Maize worth Ksh9.2 billion is at the risk of going bad as cash strapped National Cereals and Produce Board (NCPB) lacks money to pay for its power bills.
It is reported that power for NCPB was disconnected in several silos, bringing crucial services to a stop.
NCPB is also unable to fumigate the grains for lack of funds, which risks the shelf life of the cereals.
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“We are required to fumigate the grain every two or three months, but lack of funds has seen the exercise halted and this might come at a high cost to taxpayers given that the four million bags in our stores are at the risk of infestation, ” said NCPB communications manager Titus Maiyo as quoted by Business Daily.
Recently appointed acting managing director for NCPB Zakayo Magara was hesitant in commenting on the issue, but admitted that things “things will go wrong without money”.
“I have just assumed office and I cannot give a comprehensive comment now. However, it is common knowledge that things will go wrong for any business without money to administer,” said Magara.
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The Strategic Food Reserve (SFR) and the Ministry of Agriculture owe NCPB Ksh16 billion, which the Board attributes to its troubles.
The Board has already exhausted it overdraft funds and cannot get more funds, after spending all the Ksh2 billion at its exposal.
NCPB earns its income by rendering services for the government, rather than from business, which was done away with during President Mwai Kibaki’s era.
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NCPB is set to release three million bags of maize to maize millers in a bid to curb the escalating price of maize flour in the country, which has hit over Ksh110 from Ksh75 in the last few weeks.
The SFR and the NCPB met last week in a bid to resolve the crisis, but a lasting solution is yet to be established.
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