State releases 200,000 bags of maize to stabilise flour prices

Agriculture CS Mutahi Kagwe says release of maize to millers is part of the government's broader food security and price stabilisation strategy. [File, Standard]

The government has released 200,000 bags of maize from the National Strategic Grain Reserve (NSGR) in a move aimed to stabilise the price of flour and avert a potential shortage.

The maize is being distributed to licensed millers at a subsidised price of Sh4,250 per 90kg bag, with initial batches already dispatched through depots in the North and South Rift regions.

This comes as maize prices have shown signs of rising, threatening to push the cost of flour (unga) higher and piling pressure on household budgets.

Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe says the move is part of the government's broader food security and price stabilisation strategy.

"This release is a critical step to protect consumers from rising food prices while ensuring market stability," said Kagwe.

The maize, held by the National Cereals and Produce Board, will be allocated to millers' associations that meet specific eligibility requirements. These include a valid certificate of incorporation, a tax compliance certificate, a Kenya Bureau of Standards quality certificate, and proof of milling capacity.

Millers began making payments for their allocations on May 22 and full-scale collection and milling are expected to gain momentum from this week.

To prevent hoarding and ensure swift market impact, the ministry has introduced strict compliance measures. Millers are required to pay a quarter of the total cost upfront before collection, commence immediate milling and flour distribution, and submit a maize utilisation report before the remaining 75 per cent payment is approved.

"We want to ensure that the subsidised maize goes directly into production and reaches consumers quickly.

''This is not a time for hoarding or speculation," Kagwe said.