Editor's Review

The government has ordered a significant reduction in the price of maize flour.

Kenyans can now breathe a sigh of relief after the government ordered a significant reduction in the price of maize flour.

In a directive by the Ministry of Agriculture on Monday, retailers were directed to sell a 2kg packet of maize flour at Sh100.

This comes after the Ministry signed an agreement with maize millers to subsidize the price of the commodity.

"It is agreed between the parties that the Ministry of Agriculture shall deploy market surveillance teams to ensure that sifted maize flour is sold at the maximum retail price stated," read part of the statement.

The price of a 2kg packet of maize flour has been retailing at as high as Sh230.

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{File image of Maize flour brands on a retailer shelf. Photo: Courtesy}

In the new directive, a 1kg packet of maize flour will retail at Sh52 while a 50kg packet of the same commodity will retail at Sh2,150.

The Ministry of Agriculture said that it will compensate the millers for each unit sold based on the market price.

"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, the Ministry will compensate the miller for each unit sold," the statement read.

However, the maize flour subsidy will only run for the next one month.

“The Ministry of Agriculture shall subsidize the price of maize flour being produced/sold by the miller for a period of four (4) weeks from the date of this contract,” read the agreement.

The Agriculture Ministry stated that an oversight committee will be formed to oversee the effective working and success of the subsidy programme.