Kenya is facing fresh questions over how public money was spent after it emerged that the government used Ksh4 billion on the maize flour subsidy programme without the approval of Parliament. This issue has drawn strong attention because it suggests that funds meant for other needs were redirected and spent in a way that goes against normal financial procedures. The discovery was made through a report on the Agriculture, Rural and Urban Development sector, which examined how money was used in the 2022/23 financial year.
The report shows that the Ksh4 billion was part of the recurrent budget under the State Department for Crops Development. It was used to pay maize flour millers, even though the money had not been approved when Supplementary Estimates 1 and 2 were finalised.
This created a budget overshoot and raised concerns about the lack of proper accountability. According to the report, the maize flour subsidy was never included in the approved budget, yet payments to millers went ahead. This raises fears that the use of the money may not have been closely monitored, leading to possible misuse.
The Medium-Term Expenditure Framework for financial years 2026/27 to 2028/29 also highlights how this over-expenditure affected other government plans. It shows that the recurrent budget absorption for 2022/23 reached 104.4 per cent, meaning the government spent more than what had been allocated. In the following years, development projects were affected because of reduced budgets and delayed approval of funds. The report also noted that in the 2024/25 financial year, there was over-expenditure under employee compensation since budget cuts were introduced after costs had already been incurred. This points to a pattern of poor planning and weak financial controls.
The maize flour subsidy has long been a sensitive political topic in Kenya. During the 2022 General Election campaigns, it was one of the key issues raised by candidates. When President William Ruto took office, he quickly ended the subsidy programme that had been started by former President Uhuru Kenyatta. The earlier subsidy launched in May 2017 was worth Ksh6.5 billion and was meant to reduce the price of maize flour, which at the time was retailing at Ksh180 per 2kg packet. The debate around subsidies has continued as leaders argue over their effectiveness and transparency.
In the middle of these concerns, the Agriculture Cabinet Secretary Mutahi Kagwe recently announced hopeful news about food production. He said Kenya is expecting a historic maize harvest of 70 million bags in 2025, higher than the 67 million bags in 2024 and much more than the 34.3 million bags recorded in 2022. He also said the government plans to buy maize directly from farmers to restock the National Strategic Food Reserve. This move aims to stabilise the market and ensure food security for households across the country.
Kagwe explained that the increase in maize production has been driven by the Fertiliser Subsidy Programme. Through this programme, farmers received 21.3 million bags of fertiliser worth Ksh53.25 billion.
The intervention has significantly cut costs for farmers, helping them save around Ksh105 billion.
Fertiliser prices have dropped by up to 67 per cent per 50kg bag, making production easier and cheaper. This has boosted the overall output of key crops and given farmers more confidence as they plan for future seasons.
