Kenya: Legislators accuse maize millers of breaching subsidy deadline deal

Published Mar 15, 2023

Tridge summary

The Kenya Parliament's House Committee on Agriculture has accused millers of supplying maize flour beyond the end of their contracts, exacerbating a dispute over a debt of Sh2.9 billion owed to the millers by the government. The committee's chairperson, John Mutunga, suggested that millers may have continued supplying subsidy flour for up to six days after the program's end, despite the government's denial of such extensions and millers' claims of not receiving revocation notices. This situation arose from a subsidy program initiated by former President Uhuru Kenyatta in 2022, intended to address escalating maize prices, but which has led to significant financial challenges for the millers due to the government's delayed payments and interest accrual. The millers' financial strain is further worsened by the high cost of maize and diminishing demand for flour, compounded by the committee's decision to withhold payment to millers, a move the millers argue is unfair in light of their continued supply and the government's failure to provide proper notification of program changes.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

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 House Committee on Agriculture said millers might have extended the supply of subsidy flour up to six days, way after the contract between them and the State had been revoked. However, millers said they were not served with a revocation letter and they only learned of it in social media. “Why did you continue supplying the flour when the Ministry of Agriculture had stopped the programme,” asked the committee’s chairperson John Mutunga. Read: State yet to pay millers Sh4bn in maize plan In response, millers said the letter was not addressed to them but meant for Agriculture PS from the Cabinet secretary. “The letter ending the subsidy was not addressed to us,” millers told the House Committee on Tuesday. The subsidy programme, which was announced by former President Uhuru Kenyatta on July 20, 2022, was ...

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