Agriculture Cabinet Secretary Mutahi Kagwe has said that the
government has released the first batch of 200,000bags of maize from the National
Strategic Grain Reserve (NSR) to millers.
This is part of efforts by the state to stabilise prices and
curb any potential shortage that may arise.
According to Kagwe, the first batch will be distributed
through select depots in the North and South Rift regions at the cost of Sh4,250
per bag of 90 kilograms.
“The stocks held by the National Cereals and Produce Board
(NCPB) will be allocated to Miller Associations and individual millers in 90 Kg
bags at a subsidized rate of Sh4,250 per bag,” he said.
“The subsidy is expected to stabilise maize and maize flour
prices, cushioning Kenyans from any price spikes.”
The Cabinet Secretary went on to say that millers will be
required to indicate their milling capacity, present a certificate of
incorporation, a tax compliance certificate, and a KEBS quality certificate to
access the subsidised maize.
Kagwe insisted that upon receiving the allocations, millers must
make an initial payment of 25 per cent of what is allocated and provide proof
of milling and distribution of flour before the full allocation is allowed.
“They must also submit a maize utilisation report before the
payment for 75 per cent is accepted.”
The CS noted that NCPB started receiving payments for the
maize on Thursday, May 22, with sales and collections expected to increase
starting Monday, May 16, 2025.
Millers are currently picking the maize from NCPB outlets
across the country, mainly Eldoret and Moi’s Bridge, he added.
“Upon payment for their maize allocations, all millers are
expected to immediately collect their consignments, begin milling, and
distribute the flour,” Kagwe added.
This decision follows weeks of fears that maize prices could
rise over a shortage.
It led to the government allowing importation of at least 5.5
million bags of yellow maize to ease pressure on demand for white maize, which is currently being used to also make animal feeds.