Kenya subsidises maize imports


The Government announced to grant temporary subsidies to maize imports and to sell imported maize to millers at an average price of KES 2 300 (USD 21.87) for a 90 kg bag of maize flour, compared to the average cost of more than KES 4 000 (USD 38) in the local market. Millers will then brand the flour with the Government of Kenya (GOK) label and sell the 2 kg packs of maize flour at a price not higher than KES 90 (USD 0.86), down from about KES 140 (USD 1.33) reported in April. The Government had already allowed millers to import maize from any country and exempted maize flour from value added tax (FPMA Food Policies).These measures aim to reduce retail prices of maize, which have been on an increasing trend since early 2017. Prices were at record or near-record highs in April, underpinned by reduced supplies from the 2016 short-rains second season harvest and concerns over the upcoming 2017 long-rains harvest due to early season dryness and armyworm infestations. In order to mitigate reduced availabilities and high prices of other essential food items, the Government has also waived duty on imported sugar and milk powder. The general increase in food prices pushed consumer price inflation to 11.5 percent year-on-year in April, a near five-year high.

Country: Kenya