Murang’a County, Capwell Industries sign MoU to link maize farmers directly to market
The MoU aligns with broader industry efforts to localise sourcing and reduce exposure to supply disruptions.
KENYA – Murang’a County Government has signed a memorandum of understanding (MoU) with Capwell Industries Ltd aimed at improving market access for maize farmers and strengthening the county’s grain value chain.
The agreement seeks to formalise linkages between organised farmer groups in Murang’a and Capwell, one of Kenya’s major millers, with a focus on reducing post-harvest losses and improving income stability for producers.
Under the MoU, Murang’a maize farmers will gain structured access to Capwell’s procurement system, allowing them to supply grain under clearer quality, volume and delivery terms.
The county government will support aggregation, extension services and coordination at farmer level, while Capwell will provide a more predictable off-take market.
For farmers, the arrangement is expected to reduce reliance on informal brokers and spot-market sales that often expose them to price volatility. For the miller, the partnership supports supply chain planning and raw material consistency.
The partnership was officiated by Rajan Shah, CEO of Capwell Industries Ltd, and His Excellency Kang’ata Irungu, Governor of Murang’a County, in the presence of Kenya Association of Manufacturers (KAM) Chief Executive Tobias Alando, MML, BSc.
The collaboration falls under KAM’s Agriculture for Industry (A4I) initiative, which promotes structured partnerships between producers and manufacturers to improve competitiveness, traceability and efficiency across agri-industrial value chains.
KAM’s A4I initiative has supported similar models across grains, oilseeds and pulses, with the objective of integrating farmers into formal manufacturing supply chains.
Maize remains Kenya’s most important staple crop and a critical input for the milling sector. According to data from the Food and Agriculture Organization and Kenya’s Ministry of Agriculture, national maize production typically ranges between 3.5 and 4.0 million metric tons annually, depending on rainfall and input use.
However, post-harvest losses, driven by inadequate drying, storage, and logistics, are estimated at 20–30% in some producing regions, eroding farmer incomes and tightening supply for millers. County-level aggregation models, combined with assured markets, are increasingly viewed as a practical way to address these inefficiencies.
The partnership comes at a time when the county recently issued a 30-day ultimatum to maize hoarders, demanding that stocks be released to the market.
Speaking at the National Cereals and Produce Board (NCPB) depot in Sagana, Kirinyaga County, Cabinet Secretary for Agriculture and Livestock Development, Mutahi Kagwe warned that failure to comply would force the government to permit duty-free maize imports to stabilise the cost of maize flour.
He also announced that the government has set asideKES1.7 billion (US$13M) ready for payments to farmers selling their produce to the National Strategic Food Reserve.
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