Kenya: Maize flour subsidy debt hits Sh3.4bn

Debts to millers who supplied maize flour under the State’s subsidy last year have hit Sh3.4 billion, pushing some processors out of business even as the government remains adamant on settling the bills. A special review by Auditor-General Nancy Gathungu notes that as the government delayed payment of the bills to some 116 millers who participated in the programme, interest on the debts had accumulated by about Sh400 million by the end of October. The government launched the subsidy towards the end of the term of former President Uhuru Kenyatta to arrest high maize flour prices. Read: Audit and pay millers for maize flour subsidy “To mitigate incidences of hunger, the National Security Council in its fourth special meeting held on July 25, 2022, approved the sifted maize flour subsidy programme for immediate implementation,” the Auditor noted in the special audit on supplementary budget expenditures and withdrawals under emergency spending. The Treasury approved Sh4 billion for ...