The government stands to lose over 5 billion shillings for the 1.7 million bags of maize it released to millers at a low cost under a program that was to protect customers from buying flour at high prices.
The Strategic Grain Reserve (SGR), through its chairman Dr. Noah Wekesa, said that the government should take responsibility for the losses experienced and that there should be a Cabinet approval of the same if a further 1.5 million bags of maize are to be released to millers.
“We sold 90kgs bags of maize at a much lower price of 2,300 shillings compared to the usual 3,000 shillings, so the government ought to take responsibility for the losses,” said Dr. Noah Wekesa.
The National Cereals and Produce Board (NCPB) is releasing maize selling at 2,300 shillings per 90kg bag against 3,200 shillings by traders due to a shortage of maize in the market.
SGR chairman also says that millers have reportedly exhausted the 1.7 million bags of maize released for household consumption and the additional 300,000 bags released for animal feeds in June, causing the flour prices to go higher.
Agriculture Chief Administrative Secretary Andrew Tuimur said the government plans on importing about 12.5 million bags of duty-free maize by next month, seeing that there is still enough maize for household consumption to last this month.
In 2017, the cost of flour had risen to 153 shillings per 2kg pack, when the government, in an effort to reduce the prices of this commodity, sought to import 10.4 million bags of maize from Mexico and other African countries