied by some of the millers at State House the president announced the reduction of maize flour prices from Ksh. 205 to 100 for a 2 kg packet.
President Kenyatta’s administration had earlier signed a deal with the millers for a subsidized price on maize flour that was to take effect immediately at all the retail outlets across the country.
Most Kenyans are dependent on maize flour, it is the national staple food that sustains many lives daily. The President declared: “The government subsidy will remain in force until when revised and officially declared otherwise by my government.”
In a televised address to the country from State House Nairobi on Wednesday before representatives of the millers, President Kenyatta ordered that a 2kg packet of maize flour will now retail at Khs. 100 countrywide irrespective of the brand. Before the government announced the new prices, retailers were selling the products like Soko, Hodari, Jogoo, Amaize, EXE, and Pembe maize brands at Ksh. 220 for a single 2kg packet.
There are other interventions that were taken to lower the cost of living which include the suspension of the Railway Development Levy on all imported maize, the Import Declaration Fee (IDF) on all imported maize was also suspended with immediate effect
The President declared: “The subsidy of approximately Ksh.105 for a 2kg pack of maize meal is meant to lower the cost of living for vulnerable households as we look for a sustainable solution to the recurring prices of unga every election year.” The head of state pointed out that the government subsidy followed a deal brokered between the government and maize millers registered with the Agricultural Food Authority after many days of consultations.
“There are other interventions that were taken to lower the cost of living which include the suspension of the Railway Development Levy on all imported maize,” he said. President Kenyatta said the Import Declaration Fee (IDF) on all imported maize has also been suspended with immediate effect, the move by the government is expected to lead to the lowering of the 2kg packet of maize flour from the current more than Khs. 205 to Khs. 100.
The President thanked the millers for their understanding and seeing the need to accept the deal and ensure Kenyans live with dignity. He said the government was also immediately going to form a task force to find out why retail prices of most essential consumer commodities go up during every election year.
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