Farmers to sell maize which is currently being harvested at KSh2,300 per 90kg bag to the government.
Will this help curb maize cartels?
The announcement was made Monday afternoon by the Strategic Food Reserve Fund (SFRF), which intends to buy 2.5 million bags from the 2018/19 harvest.
SRFR chairman Noah Wekesa said they will start buying the maize once the National Treasury avails funds.
“The purchase of the stock will start through our contracted agent, the National Cereals and Produce Board (NCPB), as soon as funds are availed by the National Treasury,” Dr Wekesa said during a press briefing at the Devolution ministry boardroom at Teleposta Towers, Nairobi.
Asked why the board lowered the price it offered last year, he said the country is not short of maize due to last year’s bumper harvest.
He also cited dynamics brought about by large imports during the duty free window ordered by the government mid last year.
“We are also trying to balance the interests of farmers against those of consumers. Raising the price to Sh3,200 as was the case last year would mean that the retail price would go up,” he said.
Dr Wekesa noted that the government has released Sh2.13 billion to pay farmers owed for produce delivered in 2017.
It however regretted that both the ministry and the Kenya Bureau of Standards (Kebs), which conducted investigations, have not furnished the board with the report of their findings.