Kenyans can breathe a sigh of relief after the cereals millers have confirmed that maize flour prices are not to go up any time soon.

This follows the low price of maize as farmers harvest coupled with the signing into law of the Finance Bill 2018 that saw maize zero-rated, allowing millers to claim VAT on raw materials used, instead of pushing the cost to consumers that would have driven up the retail cost of flour.

The amendments to Tax Laws Act, 2018  had changed the status of maize, cassava, wheat and maize flour from taxable status to exempt which  Finance Bill, 2018 zero rated.

Millers argue that the current status leaves room to make further cuts as well as gradually implement the government’s initiative to blend maize flour with other cereals like millet and sorghum to reduce over reliance on maize.

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The association will next month be hosting an international millers forum in Nairobi to discuss policies and strategies towards food safety and security globally.


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