Win on fertiliser, but food prices still high
Workers offload bags of subsidised fertiliser from a train wagon at the National Cereals and Produce Board depot in Elburgon, Nakuru County on August 31, 2023.
The cost of basic commodities, including cereals, remains high despite President William Ruto introducing reforms in the agriculture sector to lower the cost of living, which was a key election campaign pledge.
Even so, the President has scored big with roll out of the subsidised fertiliser programme and the registration of nearly five million farmers, creating a database the government hopes will inform key decisions in future.
When President Ruto took office a year ago, a two-kilogram packet of maize flour was going for Sh250 while a 90kg bag of maize was going for Sh7,200 due to acute shortage of the staple as a result of drought.
The prices have dropped slightly in the last one year, with maize flour dropping to below Sh200 depending on the brand and maize prices plummeting to Sh4,800 per 90kg bag. The prices are expected to drop further as maize farmers begin to harvest with the country projecting a bumper yield following the distribution of subsidised fertiliser and favourable weather condition.
However, the cost of other commodities have skyrocketed. For example, a 2kg packet of sugar is selling at Sh440 up from Sh240.
President Ruto has lowered the cost of fertiliser to Sh2,500, down from 6,500 to motivate farmers to increase production and therefore help lower the cost of food.
But the high fuel prices resulting from the doubling of VAT on the products to 16 per cent remains a challenge to farmers.
Kenya National Farmers Federation Uasin Gishu county chapter chairperson Ruth Kemboi said the high prices of fuel and agrochemicals were still keeping productions costs high.
President Ruto’s administration has also introduced reforms to modernise the New Kenya Cooperative Creameries (KCC) factories and expand its market share as well as build capacity for dairy farmers.
The programme, headed by Deputy President Rigathi Gachagua, is aimed at empowering the milk processor to acquire new markets through the school feeding programmes.
“Our aim is to turn-around the company to profitability by doubling the processed milk to over three million litres for higher returns to the farmer,” said the DP.
The New KCC has processing capacity of 4.5 million litres of milk daily.
The Kenya Kwanza administration has also been keen on reforming the tea and coffee sectors. Mr Gachagua has previously stated that the government will implement the Tea Act 2020, among other changes, to improve returns for small-scale farmers.
The revival of the Coffee Board of Kenya and the Coffee Research Institute to support the coffee sub-sector reforms is also in the works. This is in addition to amalgamation of coffee cooperative societies that are not economically viable.
