Maize subsidy program extended to December due delayed harvest
David Indeje
The Ministry of Agriculture has extended the maize subsidy program citing delay in harvesting in most parts of the country. Treasury has confirmed a request from the Ministry for an additional KES 3 Billion (0.04 percent of estimated FY17/18 GDP) for the subsidy extension. According to the ministry, new maize stocks from North Rift region is slated to come to the market end of next month. The subsidy program has helped address the supply of the staple which had propelled maize flour (2kg) to KES 150 level in April.
The program was intended to end this month after it commenced in May to reduce the price of a 2kg packet of maize flour to Sh90 from Sh140-150. Early in the week, Cereal Growers Association had written to the ministry to address the problem of low prices in the market ahead of harvests. According to the growers, an extension of the maize subsidy would force them to sell at a lower cost than in other harvest seasons.
