30 March 2017•Update: 30 March 2017
By Magdalene Mukami
NAIROBI, Kenya
Kenya on Thursday cut prices on staple foods as the nation grapples with a drought which has left millions of people at risk of starvation.
In a budget announcement, Treasury Minister Henry Rotich said: “In order to make these commodities affordable for the common mwananchi [Swahili for citizen], I propose to zero-rate bread and maize flour and its products …to remove value-added tax altogether.”
Rotich added that manufacturers, wholesalers and retailers who sell maize and maize products would be expected to reduce prices on these basic items.
In response to the drought, maize during the next four months will be sold duty-free.
“I expect, therefore to see a reduction of prices for these basic commodities which are enjoyed by the majority of our people,” Rotich said.
Ugali is Kenya’s staple food -- a mixture of maize flour and water which is mostly eaten with vegetables.
The biggest winners in the 2017-2018 Kenyan budget are the energy sector, infrastructure, agriculture, health, security and education but lottery and gambling companies saw taxes raised to 50 percent.
Kenya’s security sector got a boost after being allocated 54.6 billion shillings ($53 million) to aid in fighting al-Shabaab militants from Somalia.
The money will go on the purchase and leasing of vehicles, the modernization of the Kenyan military and other security operations.
