NAIROBI, Kenya May 17 – Kenya is set to spend Sh6 billion in a new subsidy program that will see maize flour prices reduce to Sh90 from the current Sh160.
The country’s Agriculture Cabinet Secretary Willy Bett says they are expecting to buy five million bags of maize in the in the next four months buying a 90Kg bag of maize from importers at Sh3600.
The subsidy program will see millers buy a 90Kg bag of maize at Sh2600 with the government topping up the rest for the millers.
Bett hopes the temporarily measure will be sustainable until the harvest of the long rains.
The country is also seeking more maize in Zambia and Ethiopia as the government tries mopping out any maize through negotiated prices.
Currently, the cost of 90Kg bag is at Sh4,600 in the country and Sh4,300 in the region.
The government has also waived duty on the importation of sugar and milk products In a bid to reduce the price of the commodities.