State releases maize reserves to ease soaring prices

In a move aimed at escalating the cost of flour and an impending maize shortage, the government has released an initial consignment of 200,000 bags of maize from the National Strategic Reserve.

Agriculture Cabinet Secretary Mutahi Kagwe made the announcement on Monday, May 26, 2025, stating that the subsidized maize will be distributed to registered millers nationwide.

Kagwe explained that the maize will be dispatched through designated National Cereals and Produce Board (NCPB) depots in the North and South Rift, regions, known for their agricultural significance and concentration of milling firms.

"This intervention is meant to shield consumers from the recent spike in flour prices and maintain a steady supply countrywide," said the CS.

He emphasized that the distribution process has been structured to uphold transparency and accountability.

The maize from the strategic reserves will be sold to millers at a subsidized price of Sh4,250 per 90-kilogram bag, significantly below current market rates.

The move is expected to drive down the cost of flour in retail outlets in the coming weeks.

To qualify for the maize allocation, Kagwe said millers must meet strict eligibility requirements.

"Millers must declare their milling capacity and submit key documents including a certificate of incorporation, tax compliance certificate, and KEBS certification," read the statement.

The government started receiving payments on Thursday, May 22, with full-scale sales and collection expected to begin Monday, May 26.

Access to the full allocation will be granted only to millers who comply with government measures designed to prevent hoarding and promote fair distribution.

An initial payment of 25% of the total allocation is mandatory, along with proof of milling and market distribution. The remaining 75% will be released upon submission of a maize utilisation report.

"This documentation is essential before the balance can be accessed," Kagwe stressed.

The move comes amid growing anxiety over food security, with erratic rainfall and soaring production costs hampering maize output.

Consumers have already felt the pinch through rising flour prices.

While industry players have applauded the government’s short-term response, they are urging longer-term interventions.

"This is a welcome relief, but the real solution lies in empowering farmers to boost yields and reduce post-harvest losses," said a spokesperson for the Cereal Millers Association.