Kenyan Government Moves to Curb High Costs of Living
The government now says it has put in place measures to assist Kenyans to deal with the high cost of basic products such as food at affordable rates.
Col (Rtd) Cyrus Oguna, stated that the government has put in place six main mitigation measures including subsidies on some basic commodities to address the high cost of living in the country. “The situation had been caused by a variety of factors which are mainly global. We are very concerned as the government is doing everything possible to help cushion our people,” he said.
The spokesperson further noted that Kenyans will have to bear with the situation as the government works to implement the said subsidies.
high cost of living have seen the government express concerns over the shooting in prices of commodities such as maize and wheat flour, bread, cooking oils, potatoes, fuel prices, public transport fares, cooking gas and kerosene.
some of the mitigation measures put in place by the government are;
1. Removal of import duty and levies on Maize
whereby the government has suspended all import duties and levies on imported white non-GMO maize imported into the country on or before August 6, 2022, and animal feed.
Individual businessmen are free to bring in the maize to bridge the anticipated deficit of 2.2 million bags. The waiver is only for 540,000 metric tons (6 million bags) of white maize for the months of July and August before the next harvest. Millers and farmers have been urged to start sourcing the commodities immediately.
A longer solution is on the course, as the government embarks on campaigns to expand the area under maize production through the Land Commercialization Initiative to boost production for both rain-fed and irrigated crops.
2. Fertilizer and input subsidy
Additional Ksh3.5 billion has been released to the tea and sugar sectors to help boost production and to pay farmers areas. Out of this, Ksh1 billion in fertilizer subsidy to tea farmers, Ksh1.5 billion to the sugar sector (factory maintenance and payment of farmers’ areas), and Ksh1 billion to implement the interventions.
3. Cooking Oils
according to Oguna a long-term solution is being sought to embrace self sufficiency in palm oil production by increasing the number of palm tree planted in the western and coastal counties. He added that the government will promote the establishment of local oil processing plants.
The government’s spokesperson further added that there will be the promotion of local production of other oil crops such as sunflower and simsim as well as securing planting material for supply to farmers.
4. Alternative markets for wheat
The government has identified several countries as alternative sources of wheat saying no one can predict when the conflict between Ukraine and Russia will end. Millers are already importing wheat amounting to 2 million metric tons per month to meet local demand.
5. Subsidy to stabilize the prices of fish
To encourage fish farming and raise production, the government has provided Ksh3.2 billion for feeds, dam liners and predator kits, upgrading of fish landing facilities in different counties and training.
6. Subsidy on fuel
Prices of crude oil prices having risen steadily has been a factor that has affected pump prices locally.
The government says it has deployed a stabilization program to cushion Kenyans against the volatility in fuel prices by paying Ksh45.93 billion under the fuel subsidy program. A further Ksh20.85 billion was paid mid last month to help lower the prices.
Speaking on why the cost of living has been on an upward trajectory, Oguna stated that the effects of the Covid-19 pandemic are still felt, the prolonged drought and desert locust also affected the agriculture sector, the Ukraine – Russia conflict and the value of the shilling against the dollar.