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Good news as government reduces maize flour price to Sh100

Relief for Kenyans as maize flour prices drop top Sh100.

Maize flour

The Ministry of Agriculture has today (Monday, July 18, 2022) announced a reduction of prices of maize flour from Sh230 to Sh100 for a 2Kg packet. This is after the government introduced a massive subsidy to millers.

In a statement, the Cabinet Secretary (CS) in the ministry of Agriculture Peter Munya stated that all retailers are set to sell the two-kilogram packet of flour at Ksh100, from Ksh230.

The Ministry of Agriculture also highlighted that the 1Kg packet should be sold for not more than Sh52 while the 500g packet should be sold at Sh30.

"The market price of maize (per 90kg bag) as at the date of this contract is in the range of Ksh 5,800 and Ksh 6,000. Based on this market price, MOALFC will compensate the miller for each unit sold," the statement read in part.

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The statement further highlighted that the Ministry would send representatives to the millers' premises and depots to ensure maize flour is being sold at the recommended prices.

"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 Ministry added.

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The Cabinet Secretary, however, insisted that the subsidies will only last for a month after which government hopes that prices will have fallen back to normal.

Ministry of Agriculture, National Treasury, Cereal Millers Association and Grain Mill Owners Association are set to overlook the maize subsidy.

In past months, the cost of food and the cost of other basic commodities has been on the rise, with some rising beyond expectations.

This new development comes a few days after President Uhuru Kenyatta ordered a Sh16.675 billion additional fuel subsidy in the latest review of the fuel prices.

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