MPs Alfred Keter, Joshua Kuttuny and Silas Tiren want President Uhuru Kenyatta to unilaterally fix a maize price of Sh3,200.
This is a complete non-starter and they should drop the idea.
The National Cereals and Produce Board has virtually gone bankrupt paying Sh3,200 for a 90kg bag when the market price is as low as Sh1,800. Government is effectively paying a subsidy of over Sh1,000 per bag to farmers through the NCPB.
This year there has been a bumper harvest of 46 million bags. If every farmer received a Sh1,000 subsidy, that would cost Sh46 billion - even if the NCPB managed to sell all the maize it buys, which it consistently fails to do.
Government should forget trying to set farm gate prices for maize. It's impossible. They must let the market take its course.
If the MPs and government want to assist the farmer, they should invest in improved agricultural extension services. And then reduce duties on inputs and fertiliser imports. That would help. Subsidies for a few lucky farmers and middlemen don't help.
Quote of the day: "The problem with socialism is that you eventually run out of other peoples' money."
Margaret Thatcher
She stood down as British Prime Minister on 28 November, 1990
