Business tycoon Naushad Merali is set to import maize worth Ksh7.3 billion before the duty-free window ends in July.
The Standard reports that five high-capacity cargo vessels, including one known as ‘Ionic Smyrni’ that’s arriving at the Grain Bulk Handlers terminal in Mombasa today, are operated by Holbud, the UK-based company associated with Merali.
The vessel carrying white maize sourced from Mexico began its journey on April 12, a day before the Kenya Revenue Authority published a notice allowing duty-free importation of maize.
Another vessel, ‘Interlink Priority’, also operated by Holbud, has arrived from Egypt carrying Ukrainian yellow maize and could be seen in the Indian Ocean waters close to the port on Monday, according to the Standard.
Yet another bulk carrier identified as ‘Guardianship’ and operated by Holbud left the port of Topolopambo, Mexico, on May 2 and is expected in Mombasa on June 30 – a journey of about 60 days. Available information shows that Holbud was incorporated in London in 1977, as an international grains trader with an annual turnover of nearly Ksh120 billion in 2016.
Holbud is a major but silent player in the Kenyan food industry considering it was previously selected as the supplier in a multi-billion-shilling tender for Government-subsidised fertiliser.
Agriculture Cabinet Secretary Willy Bett has told Parliament that Holbud will have imported slightly over two million bags of maize for both human consumption and animal feeds, mostly from Mexico and Ukraine. MPs had demanded an explanation about the prevailing food crisis and remedial measures taken by Mr Bett as food prices spiralled out of control.
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He was also required to explain how he had arrived at the subsidy programme and indicate how the benefits would be passed on to the consumers. “Each miller to sign a contract with the Government to ensure that the maize flour is retailed at the agreed prices,” Bett said in his report to the Committee on Agriculture in the National Assembly.
Maize meal prices fell sharply following the directive that also saw the State buy maize held by millers at Sh4,100 before selling it back to them at nearly half the price. He explained in the confidential response that his ministry had agreed to buy all the imported maize at Sh3,600. (Copyright: Standard)
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