The government has released 200,000 bags of maize from the Strategic Grain Reserve (SGR) in a bid to stabilize the rising cost of maize flour (unga) and cushion consumers from further price increases.
Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe, in a statement, confirmed that the maize stocks, held by the National Cereals and Produce Board (NCPB), will be allocated to registered millers at a subsidized rate of Ksh 4,250 per 90kg bag.
This intervention comes as the country faces rising maize flour prices, with recent data showing the average cost of a 2kg packet of fortified maize flour increased by 2.6% in April to Ksh 169.41, up from Ksh 165.05 in March. Similarly, the price of loose maize grain rose by 2.9% to Ksh 66.60 per kilogram.
“To be considered for allocation, millers must provide their milling capacity, a certificate of incorporation, a valid tax compliance certificate, and a KEBS quality certificate,” said CS Kagwe.
The first batch of maize is being distributed through select NCPB depots in the North and South Rift regions, with payments from millers having started last Thursday.
To ensure accountability and discourage hoarding, millers are required to make an upfront payment for 25% of their allocated maize. The remaining 75% will only be released upon submission of a milling and distribution report, alongside a detailed maize utilization report.
“All millers are expected to promptly collect their allocations, begin milling immediately, and distribute the flour to the market upon completing payment,” added Kagwe.
The government hopes that this measure will help ease supply constraints and lead to a reduction in flour prices over the coming months.
Written By Rodney Mbua
