Legislators stop Sh2.5bn maize subsidy money owed to millers
Members of Parliament are locked in a bitter feud with the Cereal Millers Association (CMA) over the Sh4 billion maize subsidy programme that was implemented for a month as former President Uhuru Kenyatt’s tenure drew to a close.
The MPs have slammed the brakes on payment of Sh2.5 billion that the government owes the millers, citing “massive anomalies”. The millers told MPs that the outstanding amount had incurred interest of Sh269 million as at March 10 and warned that failure to pay them would soon lead to a shortage of maize flour in retail outlets.
But the National Assembly Committee on Agriculture and Livestock, which is conducting the probe, now says some millers have pocketed millions in taxpayers’ money despite not being listed in the Integrated Financial Management Information System (Ifmis) and lacking invoice numbers.
The MPs accuse the millers of inflating the debt, even including some millers who joined the association after the subsidy programme ended.
In particular, the committee has questioned the inclusion of Afraha Flour Mills Limited and Trident Millers Limited, both of which joined the CMA in February 2023, while the subsidy programme ended in August 2022, but whose debts were included in the total figure demanded by the millers.
“The two millers joined you after the subsidy ended, how then do you include their payment in the sub-total but they have not supplied under your umbrella,” asked Nyando MP Jared Okelo.
Documents presented to the committee by the millers show that Afraha Flour Mills supplied flour worth Sh80,230,685 and has so far been paid Sh62,712,793, leaving an outstanding balance of Sh17,517,891, while Trident supplied flour worth Sh77,086,276 and has so far been paid Sh67,640,477, leaving an outstanding balance of Sh9,445,798.
The committee has also questioned how Capwell Industries Limited, Karibu Flour Mills Limited and Osho Grain Millers Limited were paid millions when they did not have Ifmis numbers and invoice numbers.
The committee has also questioned the movement of millers including Sh6.9 million owed to Grain Industries limited despite the fact that the company has written off the debt.
However, the millers are pleading with MPs to reconsider their report before it is adopted by the House so that they can be paid.
The MPs instructed the millers to submit all their invoices, both paid and unpaid, tomorrow so that verification can begin.
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