The series of events leading up to the so called “maize scam” began in late 2008. At the time,the country was experiencing a severe maize shortage due to low yields and destruction of close to 3.5 million bags of maize during the post-election violence that also significantly reduced the area under production.
The country’s Strategic Grain Reserve was 1.6 million bags below the required 4 million bags, which placed the country in a precarious position famine or in the event of any slight shortage.
The maize shortage resulted in an increase in the prices of maize flour and related products,which shot up from KSh48 for a 2 kilogram packet of flour to as high as KSh130. Under pressure from public protests, in October 2008, the Government responded with the following measures:
1. Directing the NCPB to import approximately 3 million bags of maize to ease the shortage.
2. Directing the NCPB to sell maize only to millers at a subsidised price of KSh1,750 per 90kg bag (NCPB was at the time selling maize at KSh1,910 per bag).