Nairobi — Govt threatens to deregister companies that have failed to renew licences, writes Luke Mulunda.

The government, moving to stem supply of poor quality seeds, has cracked the whip on companies operating illegally.

The Kenya Plant Health Inspectorate Service (KEPHIS), the state-run agency in charge of controlling the quality of agricultural inputs and produce, has threatened to deregister eight firms that have been operating without licences for the last two years.

An official at KEPHIS said the companies - Agri-Seedco, Chemsian Farm Ltd, Greenland Agroproduce, Hortitec, Kabarak Ltd, Kenya Malting, Lowlands Agric & Tech Services and Vegpro - have not renewed their licences for at least two years. According to the law that governs seed matters, the Seeds and Plant Varieties Act, a company loses its operational status if it fails to renew its licence for two consecutive years.

"The companies have contravened the law," said the official, who declined to be named. "And the requirement is that they should be closed. We're not making up these rules."

An officer in charge of corporate planning at KEPHIS said the eight are deemed to have ceased operations and could be sued if found supplying seed without licences.

The tough stance is seen as a move to crack down on fake seed producers as the maize planting season gets underway in various parts of the country. Unscrupulous businessmen usually cash in on the high demand for seeds during the season, supplying unsuspecting farmers with uncertified seed. This reduces yields and contributes to food shortage.

"It's illegal to sell seed if you are not licensed," KEPHIS managing director Dr Chagema Kedera said on Friday in a paid-up press statement. "Sellers are therefore asked to ensure that they are licensed and sell seed belonging only to the companies that have appointed them."

But as he gave the warning, it emerged that fake seeds are already circulating in the market, especially in the western region, where planting is done in the first quarter of the year. On Thursday, for instance, police and KEPHIS personnel in Gucha District arrested several businesspeople who were secretly selling uncertified seed.

Agriculture Minister Kipruto arap Kirwa recently commissioned 21 new maize seed varieties and assured farmers that there would be enough to satisfy demand. Most of the seeds, developed by leading breeders in the country led by the Kenya Agricultural Research Institute, are of the hybrid variety. They are capable of withstanding the notorious maize streak virus and the parasitic striga weed that reduces yields by up to 30 per cent.

Maize meal is the country's staple food and a drop in production usually leads to famine. Last year, nearly 2.3 million people were faced with starvation and the government had to import 200,000 metric tonnes of maize to save the situation.

Purloined seeds, which look amazingly authentic, are sending fears in the farming fraternity, who only realise they have been tricked after a poor harvest. Dr Kedera appealed to farmers to seek advice from KEPHIS, genuine seed companies and extension officers on the suitability and authenticity of various crop varieties. "They should buy from recognised dealers and appointed dealers/stockists who must display their licences or the name of the seed company they are representing."

KEPHIS has 49 seed companies in its books, out of which 41 are dully registered as stipulated by the law to supply seed for various crops.

KEPHIS management did not respond to our inquiries on why it has taken this long for it to act on unlicensed firms - some of which have operated illegally for more than two years - and whether it has been inspecting the firm's seeds. Kedera was said to be in a meeting the whole day.

Hortitec and Kenya Malting have operated since 1982 and 1993, respectively, without being deregistered, while Lowlands Agric & Tech Services and Vegpro have not renewed their licences since 2000.

Most certified maize seed companies, including leading ones like Kenya Seed Company and Syngeta East Africa Limited, have already hit the ground running with their products. While Syngeta is holding awareness campaigns among farmers across the country, Kenya Seed, which boasts a storied brand, has slashed the prices of its varieties by about 5 per cent to woo customers. The company introduced four new maize seed varieties this season.

Kenya Seed marketing manager Joseph Omukamba said the Ministry of Agriculture is working together with KEPHIS to crack down on unscrupulous traders who sell fake seeds to farmers.

But even with the cost of maize seed coming down and more varieties being introduced, farmers will be forced to cough more to buy fertiliser, a key input in the cultivation of maize.

The rates were revised upwards last month after freight charges doubled to $70 per tonne. The National Cereals and Produce Board has moved in to import some 55,000 tonnes of fertiliser to stabilise prices in a market filled with private dealers.

Analysts initially feared that high input costs would discourage farmers but the government has promised to dole out loans amounting to Sh800 million through the Agricultural Finance Corporation to ensure maize production does not drop.