Kenyans will now have to pay extra for maize flour after the government stopped a subsidy program that saw a 2kg package cost Ksh.100.
Agriculture Cabinet Secretary Peter Munya announced the suspension in an internal memo on Saturday, citing insufficient Treasury money to complete the initiative.
“As you are aware, the government through this Ministry and other key stakeholders has been Implementing the ongoing “Maize Flour Subsidy Program in partnership with contracted millers under a Presidential Executive Order,” said CS Munya.
“However, due to Inadequate exchequer releases from the National Treasury, it has been decided that the Maize Flour Subsidy program be suspended with immediate effect. The purpose of this memo therefore, is to direct that you suspend the above program immediately and prepare a comprehensive closure report for my review as soon as practical,” he stated.
The Unga subsidy program was begun last month, with taxpayers expected to pay at least Ksh.8 billion.
The allocation included compensation to millers for the difference between subsidized selling prices and the preceding market pricing.
SOURCE : NEWS AGENCIES