About ten small-scale millers have completely shut their operations due to shortage of maize linked with non-payment of maize delivered under the program
According to the United Grain Millers Association, nearly all the small-scale millers have scaled down on their operations as a result of the situation.
Fears are now common as millers project higher maize flour prices if the situation persists as small and medium-scale millers in the country are struggling for their own survival.
Speaking during the annual millers’ conference in Nairobi, the United Grain Millers Association (UGMA) Chairman Ken Nyaga said the lack of financial muscle to buy the grain has led to a shortage of the substance
“I have like around 10, those who have slowed its almost everybody because they are unable to feed their machines with that maize,” Nyaga said.
Their was also emanate from delayed payment for maize delivered under the subsidy program between July 21st to August 17th last year. The government owes both large and small-scale millers around Ksh. 3 billion. Out of this, small and medium scale millers are demanding over Ksh. 300 million to continue running their operations.
“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 added.
“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.