Millers have said that they will be milling their last batch of maize flour under the subsidy program this week as the program comes to an end. This will occur on varying dates depending on the dates of the agreement.
This will see consumers purchase the ever-scarce commodity at the original price of 210 shillings before the introduction of the subsidy program. Last month president Uhuru Kenyatta directed that all retailers should sell the two-kilogram packet of flour at 100 shillings, a drop from the high 230 shillings in a government’s move to enhance access to the commodity.
However, since the introduction of the subsidy program, Kenyans have been finding it difficult in accessing the commodity despite the government’s assurance that the commodity will be available in large amounts in outlets across the country. The delays were attributed to late payments by supermarkets.
Although the government had earlier said that it will continue with the subsidy program even after the elections, it has already informed millers that it will not be processing more payments under the subsidy program. According to the ministry of agriculture, 160 million shillings have already been released to the millers for the program.
The ministry of agriculture has said that it is expecting a drop in the prices of maize flour without the subsidy, following the reduced prices of maize.
The price of maize has dropped to 5,600 shillings from an average of 6,000 shillings for a 90 kg bag. In Eldoret, Kisumu, and Nakuru, a 90 kg bag of maize is now selling at 5,600, 5,400, and 5,600 shillings respectively, from a high of 6,000, and 5,900 shillings.
The drop has been attributed to the increased supply from farmers in Narok, Bomet, and other parts of South Rift who have concluded harvesting. The country has also received consignments from Zambia and Tanzania after the countries experience a bumper harvest. With the price fall, it means that the prices of maize flour are also likely to contract.
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