A plan by the government to reduce the price of Maize flour suffered a setback after millers failed to reach an agreement with the Ministry of Agriculture.

It was reported Monday that the government had announced a maize flour subsidy programme that would have seen the price of a 2Kg packet of Unga retail at Sh100.

Leaked documents showed the subsidy would have been supported by an escrow account at the Central Bank of Kenya (CBK) which would have been used in compensating millers.

But it later emerged that millers had not reached a deal with the Ministry of Agriculture, with negotiations set to continue this week.

“The Cereal Millers Association (CMA) is consulting with the Ministry of Agriculture and other relevant stakeholders on how best to reduce maize flour prices. Negotiations are at an advanced stage, but no prices have been set,” said Cereal Millers Association CEO Paloma Fernandes.

“We will advise all our stakeholders on progress made towards achieving our goal of providing adequate, affordable, and nutritious maize flour.”