The government is considering setting a Sh. 1 million fine or a jail term of five years for traders who sell unga above Sh. 100 over the next 30 days.
The government is expected to issue a gazette notice that will give legal backing for the stipulated fines.
This comes a day after it emerged that the State through the Ministry of Agriculture had penned a deal that would see the price of maize flour fall from the current Sh. 230 to a maximum of Sh. 100 for the 2kg packet.
Documents from the Ministry shows that the price reduction will be based on a subsidy, through which the government will compensate millers.
The 1-Kilogramme packet will retail at no more than Sh. 52 while the 500-gram packet will sell at no more than Sh. 30 per packet.
“It is agreed between the parties that the ministry shall deploy market surveillance teams to ensure that sifted maize flour is sold at the maximum recommended retail price stated.
“The market price of maize (per 90kg bag) as at the date of this contract is in the range of Sh. 5,800 and Sh. 6,000. Based on this market price, MOALFC will compensate the miller for each unit sold,” the statement said.
Through the plan, maize millers will be offered an unga subsidy that was not immediately declared, similar to the one given to oil marketers to keep fuel prices down.
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The government will open an ESCROW account under the watch of the Ministry of Agriculture and the Central Bank of Kenya.
“Oversight committee shall be formed with representatives from the Ministry of Agriculture, National Treasury, Cereal Millers Association and Grain Millers Association to oversee the effective working and success of the subsidy programme,” documents from the Ministry of Agriculture state.
