Millers will secure maize in three tranches as the government moves to release three million bags to ease the shortage as a two-kilo packet of flour hit Sh121 from Sh85 in February.
National and Cereals Board (NCPB) said it would release the grain in tranches to enable the government to monitor flour prices in the market.
“We shall release the grain in three tranches of 40:40:30 per cent as we monitor the situation in the market, we don’t want to release the entire stocks at once,” said acting managing director Zakayo Magara.
The NCPB said grade one maize would, however, not be sold to the millers but instead it would be given to schools and other government institutions.
Millers will be issued the maize based on their installed capacity. Large-scale millers under the umbrella of Cereal Millers Association will get 1.1 million bags while their small-scale counterparts under United Millers Association will receive 674,000 bags with rest getting the balance.
The State is releasing maize at Sh2,300 for a bag against the current market price of Sh4,300.
Some millers had raised concern saying that the price of Sh2,300 is too low and that it would destabilise the market for a short time with the cost rebounding as soon as the available stocks are exhausted.
Animal feed manufacturers will get 300,000 bags of maize from the Strategic Food Reserve to ease the current shortage and lower the cost of feeds.
The Ministry of Agriculture agreed with the animal feed manufacturers recently that it would issue them the consignment of grade-four maize held at different depots in order to control the soaring prices of feeds that have hit a three-year high.
The price of a 70-kilogramme chick marsh that was selling at Sh3,300 as late as last month has shot up to Sh3,600 while growers marsh is now going for Sh3,100 from Sh2,800.
The standard dairy meal is now retailing for Sh4,500 up from Sh4,200.