The government is yet to pay maize millers KES 2.57 Billion arrears owed by the National Treasury from the month-long maize flour subsidy introduced last year.
The previous government introduced a short-term maize flour subsidy programme implemented between July 21 and August 17, 2022.
Under the programme, consumers were to purchase a 2-kilogramme packet of maize meal at KES 100 instead of the prevailing price of KES 210 in a move that was aimed at easing negative consumer sentiment over the high flour prices that had hit a historic high of KES 230
The maize millers say they sold flour worth KES 4.34 billion but were paid only KES 1.76 billion, leaving an outstanding balance of KES 2.57 billion.
The Cereal Millers Association (CMA) now want the Treasury to settle the arrears arguing that some 1,207 invoices from the millers have already been verified to ascertain the authenticity of the sales.
In the subsidy deal, the government signed contracts with 129 maize millers, including 27 members of the CMA, as part of its efforts to cushion consumers against the high price of maize flour.
“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,” said the millers as quoted by Nation.
The subsidy was introduced amid a significant increase in the cost of maize flour which was primarily due to the severe drought that impacted the East Africa region affecting local maize production.
However, the subsidies were scrapped in the current regime, with the government arguing that the economy is operating at a flight mode which resulted to the suspension of subsidies on fuel, electricity, and food to ensure that scarce resources are directed towards priority areas of socioeconomic transformation while ensuring that debt levels are sustainable.
Read also; Relief as Maize Millers Confirm No Increase In Prices of Maize Flour.
