Good news for Kenyan households as Unga and bread prices set to drop

The government has introduced a duty-free importation of maize in the next four months and the removal of value-added tax on both bread and maize flour.

Ugali which is Kenya’s staple food is now expected to be cheaper following months of sky rocketing maize flour prices.

Ugali which is Kenya’s staple food is now expected to be cheaper following months of sky rocketing maize flour prices.

Rising inflation

The consumer price of flour had peaked at Sh130 for a two-kilogramme packet as food costs ballooned in the last few months as inflation in the beginning of the year shot up to nine percent.

While reading the 2017-2018 budget, CS Rotich said the two basic commodities (maize flour and bread) are expected to be cheaper after the exemptions, warning millers and bread manufacturers of a reversal should they fail to translate the benefits to the consumer.

“In order to make these commodities affordable for the common mwananchi, I propose to zero-rate bread and maize flour to remove VAT altogether.

"Manufacturers, wholesalers and retailers who sell such goods will be expected to reduce the prices of these basic commodities, failure to which, I will reverse the policy,” Mr Rotich said.

The Government expects to see a significant reduction of prices as soon as these measures start taking effect after the lawmakers sign into law the appropriation Finance Bill.

JOIN OUR PULSE COMMUNITY!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Why do guys still masturbate when they have girlfriends?

Why do guys still masturbate when they have girlfriends?

Police uniform, weapon are ID - Mutyambai addresses Boniface Mwangi's trending clips

Police uniform, weapon are ID - Mutyambai addresses Boniface Mwangi's trending clips

If I rise, let me rise with other people - Crazy Kennar scoops 3 titles at the Pulse Influencer Awards

If I rise, let me rise with other people - Crazy Kennar scoops 3 titles at the Pulse Influencer Awards

I spent Sh800K - Vera speaks on begging for money to fund lavish Baby shower

I spent Sh800K - Vera speaks on begging for money to fund lavish Baby shower

Zuckerberg loses $6 billion hours after Facebook, WhatsApp, Instagram crashed

Zuckerberg loses $6 billion hours after Facebook, WhatsApp, Instagram crashed

Cooking for Drake, collaboration with Wizkid and other things Tems revealed in a Twitter Q&A

Cooking for Drake, collaboration with Wizkid and other things Tems revealed in a Twitter Q&A

Butita recalls life-changing phone call and secrecy involved in working for Netflix

Butita recalls life-changing phone call and secrecy involved in working for Netflix

Burna Boy gives a tour guide of his palatial home in Lagos

Burna Boy gives a tour guide of his palatial home in Lagos

I need cooking classes – shouts DJ Mo after being embarrassed by daughter Ladasha

I need cooking classes – shouts DJ Mo after being embarrassed by daughter Ladasha