Gov’t reduces cost of milk and sugar

Gov’t reduces cost of milk and sugar

The government has reduced the price of milk and sugar. The State, on Thursday, June 8 announced a reduction in the price of these commodities in an attempt to cushion consumers from the rising cost of living, a situation that has become a campaign tool for the opposition.

This move will see the price of milk reduce from Ksh 60 to Ksh 50 and a reduction of the price of sugar from Ksh 160 to Ksh 120 going by the current market rates.

The prices are expected to be effective as from Monday, June 12, 2017.

The government spokesperson, Eric Kiraithe, explained that the reduction in the price of these two commodities has taken time because the government was trying to avoid bottlenecks that the maize flour subsidy program has faced.

“In April, the government waived duty on imported sugar and powdered milk which is coming to effect now. We have been deliberating on the logistics with the dealers and stakeholders to ensure that we do not face the same challenges we encountered with the maize,” Kiraithe said in reference to a Kenya Gazette notice dated May 11 that waived tax following the countrywide drought that saw a rise in the price of basic commodities.

The Government spokesperson told off opposition leader Raila Odinga over his claims that Jubilee had opted to ship in maize from Mexico instead of Ethiopia in order to capitalize on various costs that might accrue from the importation.

He termed Raila’s assertion that the maize from Ethiopia was cost-effective as ‘misguided’.

Kiraithe  said that the state had sent a delegation led by Agriculture Cabinet Secretary, Willy Betty, to Ethiopia to negotiate maize import costs.

“President Uhuru Kenyatta sent a delegation to Ethiopia in February this year and the government has so far allowed for the importation of 13,000 metric tonnes of maize into Kenya,” he said.

Kiraithe explained that after engaging the millers who had an interest in importing maize it was agreed by Kenyan officials that importing maize from Ethiopia would be costly.

“It became clear that a 90kg bag of maize from Ethiopia would retail at between Ksh 4,400 and Ksh 5,000 given the obtaining dependent variables. The notion that this maize will be cheap is, therefore, grossly misguided,” Kiraithe said.

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