Looming Maize Flour Shortage As Millers Suspend Operations

Millers have warned of a reduced maize flour supply in the local outlets from next week, as they are likely to slow down production owing to the increasing political uncertainties.

This is despite the government’s assurance that the commodity will be available in large amounts in outlets across the country. Crops Development and agricultural Research PS Francis Owino termed the shortage that is being witnessed across the country as artificial, pointing out panic buying among consumers.

“Any unga supplied in the supermarkets is hurriedly bought by the consumers,” said Agriculture Principal Secretary Francis Owino said on Monday.

The PS had earlier urged Kenyans not to panic, as the country has enough stock of maize in its stores. he attributed the shortage of the shortage in Supermarkets to unfriendly credits given to the millers.

“Supermarkets don’t buy maize flour in cash. They are supplied to sell and pay after 45 days. Therefore, millers are finding it difficult to supply the subsidized maize flour to them,” Owino said.

The supply hitches are likely to revert the government’s four-week plan to enhance access to the most-sought commodity. Some millers also fear that the state might disown the program, subjecting them to massive losses.

Mr. Owino urged retailers to cut down the time they take to pay millers from 45 days to at least two days in a fresh bid to ensure the commodity is highly accessible to the consumers.

“We have told millers to agree with the retailers on the way forward in regard to the payment time. Government is spaying them in 24 hours and retailers should also cut the credit period to at least two days,” he said.

According to the CEO of Retail Trade Association of Kenya (RETRAK) Wambui Mbarire, millers have been selling flour to traders who are paying in cash as opposed to those who would pay later.

On Monday, the ministry of agriculture said that 129 millers gave a nod to the Ksh 100 per 2kg packet subsidy program. The ministry added that 160 million shillings have already been released to the millers for the program.

The government recently released 8 billion shillings to finance the four-week subsidy program which saw the price of a 2kg packet of maize flour drop to 100 shillings from 210 shillings.

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