Kenyan taxpayers will pay a Ksh269 million fine from former President Uhuru Kenyatta’s subsidy program if the government fails to intervene and pay millers.
During a meeting with National Assembly Agriculture Committee, Cereal Millers Association (CMA) warned that the amount would continue skyrocketing.
According to millers, they were contracted by Uhuru’s administration to subsidise maize flour at Ksh4.4 billion. The government then paid Ksh1.7 billion with Ksh 2.57billion still owed, attracting interest daily.
Paloma Fernandes, the Chief Executive Officer (CEO) of CMA, disclosed intricate details of the contract signed by the millers and former administration.
“It should be noted that under Article 4.2 of the contract, each miller is to charge interest for any outstanding amount,” she told the parliamentarians.
Mohammed Islam, the Chairman of CMA, supported her remarks as he further warned the government to comply and settle the bill.
“We are requesting you honourables to tell the government the sooner they settle this pending bill the better,” he warned.
The demands by the millers were met with strong resistance by parliamentarians drawn from both government and the opposition.
Jared Okelo, Nyando's Member of Parliament (MP), revealed that the millers demanded money for maize flour that never reached the consumer.
“Why did I not see the maize in local outlets? Was it your role to make sure it reached the consumer or where did your role end in the distribution chain?” he asked the millers.
In response, the Kenyan millers told Members of Parliament that they could not confirm whether Kenyans accessed the maize flour produced under the subsidy programme at Ksh100 as planned.
“Unfortunately, we do not have access to any information on specific retail outlets that received the subsidized maize flour under the program. However, it is mentioned in the contract that the Government was responsible for monitoring the retail sales of the flour and ensuring that it was sold at the maximum recommended retail price of Kshs 100 per 2kg packet," the Committee was told.
Gabriel Kagombe, MP for Gatundu South, accused the millers of colluding with the previous administration to loot public funds.
“You are playing games with public money, and I put to you that you are involved in siphoning off public money. You have called us here to rubber stamp and officiate the siphoning,” he castigated the millers.
Okelo further remarked that the rising maize flour prices were likely a plot by the millers to arm-twist the government in paying the Ksh2.57 billion plus the accrued interest.
“What happens to the future? Should I be afraid that in the next month, I will be malnourished?” the MP cast fear that the millers were hoarding maize flour.
On September 13, 2022, President William Ruto expunged the subsidy program as it was used as a conduit to loot public coffers.
“In addition to being very costly, consumption subsidy interventions are prone to misuse, distort markets and create uncertainties, including artificial shortages of the very products we seek to subsidise,” the President stated back then.
