Government releases 200,000 bags of subsidised maize to millers to stabilise flour prices
Agriculture Cabinet Secretary Senator Mutahi Kagwe said the consignment will be sold at a subsidised rate of Sh4,250 per 90-kilogramme bag and distributed through select depots in the North and South Rift regions.
The government has released 200,000 bags of maize from the National Strategic Grain Reserve to registered millers to stabilise flour prices and prevent an imminent shortage.
In a statement on Monday, Agriculture Cabinet Secretary Senator Mutahi Kagwe said the consignment will be sold at a subsidised rate of Sh4,250 per 90-kilogramme bag and distributed through select depots in the North and South Rift regions.
More To Read
- Kagwe calls for overhaul of agriculture funding, criticises three per cent budget allocation
- CS Kagwe calls for removal of value-added tax on key farm inputs to boost sector competitiveness
- Government leases four state-owned sugar mills to private firms for 30 years
- Government defends the sale of donated Russian fertiliser
- Maize flour prices rise as local supply shrinks amid rising demand
- Increased awareness of fertiliser subsidy programme fuelling demand, CS Kagwe says
He noted that the stocks, currently held by the National Cereals and Produce Board (NCPB), are being allocated to both miller associations and individual millers who meet the government's eligibility requirements.
To qualify, millers must present documentation including a certificate of incorporation, a valid tax compliance certificate, a KEBS quality certificate and declare their milling capacity.
“The subsidy is expected to stabilise maize and maize flour prices, cushioning Kenyans from any price spikes,” Kagwe said.
He noted that the NCPB began receiving payments for the subsidised maize on Thursday, May 22, with sales and collections expected to intensify from Monday, May 26.
Initial payment
To deter hoarding, millers have been urged to make an initial payment of 25 per cent of their total allocation. Kagwe said the remaining 75 per cent will only be approved once millers provide proof of milling and flour distribution, along with a maize utilisation report.
“All millers are expected to immediately collect their consignments upon payment, commence milling, and distribute the flour,” he said.
He said millers have already begun collecting maize from various NCPB outlets across the country, with Eldoret and Moi’s Bridge identified as major pick-up points.
The ministry said the intervention forms part of a broader government strategy to shield consumers from rising food prices and maintain a steady supply of flour in the market.
Earlier this month, the government sought to allay fears of a possible hike in maize flour prices, assuring Kenyans that the country’s strategic grain reserves were sufficient to maintain market stability.
Speaking during a press briefing, Kagwe noted that the Ministry of Agriculture had already taken proactive steps to contain flour prices despite market volatility and supply constraints.
“There should be no panic about the price of Unga going up. It is not going to go up. We are going to ensure it doesn't go up by releasing the strategic grain reserves that we have. We have got sufficient strategic grain reserves,” he said.
Top Stories Today
