Maize millers demand payment of pending Sh2.57B from gov't over Uhuru's subsidized flour program

Trucks loaded with maize queue to deliver the produce to the National Cereals and Produce Board, Eldoret. ~NMG

Maize millers demand payment of pending Sh2.57Billion from government over Sh 100 subsidized Unga program under Uhuru regime.

As a result of the National Treasury's request to the National Assembly for assistance with inquiries into the Sh4 billion given to processing companies from the maize subsidy program in the previous year, it is possible that payouts to the manufacturers would be delayed.

Treasury Cabinet Secretary Njuguna Ndung'u stated that despite the fact that the Sh4 billion is claimed to have been reimbursed to millers, Treasury is unable to track down the exact companies that received the cash. This is despite the fact that there is an assumption that millers are owed another $4 billion from the government.

 

Prof. Ndung'u stated on Monday before the House's Budget Appropriations Committee that "Parliament could perhaps assist us to conduct an investigation of the Sh4 billion subsidy finances, and since we do not have the potential to do it within us because it could take a political angle." This was in response to a question regarding whether or not the House had the authority to examine the money.

 

The subsidy program took a partisan turn, with suspicions being raised that it might not have achieved the target demographic. As a result, there is a requirement for inquiries into the matter since there is a possibility that it did not.

 

The Sh8 billion subsidy that was implemented by former President Uhuru Kenyatta to manage the excessive cost of flour, which had surpassed Sh250 for a two-kilogram packet, has resulted in the sum of cash that is owed to millers. 

This debt was incurred as a direct consequence of the introduction of the subsidy. Because of the plan, the price of the staple was reduced to Sh100.

 

It was widely believed that the subsidy scheme, which began only a few days before the election, was a cynical tactic to win over votes.

 

The activity, which limited millers to distributing flour at a price of Sh100 for a two-kilogram packet, was hampered by a lack of the item in stores, which forced supermarkets to cap customers' purchases at a maximum of two packets each.

 

This occurs at a moment when millers have, since August of last year, been seeking Sh4 billion from the Ministry of Agriculture as a balance of what the country owes them from that same flour that they provided the economy even during the subsidy period. 

This is a result of the fact that millers filled the market with flour in the situation where the government was providing subsidies.

 

Millers will offer premium maize flour alongside discounted brands, as stated in the article.

 

Principal Secretary for Agriculture Harsama Kellow said that the issue is not now with the Ministry of Agriculture but rather with the Treasury at this time.

 

Mr. Kellow said that "this matter is now being addressed by the Treasury" and that "they are better suited to answer concerns from millers."