•The chairman called upon the Government to honor their commitment and pay up millers what they owe them.
•“We did what we were supposed to do to ensure Kenyans do not pay for the high cost of unga. If the Government does not pay up, we might have more millers closing,” he said.
Ken Nyaga, chairman of the United Grain Millers Association (UGMA), an umbrella of small-scale millers in the country, said they do not have money to run their businesses, and many have been forced to close shop.
He said the Government owes small-scale millers Sh300 million for the Sh100 maize meal subsidy programme that the Government introduced last year.
The subsidy was aimed at cushioning Kenyans against the high cost of unga which had reached a high of Sh230 per two-kilo packet of maize flour.
“This has caused some millers to close because they do not have money to buy stocks. Others have bank loans that they have been paying up and they are not able to do so,” said Nyaga.
The chairman called upon the Government to honor their commitment and pay up millers what they owe them.
“We did what we were supposed to do to ensure Kenyans do not pay for the high cost of unga. If the Government does not pay up, we might have more millers closing,” he said.
Nyaga said the cost of maize is also a contributing factor to some extent because there is scarcity and what is available is high with a 90kg bag selling at Sh6,000.
“The Government should pay what is owed to millers and also bring maize imports at a cheaper price than what is being offered in the market. This will help us lower the cost of unga and we will be able to pass this benefit to the consumer,” he said.
In February, the Cereal Millers Association, an umbrella of large scale millers in the country, said in a statement that the government is yet to pay members Sh2.57 billion.
Last year, the state signed a contract with 129 millers to participate in the maize subsidy programme. Out of these 27 members were from CMA.
In total, millers sold Sh4.34 billion and so far only Sh1.77 billion has been paid up leaving Sh2.57 billion in arrears.
“The CMA has been in communication and is still consulting with the Treasury and other relevant government ministries to address all matters related to the Maize Subsidy Program and is urging the Government to pay millers their outstanding amounts, to enable them to buy adequate quantities of raw material to ensure food security during these difficult climatic and economic times,” CMA said in the statement.