Economy Kenyan Economy

Government subsidies the cost of maize floor to Shs.100

The government has subsidised the price of maize flour to Sh100 for a two-kilogramme packet in a deal with millers aimed at diffusing public outrage

outrage over the high cost of living as Kenyans go to the ballot.

According to a statement by the Agriculture Ministry on Monday, the new prices will run for four weeks.

“The recommended retail price of flour should not exceed Sh100 for a 2kg packet, Sh250 for a 5kg packet and Sh490 for a 10kg packet,” it said

Flour prices hit Sh210 for a two-kilo packet, up from Sh120 at the start of the year following crop failure due to poor weather and a shift in the movement of Uganda maize to South Sudan.

Coupled with high fuel prices, inflation hit a 58-month high of 7.9 percent last month, breaching the government’s upper limit ceiling for the first time in nearly five years and further squeezing the stagnant earnings of households. Many families have been forced to skip meals and trim their budgets on other items.

The maize subsidy announcement comes just three weeks before Kenyans head to the polls on August 9.

Kenyans on social media especially those aligned to Kenya Kwanza alliance have blasted the government over the move terming it as a campaign strategy meant to hoodwink voters to vote for the Azimio candidate in the August 9th election.