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HomeKenya NewsSubsidizing maize was a bad economic practice, Mp Says

Subsidizing maize was a bad economic practice, Mp Says

By Iptisam Abdalla, Nairobi

Kenyans are expected to suffer as the Kenya Kwanza government has dismissed the payment of ksh 4 billion unga subsidy to maize millers predicting a rise in maize flour prices.

The unga subsidy  amounting to ksh 8 billion  introduced in August  2022 by Uhuru Kenyatta’s administration with an  aim of reducing unga prices from ksh 200 to ksh 100 was cut short by the government on grounds that it is a burden to the National Treasury.

The National Assembly Budget and Appropriation Committee has on February 28, adopted the supplementary budget released by the Treasury in January 2023.

Addressing the unga subsidy’s pinch on the National Treasury, committee member Ndindi Nyoro said that the supplementary budget estimates have reduced the country’s physical deficit to 5.7 percent of the Gross Domestic Product.

‘’ Through these supplementary estimates, we have condensed our appetite and physical deficit, which is 5.7 percent of our GDP” said  Nyoro.

The chair  of the finance committee, MP Kimani Kuria, said that subsidizing maize was a bad economic practice.

‘’ The whole model of thinking that to bring down the cost of maize flour is to subsidize miller’s production is ill-informed’’ he added.

The governments move on withdrawal of subsidies on maize flour is an increased punishment to Kenyans who are already struggling to put food on the table .


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