• The bank said the fund will boost cereal and oil seed production by more than 1.5 million metric tonnes over the next two years.
• The increased production will also help bolster national food security and economic resilience.
Image: /MARTIN MWITA
Kenyans are set to benefit from a Sh7.5 billion loan from the African Development Bank to contain the runaway price of cooking oil.
AfDB in a statement on July 14 said the government will access the €63 million (Sh7,515,270,000) to increase cereal and oil seed production.
The bank said the fund will boost cereal and oil seed production by more than 1.5 million metric tonnes over the next two years.
The increased production will also help bolster national food security and economic resilience.
“It will enable the government to promptly provide affordable fertiliser and seeds to farmers ahead of the October-December 2022 short rains and into the 2022-23 long rain crop production season,” the bank said.
The funding is part of $1.5 billion (Sh177,315,000,000) set aside by the bank under the African Emergency Food Production Facility to avert a food crisis exacerbated by the war in Ukraine.
Established on May 20, the fund aims to provide agricultural seeds to 20 million African farmers to produce 38 million tonnes of food, primarily wheat, maize, rice and soybeans.
Beth Dunford, the bank’s vice president for agriculture, human and social development, said when implemented 650,000 farmers will benefit.
"In all, the facility will positively impact some 2.8 million people,” Dunford said.
The project will deliver certified seeds, fertilisers and agricultural extension services to farmers to boost productivity.
The bank will use an e-voucher system to ensure subsidies for inputs are “smart”.
“Another component of the project will provide trade finance guarantees and leverage the private sector to ensure sufficient volumes of fertiliser are available to farmers,” the bank added.
Agriculture CS Peter Munya said, “The government is looking into ways and means of addressing the cost of unga to bring it down so consumers can afford it.”
The number of Kenyans in need of food, especially in the northern part of the country, rose by 48 per cent between August 2021 and February 2022.
The general population has also been hit by inflation. A litre of cooking oil increased from Sh346 in February, Sh430 in March, Sh408 in April to Sh455 in June.
Last year, a litre was retailing at Sh303 and Sh206 in 2020.
Data from the Kenya Association of Manufacturers shows the price of cooking oil has more than doubled over the past two years.
For maize flour, the price of a 2kg packet has reached almost Sh250.
Edited by A.N