Millers now want the government to clear an outstanding balance of Sh2.6 billion in the maize subsidy they are owed.
Cereal Millers Association (CMA) Chief executive Paloma Fernandes in a statement on Monday said millers sold flour worth Sh4.3 billion but only Sh1.7 billion was paid leaving an outstanding bill of Sh2.5 billion.
The maize subsidy programme was introduced by the government in mid-2022 and it run between July 21 and August 17 to cushion consumers from the high price of flour that was retailing at Sh230 at that time.
“The CMA has been in communication and is still consulting with the Treasury and other relevant government ministries to aggress all matters related to the maize subsidy programme,” Fernandes said.
According to Fernandes paying the millers will enable them to buy adequate quantities of raw materials to ensure food security during this period when the country is facing hunger due to drought.
“The implementation of this initiative was undertaken through a transparent process that involved the Ministry of Agriculture, Treasury and all beneficiary CMA member millers,” Fernandes said.
The official has further noted that other millers were selected based on strict criteria including adherence to government regulations and proof of their capacity to process the maize.
As a result, the government signed contracts with 129 millers including 27 members of the CMA as part of the effort to cushion Kenyans against the high price of maize flour.
The skyrocketing prices have been attributed to the severe drought that has impacted the East African Region including Kenya.
The adverse weather conditions coupled with other factors such as global shortage of non-GMO maize resulted in a sharp rise in the price of a 90kg bag of maize grain from Sh3,000 to Sh6,800 consequently pushing the price of flour higher.
