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Millers Demand Sh2.6 Billion Maize Subsidy Arrears

Millers now want the government to pay the remaining Sh2.6 billion for the maize subsidy.

In a statement released on Monday, Cereal Millers Association (CMA) Chief Executive Paloma Fernandes said millers sold flour valued at Sh4.3 billion, but only Sh1.7 billion was paid.

The government implemented the maize subsidy scheme in 2022, from July 21 to August 17, to protect customers from the high cost of flour, which was then retailing at Sh230.

Under the programme, consumers were to purchase a 2-kilogramme packet of maize meal at Sh100.

“The CMA has been in communication and is still consulting with the Treasury and other relevant government ministries to aggress all matters related to the maize subsidy programme,” said Ms Fernandes.

Read: Maize Flour Prices Set to Increase by Sh8 in Coming Weeks

Paying the millers will, she elucidated, will allow them to purchase sufficient quantities of raw materials to guarantee food security during this time when the nation is experiencing drought.

“The implementation of this initiative was undertaken through a transparent process that involved the Ministry of Agriculture, Treasury and all beneficiary CMA member millers,” she said.

Ms Fernandes said that other millers were picked in accordance with stringent criteria, such as adherence to laws and proof of their ability to process the maize.

It is then that the former regime negotiated contracts with 129 millers, including 27 members of the CMA, in order to cushion Kenyans from the high cost of maize flour.

Maize flour prices are expected to rise next week.

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