Peter Ngetich
7 September 2008
Nairobi — The Government will import fertiliser worth Sh11 billion for next year's season, Agriculture minister William Ruto said on Sunday.
Mr Ruto said Sh5.4 billion of the money will be given to the National Cereals and Produce Board to stabilise the price of the input.
Speaking over the weekend during a farmers' field day at Moi University's Chepkoilel Campus, Mr Ruto said the price of the input this year was exploitative to farmers and said that the State had started sourcing for the input.
"Those farmers who cultivated maize this year did so due to their patriotism to the country and I wish to thank them because fertiliser prices were beyond their reach," he said. Mr Ruto who is also the MP for Eldoret North said maize farmers will be paid their proceeds upon delivery.
He said farmers should not sell their maize to middlemen because the bench mark of Sh1,700 which had been set by the Government will allow them to break even.
"As a government we weighed all the considerations and settled on the Sh1,700 price which will make farmers to get a profit despite the difficulties which were experienced early in the year," Mr Ruto said.
Exploitative middlemen
The Agriculture minister said NCPB will open buying centres for small scale farmers in trading centres near their homes so as to put off exploitative middlemen.
"We want farmers to reap all the profits from their produce because they underwent problems early this year and the buying centres are to enable small-scale farmers to deliver the produce to NCPB," he said.
Mr Ruto said agriculture injects 50 per cent to the Gross Domestic Product and the State was keen on encouraging farmers in all the sub-sectors to grow.
He said the Agriculture Finance Corporation will be given an additional Sh3.5 billion to reach Sh6.8 billion at its disposal which will be lent to farmers next year.
Mr Ruto said that since the agriculture sector employees 80 per cent of Kenyans directly or indirectly, there was need to increase funding in the sector to spur economic growth.
He said the financial institution which serves mainly farmers had Sh3.8 billion this year to be borrowed, and which was still not adequate.
Mr Ruto said there was a lot of potential in dairy and horticulture farming and farmers should borrow from AFC and other financial institutions in order to uplift their living standards.
"There is a lot of market for milk powder and other dairy products and I am urging you to invest in the dairy sector because the Kenya Cooperative Creameries had been revived," he said.
Mr Ruto said the Government had put in place structures to ensure that the dairy sector does not collapse again and called on farmers to redouble their efforts in rearing the animals.
He said the services of extension officers in the country were wanting and the Act governing them will be repealed so that taxpayers can get value for their money.
"A lot of money is dedicated to the officers including salaries but nothing is done on the ground and my ministry is going to revamp the Act governing extension officers for delivery," he said.
Mr Ruto also said farmers training centres in the country will be revamped so that farmers can be taught modern farming techniques since the international world was watchful as to what it consumed.
Banks on notice
Meanwhile the minister has put banks on notice saying most of them had not complied with the banking provision that demands the allocation of 17 per cent of their loan portfolio to support agriculture activities.
Speaking during the official opening of this year's Kenya Maize Development Programme business fair in Chepkoilel campus at Moi University, Eldoret, the Minister asked banks to adopt the provision immediately so as to help boost food security in the country.
The event was also attended by US Ambassador, Michael Ranneberger.
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