Relief for Kenyans as maize flour prices drop to KSh100

By , K24 Digital
On Mon, 18 Jul, 2022 16:04 | < 1 min read
Traders decry losses from selling Unga at Ksh100, seek Ksh175million compensation
Traders decry losses from selling Unga at Ksh100, seek Ksh175million compensation. PHOTO/Courtesy

The government has introduced a massive subsidy to millers that will see maize flour prices for a 2kg packet reduced to Ksh100 effective Monday, July 18. 

In a statement on Monday, the Ministry of Agriculture directed that all retailers should sell the two-kilogramme packet of flour at Ksh100, down from Ksh230.

"It is agreed between the parties that the ministry shall deploy market surveillance teams to ensure that sifted maize flour is sold at the maximum recommended retail price stated. The market price of maize (per 90kg bag) as at the date of this contract is in the range of Ksh5,800 and Ksh6,000. Based on this market price, MOALFC will compensate the miller for each unit sold," the statement read in part.

Subsidy on maize flour prices

The subsidy will be on for a period of four weeks and overseen by the Ministry of Agriculture as well as the National Treasury, Cereal Millers Association and Grain Mill Owners Association.

An escrow account at the Central Bank of Kenya (CBK) shall be opened and operated by the Agriculture Ministry to ensure payments are made as stipulated in the contract to facilitate the subsidy.

The Agriculture Ministry shall station their representatives at the premises and depots of millers to verify proof of sale of maize flour into the market. They will rely on invoices to the millers’ customers for the flour being sold and delivery/dispatch documents.

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