Kenya: Audit and pay millers for maize flour subsidy

Published Mar 16, 2023

Tridge summary

The article highlights the concerns of Parliament and millers regarding the government's failure to honor its commitments in the maize flour subsidy program, introduced by former President Uhuru Kenyatta in 2022 to reduce maize flour prices. The program, which allowed private firms to participate, has run into issues with millers supplying past contract periods and the government owing them Sh2.9 billion. Despite the program's success in lowering prices, the government's reluctance to pay has frustrated participating businesses, potentially damaging future public-private partnerships. The article calls for the government to settle the outstanding bills to maintain trust and support from the private sector.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

It is a shame that the government appears reluctant to honour its side of the bargain regarding last year's maize flour subsidy programme under which private firms stepped forward to help keep the prices of the staple low. Parliament has blamed millers for supplying maize flour past the contract period, further complicating the Sh2.9 billion that the processors say they are owed by the government. The subsidy programme, which was announced by former President Uhuru Kenyatta on July 20, 2022, was initially to run for an indefinite period. The Ministry of Agriculture and the Treasury have the data to audit and establish legitimate claims that should be paid to the businesses for the subsidised flour they sold last year. The government might in future need the private sector to bail the country out under a similar arrangement. But ...

Source: Businessdailyafrica