Kenyan government to purchase 1M bags of maize at reduced rate to stabilize strategic food reserves

KENYA – The Kenyan government has committed to purchasing one million bags of maize at KES 3,500 ($SD 24) per 90-kilogram bag, a move amounting to a total of KES3.5 billion ($SD 24.5 million).

This intervention, announced by Agriculture Cabinet Secretary Andrew Karanja, is designed to bolster Kenya’s national food reserve, currently operating at only 30% of its intended capacity.

The procurement will also support farmers by offering a stable outlet for their maize harvest in alignment with the Bottom-Up Economic Transformation Agenda (BETA), which aims to elevate profit margins and economic resilience among farmers.

The government’s strategic purchase price reflects a notable reduction from earlier rates, which stood at KES4,000 in early 2024 and KES4,500 in 2023.

This decrease, however,  has stirred mixed reactions among farmers who have long advocated for higher, consistent prices for their produce.

For many, the current rate falls short of expectations set amidst an anticipated bumper crop, which has seen prices for 90-kilogram bags fluctuating between KES2,200 and KES2,700 in some regions.

The Ministry of Agriculture attributes this price reduction to Kenya’s favorable long rains this year, which have substantially boosted crop yields.

According to government projections, the country will harvest 75.9 million 50-kilogram bags of maize, offering much-needed food security and increasing maize supply in the local market.

 “We are very excited about the expected bumper harvest because this will ensure the country has adequate food,” CS Karanja noted.

The Kenya Farmers Association (KFA) Director, Kipkorir Menjo, also underscored the need for greater governmental support to ensure that maize farming remains viable. He emphasized that additional measures, such as adequate drying facilities, would help farmers meet production costs and market standards.

Meanwhile, recent statistics from the Kenya National Bureau of Statistics (KNBS) indicate that the price of 2-kilogram fortified maize flour dropped by 1.7%, while sifted maize flour fell by 1.8% in October.

This reduction contributed to a drop in Kenya’s inflation rate from 3.6% in September to 2.7% in October, adding to the positive outlook on the impact of increased maize availability.

However, the recent cut in maize prices does not come without trade-offs. This decision follows recent hikes in the cost of maize seeds, as announced by the Kenya Seed Company, which attributed the price increase to production costs and fluctuating markets.

As of the new rates, a 2-kilogram packet of maize seed will cost KES 600 (US$4.20), up from KES 420, while a 10-kilogram pack will now retail at KES 3,000 (US$21), compared to its previous KES 2,000.

These developments have reignited farmer concerns about the profitability of maize farming, especially amidst the Kenyan government’s implementation of new levies on imported cereals like rice and wheat. These levies have raised importation costs by as much as KES20,000 for a truck of maize and KES50,000 for a truck of rice.

The Agricultural Food Authority (AFA) introduced these levies to stabilize the local cereal market; however, they have indirectly added to farmers’ production cost pressures.

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