How government left millers chained with Sh1billion subsidy debt

Different millers who supplied maize flour under the government subsidy programme claim that the government failed to honour their agreement to pay them with debts estimated to be more than Sh1 billion, when the scheme closed.

The group of millers were left in a dilemma a fortnight after the programme time elapsed.

“We were told that the money was depleted and that the Ministry wanted to do all the calculations first before requesting for additional funds to clear all invoices,” Robert Kimani of Kiwa Millers said.

The resulting effect can be devastating for the entire business ecosystem due to its wide impact on profitability, productivity and trust. Supply chains cannot be sustained and value chains are decimated.

During the launch of the subsidy programme Sh8 billion was used to support it, which ended on 20 August 2022. It involved a contract signed by 70 millers initially and more were later added.