• In May, Agriculture CS Peter Munya said the government will no longer directly set maize prices, nor buy and distribute maize. Prices will be determined by market forces, he said.
• Maize drying charges at NCPB to be lowered by 50 per cent from Sh40 per unit to Sh20. NCPB storage charges will be reduced from Sh10 to Sh3 per bag per month.
Image: FILE
President Uhuru Kenyatta has directed the Ministry of Agriculture to ensure a 90-kilogramme bag of maize in the market sells for not less than Sh2,500.
Uhuru made the price announcement in a statement issued on Monday about food security. The state has previously said prices will be determined by market forces.
The President said the Covid-19 pandemic posed challenges to agriculture-based livelihoods and to food security. He said mitigation measures were undertaken by stakeholders and availability, access and affordability were attained.
“The recommended minimum maize selling price by farmers is to be Sh2, 500 per 90kg bag and the ministry is required to enforce these prices," the President said.
The price directive was issued after Agriculture Cabinet Secretary Peter Munya said in May the government will no longer be in the business of directly setting maize prices, buying or distributing maize. He said the prices would be determined by market forces.
Removal of the government's major role was part of the reforms in the maize subsector in which the Strategic Food Reserve was disbanded. The CS had said instead, the ministry will focus on creating an enabling environment for the private sector to make and execute commercial decisions.
Timothy Njagi, a senior research fellow at the Tegemeo Institute, said you cannot set a price flow lower than what the market is offering. Currently, market prices of maize range from Sh2,500 to Sh3,000 per 90kg bag.
“Ideally, if you want to set a price flow, the minimum should be what the market is offering. The reason for setting a flow is to protect farmers or cushion farmers when the prices being offered in the market are very low or exploitative. But when the market is operating well, you just allow the market to run,” he said.
Menjo Kipkorir, director of Kenya Farmers Association, said it's necessary to look at how to establish the minimum price of maize under the new regulations of the Warehouse Receipt System.
“This is because prices will be different for those who will be keeping their maize under the Warehouse Receipt System, depending on the time someone decides to sell their maize,” Menjo said.
Uhuru also directed the maize drying charges at the National Cereals and Produce Board be lowered by 50 per cent from the current Sh40 per unit to Sh20.
This, he said, will ensure farmers are able to dry and sell their maize with minimal post-harvest losses.
He added the national government will also make sure maize driers are available in all maize growing areas by the next season.
“These driers will be community-based and therefore will be managed by a group of farmers/cooperatives at the community level. This will ensure farmers are able to store or sell their maize at the appropriate moisture content and thus contribute to enhanced farmer incomes,” the President said.
He directed that unused NCPB stores countrywide be availed to farmers, farmers' groups and traders for storage at affordable costs.
The NCPB will therefore be required to lower their current storage charges from Sh10 per bag per month to Sh3 per bag per month, the President said.
Joseph Kimote, NCPB managing director, confirmed there are drying machines in 10 stores in Eldoret, Kitale, Moi’s Bridge, Bungoma, Kisumu and Nairobi and elsewhere.
(Edited by V. Graham)