Agriculture Cabinet secretary Peter Munya announced the suspension through an internal memo on Saturday, citing inadequate funds from the Treasury to see the program through.
“As you are aware, the government through this Ministry and other key stakeholders has been Implementing the ongoing “Maize Flour Subsidy Program in partnership with contracted millers under a Presidential Executive Order,” said CS Munya.
“However, due to Inadequate exchequer releases from the National Treasury, it has been decided that the Maize Flour Subsidy program be suspended with immediate effect. The purpose of this memo therefore, is to direct that you suspend the above program immediately and prepare a comprehensive closure report for my review as soon as practical,” he stated.
The Unga subsidy program was launched last month and was projected to cost taxpayers at least Ksh.8 billion.
The allocation covered payments to millers for the difference between the subsidised selling prices and the previously prevailing market rate.