The subsidised Sh90 maize flour will be discontinued mid this month after Treasury allocated an additional Sh3 billion to cover maize import costs from August.
The new allocation brings the total amount so far spent to cushion consumers from high flour prices to Sh6.7 billion.
The government had earlier allocated Sh3 billion to lower the price of a 90 kg bag of maize to Sh2,300 from above Sh4,000, offering importers a rebate of about Sh1,700.
Treasury secretary Henry Rotich Wednesday told MPs while reviewing the supplementary budget that the subsidy plan will end in weeks with expectations that millers will have access to fresh maize harvests.
“We have extended subsidy programme to mid-October, therefore, requiring additional resources to continue the subsidy that was expected to have ended in August,” Mr Rotich told the ad hoc committee on supplementary budget.