Economy

NCPB begins to pay maize farmers amid tight vetting

MAIZE

Trucks loaded with bags of maize outside the National Cereals and Produce Board, Eldoret Depot on March 4, 2019. PHOTO | JARED NYATAYA | NMG

The National Cereals and Produce Board (NCPB) began paying farmers for their maize supplies on Wednesday, easing the growers' cash flow crisis ahead of the planting season.

The board paid Sh200 million on the first day amid stricter vetting of farmers and storage hitches.

At least 400 farmers had been paid as the Government made true its promise to shorten the payment period. Last year it took the government over a year to release payments for grain purchased from the 2017 season.

The Strategic Food Reserve (SFR) released Sh4 billion last week to enable the payment of farmers who have delivered their crop to NCPB.

NCPB communications manager Titus Maiyo said other farmers would be paid as soon as their names were cleared and sent to the SFR for crosschecking.

“So far we have paid 400 farmers Sh200 million on the deliveries that were made between January and February 17,” said Mr Maiyo.

Replenish stocks

The board is buying two million bags of maize this year to replenish stocks at the SFR after the government released nearly all stocks from the reservoir to millers in 2017 to curb the rising cost of flour that had hit Sh150 for a two-kilo packet.

As of Thursday, the board had only purchased 12 per cent (240,000) of the two million bags required. The process has been slowed by lack of bags in 30 depots that do not have storage silos.

The Ministry of Agriculture has requested Sh400 million from the Treasury for procuring gunny bags to normalise the situation.

SFR chairman Noah Wekesa said the government had agreed to release the funds to hasten the purchasing.

NCPB has run out of the storage bags, making it impossible for the board to take in more maize at depots that have no silos and require 2.5 million bags.

The affected regions include the former Western Province, South Rift and North Rift where NCPB runs several depots.

NCPB has capped the purchase of maize at 400 bags per farmer as it moves to tame traders and large-scale holders who have been accused of abusing the window at the expense of small-scale growers.