Kenya: Government delays SH2.5 billion pending bills for millers with SH269 million accrued interest

Nairobi — Taxpayers are poised to cough Sh269 million to pay the Cereal Millers Association (CMA) as part of increasing accrued interest in the maize subsidy programme. The government has failed to pay the millers a Sh2.5 billion balance for supplying maize flour at a subsidized price due to the maize shortage that led prices of Unga to skyrocket. In the revelations made before the National Assembly Agricultural Committee, CMA was contracted to supply maize flour worth Sh4.4 billion but the government only paid them Sh1.7 billion with the status of the balance payment in limbo. "The outstanding Sh2.5 billion has not been paid and continues to accrue interest which will be forwarded to the taxpayers and continues to increase until its paid," said Paloma Fernandez, CMA CEO. In the contractual agreement, the Ministry of Agriculture led by former Agriculture CS Peter Munya signed a contract with 129 millers to supply subsidized maize flour from June 19 last year to August 20. The ...