Ten small-scale maize millers have shut down their operations completely due to the shortage of maize and non-payment of maize delivered under the subsidy program.
According to the United Grain Millers Association, almost all small-scale millers have reduced the size of their businesses as a result of the circumstances.
The United Grain Millers Association (UGMA) Chairman Ken Nyaga remarked during the annual millers' conference in Nairobi that the 200 members' activities have been severely hampered by a shortfall caused by a lack of financial clout to purchase grain.
According to him, the miller's problems are also a result of unpaid bills for maize that was given under the subsidy programme between July 21 and August 17 of last year. Both major and small-scale millers owe the government close to 3 billion shillings.
Because of this, small- and medium-sized millers are asking for more than 300 million kenya to continue operating.
“Most millers were operating on bank facilities, I know some have been auctioned, some have shut down, others slowed on operations because they cannot buy maize….so we are looking at a very hard time when we don’t have money to purchase, because it is owned by the same government that is expecting us to buy and bring the cost of flour down,” Nyaga said.
The pricey maize on the market now sells for an average of Kes. 6,000 per 90-kilogram bag as opposed to Kes. 4,500 two months ago, which makes the situation much worse.
“Find a way of reducing maize prices because as the price goes down, consumer benefits….something has to be done to find some ways for us to continue with our business,” stated Nyaga.
As part of efforts to lower the price of food, the government says it is importing 4 million bags of duty-free maize this month. The first shipment is anticipated next week.
