- Millers sold maize to the government at Sh3,600 per bag and later bought the same at Sh2,300
- PS defends decision to buy maize from local millers, saying it was sanctioned by the Cabinet
The government could have lost Sh4.5 billion in fake maize imports in 2017, MPs heard yesterday.
The maize was meant to cushion Kenyans from high cost of maize flour experienced in the country but well connected maize cartels took advantage and made a kill from the arrangement.
It emerged that the maize which was supposed to be shipped into the country from oversees was instead bought locally from five companies.
The local companies are Export Trading that pocketed Sh 3.5 million, Hydrery P Limited which sold maize worth Sh 3.1 billion to the government, Kitui Millers Limited (Sh400 million), Mombasa Maize Millers (Sh609 million) and Pembe Flour Mills (Sh400 million).
The five sold maize to the government at Sh3,600 per bag and later bought the same from the government again at Sh2,300 for each bag under the government subsidy arrangement for local millers.
Appearing before the Opiyo Wandayi-led committee, Agriculture PS Hamadi Boga and NCPB operations manager Jones Kanyaa admitted that Kitui Millers, Pembe Maize Millers and Mombasa Maize Millers bought the same maize they had earlier sold to the government at Sh2,300.
Boga however defended the decision to buy maize from local millers, saying it was sanctioned by the Cabinet.
The decision – he noted – was meant to lower prices of maize flour to Sh90 following an outcry from Kenyans after the commodity started retailing at Sh130 for 2kg packet.
“If I was the one who was at the helm then I would have allowed millers to import the maize and then give them tax remission,” he told the committee.
“The circumstances around this subject are very controversial. This was the time we had unga issue and that is why this maize was basically nationalized and those who had the maize were compelled to give it to the government.”
MPs sitting in the Public Accounts Committee also heard that crucial documents pertaining to the purchase of the maize could not be traced by the Agriculture ministry.
Boga and his team were appearing to explain to the House team the 2016-17 importation of maize that saw government spend Sh11.6 billion.
MP Wandayi, Tom Kajwang (Ruraka), Ndindi Nyoro (Kiharu), Daniel Rono (Keiyo South) and James Gichuhi (Tetu) hinted of the possibility of the committee sanctioning a fresh probe into the 2017 maize importation.
“Are you telling us that the government bought maize from Kitui Millers and said you imported it? It is clear that is a case where we had fake importation of maize. This is very serious,” Wandayi said.
“The same government that sold you maize at Sh3,600 is the same maize that you bought at Sh2,300. If this is not stealing, Mr PS, then what is stealing?” posed Kiharu legislator Ndindi Nyoro.