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    Israel set to showcase agricultural innovations in Embu

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Kenyan Business Feed
  • Home
  • News
    Kenyan SMEs to benefit from Sh11 billion support from UK’s CDC Group

    Kenyan SMEs to benefit from Sh11 billion support from UK’s CDC Group

    Kenyan PR agency bags international award

    Kenyan PR agency bags international award

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    Startimes land broadcast rights for Continental showpiece

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    Israel set to showcase agricultural innovations in Embu

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    Dandora dumpsite to produce electricity through a waste-to-energy plant model

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    Reprieve for Kenya as China says this about its loans

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    Emirates among first airlines to try IATAs’ digital platform for COVID-19

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    Tatu City partners with Konza to attract investors to Kenya

  • Markets
    Kenyan PR agency bags international award

    Kenyan PR agency bags international award

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    Startimes land broadcast rights for Continental showpiece

    Israel set to showcase agricultural innovations in Embu

    Israel set to showcase agricultural innovations in Embu

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    Moet & Chandon ink partnership with premier restaurant Oysters & More

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    Tatu City Partners with Konza to Attract Investors to Kenya

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    LG unveils premium monitors

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    Price of bread rises to Ksh55

  • Real Estate
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    Tatu City partners with Konza to attract investors to Kenya

    Tatu City Partners with Konza to Attract Investors to Kenya

    Tatu City Partners with Konza to Attract Investors to Kenya

    National Bank and Octagon ink 100 billion service partnership

    National Bank and Octagon ink 100 billion service partnership

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    Mizizi Africa Homes voted best low cost housing developer 2020

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    Cytonn Real Estate completes The Alma Phase 3; 120 units set for handover

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    Serviced Apartments Record Decline in Rental Yields

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    LG unveils premium monitors

    Pesalink appoints Gituku Kirika as CEO

    Pesalink appoints Gituku Kirika as CEO

    Samsung Galaxy S21 is now out,pre orders open in Kenya

    Samsung Galaxy S21 is now out,pre orders open in Kenya

    realme C12 and 7i now Available In Kenya

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  • KBF
    • All
    • Agribusiness
    • Banking
    • Insurance
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    Kenyan PR agency bags international award

    Kenyan PR agency bags international award

    Kenyan Scientists Discover New Coronavirus modification

    Kenyan Scientists Discover New Coronavirus modification

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    Emirates among first airlines to try IATAs’ digital platform for COVID-19

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      Employment Exit Strategy: The smart way to leave job for entrepreneurship.

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Home KBF Agribusiness

Bad news for farmers as government will no longer buy maize from them

by Neymar
May 21, 2020
in Agribusiness, Featured, KBF, Markets, News
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The Kenyan government will no longer be buying any produce from farmers as has been happening with maize. According to Agriculture CS Peter Munya, the government will no longer be storing food in National Cereals & Produce Board (NCPB) leaving the space to farmers and traders to lease it and under a new system, they could use the produce as collateral to get money from financial organizations.

“The government will not directly buy, sell maize or set prices of maize. The government will no longer purchase, distribute, sell or set prices of fertiliser, seeds or any farm inputs. Going forward the government will focus on its key role, that of creating an enabling environment for producers and traders to make and execute commercial decisions while ensuring that commercial interests, especially on imports do not disadvantage local producers and consumers,” says Munya. The CS says there was a lot of corruption that was going on when the government was buying through NCPB and this was one of the reasons for instituting reforms at the board.

NCPB has been accused in the past of buying maize from traders instead of farmers leading to a lot of criticism to the government by the farmers. Controversy would resurface when the same maize was being released to millers and traders later especially on price. “Historically, the Government, through the Strategic Food Reserve has intervened in the maize market, purchasing soon after the harvest, at often higher prices than the prevailing market, store with the NCPB and later release to the market when supplies are depleted, mostly at prices below the market price,” says Munya.

“The practice where maize is bought at above-market prices and released at lower than market prices undermines the basic functioning of the food market and sustains manipulation by cartels. This situation disadvantages producers and undercuts both the commercial and strategic food reserve system. The preferential agency arrangements of Strategic Food Reserve Trust Fund (SFRTF) with NCPB, coupled with blanket government subsidies has out-crowded private sector participation in the food warehousing system,” opines the CS.

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Munya says the maize sub-sector has dominated attention and resource allocation in the Ministry of Agriculture, influenced by short term interventions. Consequently he says this has drawn attention away from broader and more strategic action for improving food and nutrition security saying this situation is both undesirable and unsustainable.

The CS says the government has established a Warehouse Receipt System (WRS) an open trading platform that links buyers and sellers, and it is modelled along the stock exchange. He says the Warehouse Receipt System will remove the logistics burden and facilitates producers and traders to access agricultural credit against the deposit certificate. “The Warehouse Receipting Council has now been appointed including the Board and the Chief Executive Officer (CEO),” says Munya.

Starting from September this year, the Agriculture and Food Authority (AFA) in collaboration with the counties will undertake the registration of farmers, dealers, and the licensing of primary warehouses.  The Warehouse Receipt Council will be responsible for warehouses trading in the Commodity Exchange 


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]

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