• The maize will be purchased under the Strategic Grain Reserves usually stored for emergencies like famine. Date of purchase not given.
• President Kenyatta two month ago directed that the money be given to NCPB to facilitate maize purchase. Price set at Sh2,500, farmers want more.
The government will give the NCPB Sh3 billion to purchase maize before year's end.
Farmers will either sell to the NCPB or on the open market.
Middlemen have already flooded the region to buy maize at less than Sh2,000 per bag.
The highly touted Warehouse Receipting System failed to take off last month and will be delayed indefinitely until enabling legislation is in place.
Therefore, farmers will use the old NCPB system. They want the new system delayed.
President Uhuru Kenyatta had directed the NCPB to pay Sh2,500 per bag but farmers have complained that price is too low.
NCPB officials were non-committal on when the maize purchase will begin.
The maize and other grains will be purchased under the Strategic Grain Reserves usually stored for emergencies like famine.
Two months ago, President Kenyatta directed the money be given to NCPB to buy maize.
"It's important they put in place measures to start buying maize early. Farmers like all Kenyans have needs, such as preparing for schools reopening in January," director of the Kenya Farmers Association Kipkorir Menjo said.
The government had planned to roll out the Warehouse Receipting System last month but the plan has been delayed. Many farmers say they still don't understand it.
As no imports are allowed, most large-scale farmers are holding onto their produce, waiting for better prices.
"If there will be no imports, we expect the market to push up prices early next year to about Sh3,000 par bag. That's why we've opted to withhold our produce for some weeks," Joseph Kimei, a large-scale farmer in Trans Nzoia, said.
In two weeks prices have increased marginally to about Sh2,300.
Many small-scale farmers want to be paid immediately and don't want receipts they can use for collateral under the WRS.
Despite more than 12 NCPB stores having been approved for use by farmers under the WRS, no maize has been delivered to the WRS board.
The WRS Board led by chairperson Jane Ngige was in Eldoret, Kitale and Nakuru for meetings with farmers a week ago but no clear way forward was decided.
“So many issues are still in discussion, including legislation or rules that will guide the WRS. For example, farmers want to know the minimum amount of maize that can be kept under WRS and for how long, among other issues," Menjo said.
He said the government may have to implement WRS in phases because most farmers, especially small-scale growers, want cash on delivery.
They need to pay school fees and have other needs.
"Large scale farmers can store maize for some time but small farmers need money immediately and don't want to store maize" Menjo said.
Under WRS, farmers would store grains in certified stories and be issued with receipts. They can use those as collateral for loans and other financial assistance as they wait for prices to improve.
Ngige said the system will help deal with problems in the cereals sector, such as marketing and wastage. She said it will improve productivity and has worked well in South Africa and other countries.
“We want to see how to improve productivity through storage facilities, aggregation and mainstreaming markets as well as quality assurance,” she said.
NCPB managing director Joseph Kimote has said they have sufficient facilities to ensure success of the new system and purchase by NCPB.
At Sh3,500 per bag, the board will be able to buy about 1.2 million bags of maize. The government, however, only wants to pay Sh2,500.
(Edited by V. Graham)