Kenyan government releases 200,000 bags of strategic maize to millers to curb price surge
The move comes amid concerns over tight maize supplies and the resulting impact on consumer prices for staple foods particularly ugali
KENYA – The Kenyan government has released 200,000 bags of maize from the National Strategic Grain Reserve (NSR) in a bid to stabilize the rising cost of maize flour and avert potential shortages.
Agriculture Cabinet Secretary Mutahi Kagwe confirmed the release, stating that the maize will be sold at a subsidized price of KES 4,250 (US$ 32) per 90-kilogram bag to registered millers in the North and South Rift regions.
The move comes amid concerns over tight maize supplies and the resulting impact on consumer prices for staple foods particularly ugali.
By releasing the strategic reserves, the government aims to cushion vulnerable households and stabilize the market ahead of the next harvest season, expected in August. The Ministry has pledged to monitor the subsidy rollout closely and take action against any millers found hoarding or inflating prices.
The maize will be distributed through select National Cereals and Produce Board (NCPB) depots, with allocations made to registered millers and milling associations.
To qualify, the statement noted that millers must present a certificate of incorporation, tax compliance documents, a Kenya Bureau of Standards (KEBS) quality certificate, and proof of milling capacity.
As part of the subsidy mechanism, millers are required to make an upfront payment of 25% of the total value of their allocated maize, and will only receive the remaining consignment after submitting milling and distribution reports. They are also obligated to provide maize utilization reports to prevent stock hoarding and ensure transparency.
“Upon payment for their maize allocations, all millers are expected to immediately collect their consignments, begin milling, and distribute the flour,” stated Kagwe, emphasizing accountability and timely processing.
The intervention is a response to the seasonal pressure on maize supply in Kenya, worsened by reduced yields in parts of the Rift Valley due to erratic rainfall.
Data from the Kenya National Bureau of Statistics (KNBS) show that maize flour prices surged by over 15% in the first quarter of 2025, pushing inflation on basic food items to a three-year high.
Kenya’s average annual maize production stands at about 3.7 million metric tonnes, while consumption surpasses 4.2 million tonnes, necessitating occasional imports and strategic stock interventions.
According to the Eastern Africa Grain Council (EAGC), local stocks have tightened over the past two months due to delayed cross-border imports from Uganda and Tanzania, further straining domestic supply.
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