Millers want Sh2.6bn payout for last year Mexico maize import

Packets of the government's subsidised maize flour subsidised on display at a supermarket in Nairobi. /VICTOR IMBOTO
Packets of the government's subsidised maize flour subsidised on display at a supermarket in Nairobi. /VICTOR IMBOTO

Millers who imported maize from Mexico last year are yet to receive their Sh2.6 billion payment from the government.

The millers said the government promised to clear the debt after farmers who had delivered maize to the National Cereals and Produce Board last year are paid.

The state was to pay the farmers by October but many are yet to get full payment.

Agriculture Chief Administrative Secretary Andrew Tuimur said so far 900 farmers have been paid. Another 226 are yet to receive their cash.

“Out of these, 62 farmers have been isolated by EACC for further investigation,” Tuimur said.

The CAS said the National Treasury has released Sh2.1 billion to clear the balance and that farmers will be paid with the approval of the board of the Strategic Food Reserve.

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In September, Cereal Millers Association chairman Mohamed Islam said they have heard several meetings with Agriculture CS Mwangi Kiunjuri over their delayed payment.

“Most farmers from the North Rift have finished harvesting and the millers will need the money to buy more maize,” Islam said.

In 2016, the government allowed importation of duty-free maize following drought that resulted in maize shortage.

Price of a 2kg packet of unga rose to Sh150. To address the maize deficit and escalating flour prices, the government initiated a maize subsidy programme in May last year to cushion consumers.

The programme was to run up to October 2017 when it was expected that the maize supply could have stabilised in the country. It was later extended to December.

In October, Kiunjuri told MPs the government bought 10.5 million 90kg bags of maize against the approved 12.6 million bags under the subsidy programme by December 2017. Last month, NCPB said they have 240,000 bags of the imported maize is their stores and that part of it has discoloured.

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