The Retail Trade Association of Kenya (Retrak) now wants millers to pay back the Sh175 million they had paid for deliveries of the unsubsidized maize flour.
The association in a statement on Thursday said they will not be able to sell the delivered maize flour at the discounted price of Sh100 if they are not refunded the cash.
The chief executive officer for Retrak Wambui Mbarire said they will comply with President Uhuru's directive on food subsidy once they receive their amount.
"We have commenced engagements with the respective maize meal suppliers to recover more than Sh175 million, which is a cumulative estimate of the higher price earlier paid to them to facilitate deliveries," she said.
Mbarire also raised concern over unsold stock amounting to about 750 tonnes.
"While the new price tags are affixed, analysis indicates that as of the close of businesses on July 20, 2022, retailers affiliated with RETRAK were holding unsold stocks amounting to more than 750 tonnes," she said.
"We have been duly advised on the particulars of the directive and compliance efforts to ensure the sale of maize meal Sh100 with immediate effect are now underway."
She noted that fast-moving commodities such as unga are paid in advance by retailers or in very thin credit terms which do not exceed 14 days.
"We are optimistic that the engagements will bear fruit and retailers will recover these amounts as rebates or credit notes to facilitate smooth service delivery to our esteemed customers," she said.
On Wednesday, Uhuru unveiled the 5th stimulus package on food subsidies meant to help cushion Kenyans against the cost of living.
Among them was ordering the maize flour packet to retail at Sh100 for a 2kg packet.
"Maize flour shall retail across the entire territory of the country at the price of Sh100 down from Sh205 for a 2kg packet until otherwise directed," he said.
