Unga's Subsidy Program Screeches To a Halt after Millers Denies Any Deal Signed

Collins Ogutu | 1 year ago
Unga's Subsidy Program Screeches To a Halt after Millers Denies Any Deal Signed

Kenyans will continue to dig deeper into their pockets to pay for the price of Unga after millers did not reach a deal with the Ministry of Agriculture  on Monday to subsidize the prices in the country as it has been widely reported.

In a  directive, by the Ministry of Agriculture, the subsidy programme which is expected to run for for weeks would have cushioned consumers who have been paying between Ksh 230-250 for a 2kg packet of unga to Ksh.100.

Following the subsidy programme announced Monday, a 1Kg packet will retail at Ksh 52 while half a kilo retailed at Ksh 30.

According to the subsidy program the government would have in turn compensated millers for the difference.

"The market price of maize (per 90kg bag) as at the date of this contract is in the range of Ksh 5,800 and Ksh 6,000. Based on this market price, MOALFC will compensate the miller for each unit sold," the documents read in part.

At the moment, Kenyans are now looking at the government's intervention to stem the rise in the price of maize flour with engagements on how to bring down the cost of Unga set to continue later this week, according to a report by Citizen TV.

Cereal Millers Association Chief Executive Paloma Fernandes told Citizen TV that "The Cereal Millers Association (CMA) is consulting with the Ministry of Agriculture and other relevant stakeholders on how best to reduce maize flour prices. Negotiations are at an advanced stage, but no prices have been set."

She added, "We will advise all our stakeholders on progress made towards achieving our goal of providing adequate, affordable, and nutritious maize flour.”

To enforce compliance, the government had vowed to dispatch its representatives to the millers’ premises and depots to ensure the commodities are sold at agreed prices.

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