President Uhuru Kenyatta has unveiled fresh stimulus measures to safeguard Kenyans from the high cost of living, thereby decreasing the price of maize flour.
Following negotiations with millers at State House in Nairobi today, the Head of State noted that a 2-kilogram packet of Unga will sell for Sh100, down from an average of Sh205.
“This program of a subsidy of approximately Sh105 per 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 recurrent rising prices of maize flour every election,” Kenyatta said.
He stated that the subsidy was the result of a contract struck between the government and maize millers registered with the Agricultural Food Authority after days of negotiations further recommending the suspension of the Railway Development Levy and the Importation Declaration fee, bringing the price of a 2-kilogram maize flour down to Sh100.
“As a consequence of this continued escalation in food prices, I today announce Fiscal Measures focused on food Subsidy, as our Fifth Stimulus Programme covering the supply and distribution of our nation’s staple food – maize meal, across the entire country,” he said.
Uhuru urged the business community, parliamentarians, and State actors to join efforts to alleviate the situation.
“I invite all of them to join the community not of mourners or grumblers even when you serve in government but I ask you all to join the community of solution givers for this is where the future of our country lies. The partnership between the corporate citizen and the political class has to be to the ultimate benefit of the people in all of our republic. And if it breads misery like the high price of maize every election, then it’s the voter to put an end to it,” Uhuru added
The Ministry had earlier stated that they will send personnel to miller’s facilities and depots to verify confirmation of maize flour sales in the market.
Food and basic consumer goods costs have risen in recent months, with some basic commodities reaching previously unheard-of highs.
The most affected products include maize and wheat flour, sugar, cooking oil, tissue paper, milk, groceries, and bread.
The sharp increase in fuel prices in the country has had a ripple adverse effect on the economy leading to a rise in the cost of living and the cost of doing business on an already overburdened citizenry grappling with the effects of the pandemic.
Food inflation rose 8.89 per cent in January 2022 despite the decline in the overall rate of inflation, according to the Kenya National Bureau of Statistics (KNBS) monthly Consumer Price Index.
A review at retail prices for essential household food items reveals that high costs have impacted Kenyans, the majority of whom are poor, and that more Kenyans are at risk of falling further into poverty.