Trucks queue as farmers deliver maize to the National Cereals and Produce Board depot in Eldoret. PHOTO | FILE
What you need to know:
Tension has been building in the Rift Valley over the debt and the fact that NCPB has stopped buying maize from farmers, exposing them to middlemen.
Middlemen are buying a 90kg bag of maize at Sh1,500 in the farms, taking advantage of those with pressing needs while NCPB was offering Sh2,300 per bag.
The Treasury will on Monday morning release Sh1 billion to clear dues owed to farmers by the National Cereals and Produce Board (NCPB) amid rising tensions in the Rift Valley over the debts.
Agriculture principal secretary Sicily Kariuki told the Business Daily on Sunday that a deal was reached on Friday following day- long talks at the Treasury that included members of the strategic grain reserve.
“I can confirm that the Treasury will be releasing Sh1billion tomorrow (Monday) to pay the farmers’ arrears,” said Ms Kariuki.
The board has been awaiting funds from the Treasury to pay farmers for the 452,518 bags it took on credit after exhausting the initial allocation of Sh2.7 billion.
Tension has been building in the Rift Valley over the debt and the fact that NCPB has stopped buying maize from farmers, exposing them to middlemen.
Middlemen are buying a 90kg bag of maize at Sh1,500 in the farms, taking advantage of those with pressing needs while NCPB was offering Sh2,300 per bag.
The cereals board has suspended maize buying, sparking protests from farmers in the North Rift. The farmers last week stormed the NCPB depot in Eldoret , demanding that the government buys their remaining stocks.
The protests were prompted by the board’s announcement that it was putting on hold purchase of additional maize.
Hundreds of farmers who have been queuing for weeks to deliver their produce at the depot on Wednesday complained that the suspension had inconvenienced them ahead of the planting season.
Baringo Senator Gideon Moi challenged Deputy President William Ruto to convene an urgent meeting of all elected leaders from the Rift Valley and agricultural stakeholders to discuss the future of the sector, especially maize farming.
The Agriculture ministry had requested for Sh1.9 billion from Treasury under the second supplementary budget that is yet to be tabled in Parliament for approval. Of the Sh1.9 billion, Sh700 million was set for debt settlement with the balance being used to buy more grain.
NCPB has so far paid for 1.4 million bags and taken 452,518 bags on credit.
Farmers opted for the credit facility because the board was offering higher prices compared to middlemen and traders.
Low maize prices have come as a relief to consumers who are currently enjoying reduced flour prices. A two kilogramme packet is selling at Sh80 down from Sh120 last August.
Political tension in the Rift Valley region has heightened after Kanu declared it would sponsor Mr Moi as its presidential flagbearer in 2017 while URP and The National Alliance (TNA) have merged to form the Jubilee Alliance Party (JAP) for the 2017 polls.
Both parties enjoy massive following in Rift Valley but whereas Mr Moi will be running for the presidency, Mr Ruto will be President Uhuru Kenyatta’s running mate.
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