State exempts sugar, imported milk powder from tax as food prices soar

An employee restocks the dairy products section at a supermarket in Nairobi, Kenya May 8, 2017. /REUTERS
An employee restocks the dairy products section at a supermarket in Nairobi, Kenya May 8, 2017. /REUTERS

The government has temporarily exempted imported sugar and milk powder from taxation.

This is in a bid to cushion Kenyans from skyrocketing prices of the commodities.

Milk and sugar prices in the country have shot up owing to the ravaging drought.

Treasury CS Henry Rotich, in a May 11 gazette notice, said imported sugar will be duty-free.

"This is with effect from the date of the notice to August 31, 2017," the CS said in the notice released on Friday.

Milk processors will on their part pay no duty on imported milk powder with effect from the date of the notice to July 31, 2017.

A consignment of 30,000 tonnes of maize from Mexico arrived in Kenya on Friday in government's latest move to ease maize flour prices.

Maize flour prices skyrocketed to Sh150 per 2kg packet in the last six months.

Agriculture CS Willy Bett said maize prices are expected to come down in a month's time to at least Sh110 per 2kg packet.

On February 10, President Uhuru Kenyatta declared drought a national disaster and appealed for international aid.

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