Shopkeepers in Nairobi are taking advantage of the shortage of Sh100 subsidised maize flour by hiking the prices between Sh110 and a high of Sh200.
A spot check by the Star on Monday showed that shopkeepers in different areas in Nairobi have increased the price of the two-kilo packet.
Many of the small shop owners are cashing in on the shortage of unga in the supermarkets and the desperation of consumers.
Nearly three weeks after President Uhuru Kenyatta announced the Fifth Stimulus Programme covering the supply and distribution of maize meal across the country, shelves remain empty as Kenyans desperately seek to buy Sh100 maize flour.
Many of the unga shelves remain empty and in other supermarkets, only a few of the premium brands like Amaize, Hostess and Raha are available and they are retailing at around Sh250.
The Sh8 billion National Maize Flour Subsidy programme was announced on July 20, 2022 to help lower the cost of living for vulnerable households.
The President pronounced that a 2kg packet of maize flour shall retail at the price of Sh100 down from Sh205 until otherwise directed.
On August 1, 2022, Agriculture PS Francis Owino said they have started paying millers who signed to participate in the subsidy program, and have since submitted their invoices.
He said the ministry has so far received invoices worth Sh325 million from 128 millers who are in the programme.
“Receiving and processing of invoices for payment commenced on July 26, 2022, and continues. To date, we have received invoices valued at Sh325,480,032. Of this, Sh160,920,425.75 of payments have been processed as of this morning,” Owino said.
He spoke during a press briefing on the update on the implementation of the maize subsidy programme at Kilimo house.
The four-week window of the subsidy programme will come to an end from August 14, 2022, but Kenyans can hardly access the commodity.
However, millers who spoke to the Star on condition of anonymity said they are being cautious about supplying maize flour under the national subsidy programme.
The millers want assurance that the government will meet its end of the bargain and make the payments on time.
They don't want a repeat of the 2017 subsidy programme where to date they are still owed about Sh500 million by the government.
Millers said they are supplying flour in small quantities to “play safe as we do not want to burn our fingers."
The PS confirmed that the Sh160.9 million has been drawn from the escrow account which the government deposited Sh4 billion out of the set-aside Sh8 billion.
He said to date 3.2 million kilos of unga have been supplied to the market and that this is expected to increase this week.
“We have set a standard to ensure that the turnaround time for payment of all invoices received is initiated immediately and done within 24 hrs. This is a standard we commit to uphold and maintain,” Owino said.
(Edited by Tabnacha O)
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