TheNational Cereals and Produce Board has reportedly paid Sh7.1bn for 3.3m bags of maize from last season’s crop.
The Ministry of Agriculture has asked for money from the Treasury to clear farmers’ debts accruing from maize delivered at the National Cereals and Produce Board (NCPB) as well as to buy more grain from growers.
Chief administrative secretary Andrew Tuimur said the ministry had requested for Sh3.6 billion through a Supplementary Budget to pay the debt. The ministry had also asked for money to purchase more grain.
Dr Tuimur said the NCPB had so far paid farmers Sh7.1 billion for 3.3 million bags of maize from last season’s crop.
“We have asked the Treasury for Sh3.6 billion to pay farmers all their dues for the deliveries that they have made so far,” said the CAS.
He said the government was overwhelmed by high turnout of farmers who supplied maize to the board, making it the highest purchase that the NCPB has made from a single season. Last year government bought close to 1.8 million bags.
He said logistical challenges has made it hard for them to purchase more maize as the depots in Mois Bridge and Eldoret are filled up but plans are under way to create more room.
“We have purchased two million gunny bags to be used in relocation of maize from North Rift depots and move it to other parts of the country to create space to accommodate more grain,” he said.
The NCPB is buying maize on behalf of the government under the Strategic Food Reserve (SFR). The grain acts as a buffer stock and is used to supplement millers in times of shortages to tame high cost of flour.
The government released over 2.5 million bags of maize from the NCPB last year to millers after the price of flour rose to a record high of Sh153 for a two-kilo packet.
Millers say the country is currently enjoying relatively lower cost of flour because of the cross-border imports coming in from Uganda and Tanzania.
Imports from Uganda have been growing since October last year following a bumper crop in the neighbouring country amid tight supply of the grain in Kenya Data from EAGC indicate cross border trade between the two countries increased from 1,408 tonnes in the 4th quarter of 2016 to 47,563 in the same period last year.
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