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Seed maize growers earn Sh1.8 billion for deliveries to State firm

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A Kenya Seed Company depot in Eldoret town. Maize seed subsidies have been cancelled a year after they were introduced. Photo/FILE

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Summary

  • Kenya Seed Company (KSC) has paid Sh1.8 billion to growers of seed maize for deliveries made before September 30, 2020.
  • The company told Parliament that it offered seed maize growers Sh68 per kilo meaning that farmers were paid Sh6,120 per 90kg bag.
  • Kenya Seed says it purchased 26 million kilos of seed maize for Sh1,768,000,000 from farmers contracted this year.

Kenya Seed Company (KSC) has paid Sh1.8 billion to growers of seed maize for deliveries made before September 30, 2020.

The company told Parliament that it offered seed maize growers Sh68 per kilo meaning that farmers were paid Sh6,120 per 90kg bag.

Kenya Seed says it purchased 26 million kilos of seed maize for Sh1,768,000,000 from farmers contracted this year.

The company says 329 growers were contracted to farm seed maize across the country in the current financial year, up from 307 last year.

“According to the contract, the first payment to be made to the farmer within 45 days from the end of the month following delivery of the seed crops to the company and out of this payments, advances will be recovered and the farmer be paid the balance,” Fred Oloibe, Kenya Seed acting managing director told the Senate committee on agriculture.

Mr Oloibe said the final payment is made on or before the 31st day of March. Out of the payment, the company will recover the cost of transport.

“For the financial year 2020/21, I wish to confirm that the deliveries of seed maize from farmers are in progress from September 2020. All seed that were received in the company before September 30, 2020 whose payment falls due on November 15, 2020 have been fully paid for as of today,” Mr Oloibe said.

KSC, he said, has been reviewing the price of seed maize in the last five years from Sh61 per kilo in 2016/17 to Sh68 in 2020/21

“The review for this year had a challenge because we lack a board. We have made proposals to the Cabinet Secretary for Agriculture to approve a new pricing of between Sh73 to Sh74 per kilo,” he said

Mr Oloibe said Kenya Seed has a sound financial position and has paid for all deliveries from farmers.

Kenya Seed controls 75 percent of seed maize market share with the rest taken up by smaller companies like Western Seed Company. Seed maize growers in Trans Nzoia County led by Senator Michael Mbito had petitioned the Senate to intervene in the re-negotiation of the current seed maize contract terms and conditions.

The farmers also wanted Kenya Seed compelled to pay farmers within seven days of delivering the seed maize.