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State yet to pay millers billions for subsidised flour
The subsidy programme lowered the price of a two-kilogramme packet of flour to Sh90. FILE PHOTO | NMG
What you need to know:
- Maize millers say they are struggling to procure raw materials as they are cash-strapped.
- The subsidy programme was introduced last year in May as a government intervention on the rising cost of flour that had hit a high of Sh153 per two-kilo packet.
- The state spent over Sh6 billion under the programme last year, which saw over five million bags of maize imported to bridge the deficit.
Maize millers are struggling to stay in business following delays by government to pay them billions of shillings accrued during the maize subsidy programme that ended last December.
The debts result from transport rebate that the government was supposed to refund the processors for ferrying maize from the Port of Mombasa to their milling plants and the cost difference incurred in purchasing the grain.
