Samwel Kumba
19 April 2008
Nairobi — Farmers hit hard by high prices of farm inputs can now sigh with relief as the Government has released Sh1.5 billion to the National Cereals and Produce Board to buy top dressing fertiliser and sell it to them at subsidised rates.
Agriculture minister William Ruto has also confirmed that the Government has cleared all debts owed to farmers who had supplied cereals to the NCPB.
"Last week we paid a total of Sh417 million and this week we have cleared the remaining Sh225 million. We will also pay farmers upon delivery of their cereals to avoid running into any debt," the minister said yesterday.
The minister was addressing members of the Agricultural Society of Kenya (ASK) during their annual general meeting at the Jamhuri Park showground.
Eliminate cartel
He said farmers were holding up to 10 million bags of cereals, which the NCPB was ready to buy.
Mr Ruto vowed to eliminate a cartel running the sale of fertiliser across the country who he blamed for the woes being experienced by farmers.
He said the reduction of the cost of farm inputs would encouraged more farmers to shift from subsistence to commercial farming, a prerequisite, according to him, for the country's development.
"We have secured enough funds to ensure that the NCPB is going to sell CAN (Calcium Ammonium Nitrate) fertiliser at Sh1,650 and still remain profitable," said the minister.
The minister's remarks came at a time when many countries in the world are faced with food shortage, with the situation in Kenya exacerbated by the recent post-election violence in which more than 30 per cent of farmers were displaced from their farms.
Mr Ruto assured Kenyans that top on the agenda of the coalition Government was to secure the food situation by salvaging the crops now in the farms, unharvested.
Other priorities, the minister said, include ensuring that normalcy returned across the country and that internal refugees were resettled.
He disclosed that the ministry was negotiating with financial institutions in collaboration with the Agricultural Finance Corporation (AFC) and Agricultural Development Corporation (ADC) to help finance agricultural activities at affordable rates.
The minister was pessimistic about the revival of the Kenya Farmers Association (KFA) due to accrued debts and legal tussles.
He, however, assured Kenyans that other institutions, like the NCPB, had the capacity to replace KFA's functions.
Mr Ruto, who was installed as the deputy patron of ASK (the patron is President Mwai Kibaki), said ASK would lead the reforms in the agricultural sector, which not only employed 80 per cent of the population, but also contributed 25 per cent of Kenya's gross domestic product, 60 per cent of export earnings and 27 per cent of GDP through linkages to other sectors.
Expressed concern
ASK chairman Stewart Madzayo was concerned that the internal refugees were camped at the various showgrounds across the country and that they had caused damage to ASK property.
He welcomed the minister's assurance that the ASK would be compensated.
The most affected areas were Eldoret and Kitale where the worst forms of violence were witnessed.
"We are aware that the displaced persons camping in the showgrounds have led to losses in form of electricity bills, destruction of property and less income due to loss of business to the tune of Sh70 million.
"However, I assure you that this amount has been included in our ministry's requirement forwarded to Treasury as part of the National Reconciliation and Emergency Recovery Strategy," said Mr Ruto.
Mr Madzayo said they would not postpone the Nakuru ASK show sheduled for July 7-12. The Eldoret show, which was slated for March, was cancelled.
However, Mr Madzayo said it would be held later in the year.
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