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Government is in a catch 22 situation as it grapples to replenish the country’s granaries and ensures market stability three weeks after ending the Sh6 billion maize subsidy programme.

The National Treasury terminated the six-month subsidy programme mid last month and expected a steady flow of Sh90 flour to end of October.

Following the end of the programme, consumers stare at high prices again similar to ones characterized early in the year, a situation likely to trigger national outcry.

By the close of the programme, maize imports to the tune of 1.1 million bags docked at Mombasa Port during the last week of October with flour expected to land in the shops in the second week of November.

There are fears that some millers could be hoarding the cheaper flour, hoping to cash in on the higher market price when the subsidy programme comes to a close.

But Bett said the government will continue monitoring the situation and even deploy auditors to millers to ascertain whether the flour they are producing tallies with maize they received under the programme.

With the announcement of the end of the programme, there has been panic buying in the last one week as consumers fear price increases in the midst of reduced purchasing power owing to dismal cash flow in the economy.

 “We have a duty to protect consumers against unattainable prices in the market. We are currently restocking the country granaries and hope that we will receive enough stocks to sustain the market,” said Bett.

As at end of last week, National Cereals and Produce Board (NCPB) management confirmed it had only managed to buy 140,000 bags of maize from farmers three weeks since the programme started. But the board assured that more maize is expected in the coming days.

Government is buying a bag of maize from farmers at Sh3,200 with millers expected to buy the same from NCPB at Sh3,400 per 90-kilogram bag. This, according to value chain players, will lead to a price increase of between Sh110 and Sh120 for a 2-kg packet of flour.