NAIROBI, Kenya, Feb 21 – The government is yet to pay millers Sh2.57 billion who participated in last year’s maize subsidy program.
In mid-2022, former President Uhuru Kenyatta’s administration introduced a subsidy program to cushion Kenyans from high prices of maize flour.
It came after the price of a 2-kilo bag of flour increased to Sh230 from Sh100 previously. Millers were to sell maize flour at a subsidy rate of Sh100.
In total, millers sold Sh4.34 billion, of which the state paid Sh1.77 billion, leaving Sh2.57 billion in arrears.
The Cereal Millers Association (CMA) is now asking the government to release the remaining amount.
“The CMA has been in communication and is still consulting with the Treasury and other relevant government ministries to address all matters related to the Maize Subsidy Program and is urging the Government to pay millers their outstanding amounts, to enable them to buy adequate quantities of raw material to ensure food security during these difficult climatic and economic times,” CMA says.
According to CMA, the state signed a contract with 129 Kenyan millers that included 27 members of CMA.
“The Treasury opened a special account and credited it with Kshs4 Billion, which was part of the estimated Kshs 8 billion required for the program.”
