Kisii on Tuesday commissioned a Sh158 million banana processing plant that was funded by the European Union and the devolved unit.
Defence Cabinet Secretary Eugene Wamalwa, Kisii Governor James Ongwae and European Union representative Stephen Wathome said the plant will contribute to steady incomes.
“It is also worth mentioning that the plant comes at an opportune time," Wamalwa said.
"It will provide an alternative market for producers and an avenue for enhanced value addition in making banana flour.”
Speaking during the commissioning of the plant which is located at the Agricultural Training Centre in Kisii, Wamalwa further added that the plant is expected to minimise the role of “middlemen”.
It will also improve the sales margins for producers and by extension, enhance the Kisii county revenue base through levies on producers and from the factory.
The Kisii County Banana Processing Plant has been funded at a cost of Sh151.8 million with EU contributing Sh110 million and Kisii the county Sh40.8 million.
Wamalwa, who is also the acting Devolution CS, said the funds have been utilised on the infrastructure development, equipment, and capacity building activities for various value chain actors.
"Specifically, the capacity building was to enhance skills of producers, county agriculture staff and other stakeholders on entrepreneurship, use of clean planting materials and business innovation," he said.
He welcomed the decision by the county government to lease the plant to a private operator.
“We advise the county government to take a keen interest in ensuring that the benefits accruing should be felt in the county,” Wamalwa said.
Governor Ongwae said the county will lease the facility to a private operator.
He said using this business model is thought to be the most ideal for efficient asset management, value for money, and better risk management.
Ongwae said the legal instruments to facilitate this partnership are in place.
“The Kisii County government will retain ownership of the processing equipment and machinery and exercise a supervisory role in the operations of the plant," he said.
"This will ensure that the objectives for which the plant was established are realised.”
He said the processing plant will have an installed capacity to process 80 metric tonnes of raw banana per day into banana flour with a banana wine processing line expected next.
The governor said the full potential of the banana value chain is constrained by low crop productivity, poor market organisation since its informal and unstructured.
It is also affected by significant post-harvest losses, high pest and disease incidence, and limited access to clean planting material.
“There is a multitude of intermediaries and middlemen between the farmers and final consumer increasing inefficiencies, lowering profit margins, and making the producer price uncompetitive,” Ongwae said.
Wathome said devolution has transformed the country.
“Devolution is working and transforming lives. This banana processing plant will put a smile on the faces of farmers. EU will continue to engage and work with devolved units.”
(Edited by Francis Wadegu)
