The National Cereals & Produce Board (NCPB) has released the first batch of 200,000 bags of maize from the National Strategic Grain Reserve (NSR) to registered millers to help stabilize flour prices and curb a potential shortage.
- •According to the ministry of Agriculture, millers will be required to indicate their milling capacity, present a certificate of incorporation, a tax compliance certificate, and a KEBS quality certificate.
- •The stocks held by the NCPB will be allocated to Miller Associations and individual millers in 90 Kg bags at Ksh 4,250 per bag.
- •The first batch will be distributed through depots in the North and South Rift regions.
“NCPB started receiving payments for the maize on Thursday, 22nd May 2025, with sales and collections expected to increase starting Monday, 26th May 2025. The subsidy is expected to stabilize maize and maize flour prices, cushioning Kenyans from any price spikes,” said Mutahi Kagwe, Agriculture Cabinet Secretary.
“To deter stock hoarding, millers allocated the NSR maize are required to make an initial payment for 25% of their total allocation and provide proof of milling and distribution of flour before the full allocation is allowed. They must also submit a maize utilization report before the payment for 75% is accepted.”
Maize, a staple food among many households has seen price surge in the past few months with the Kenya National Bureau of Statistics (KNBS) indicating an increase of 5.8% in the prices of Maize Grain Loose and 6.5% jump in fortified maize flour, according to the April Inflation Highlights.
Maize production decreased by 6.1%, from 47.6 million bags in 2023 to 44.7 million bags in 2024 this was largely attributed to erratic short rains in 2024 that affected maize production. Kenya’s maize production has been averaging above the 40 million bags annually from 2020 save for 2021 and 2022 when production was at 36.7 million and 34.3 million bags respectively. In 2020, the country recorded a production 42.1 million bags compared to 2023’s 47.6 million bags.
Upon payment for their maize allocations, all millers are expected to immediately collect their consignments, begin milling, and distribute the flour. Millers are currently picking the maize from NCPB outlets across the country, mainly Eldoret and Moi’s Bridge.
The production of maize, millet, and potatoes fell short of 2023 levels last year, creating the prospect of price increases before the harvest season expected this month in some parts of the country.
