Sh1.5bn set aside to buy maize

The government plans to spend Sh1.5 billion to buying maize from farmers for the Strategic Grain Reserve.

Agriculture minister William Ruto said the government had released Sh700 million for the purchase of maize in Hola and Bura irrigation schemes, and Eastern and Coast provinces.

While inspecting the Eldoret showground at the weekend, the minister said an additional Sh800 million would be released this week to buy more maize in the North and South Rift.

“The programme will eventually spread to other parts of the country to ensure that farmers do not incur losses as a result of their harvest going to waste,” he added.

The minister said a major announcement would be made in Eldoret on Thursday about the loans that farmers owe the Agricultural Finance Company.

“We want to ensure that the loans are farmer-friendly so that they benefit them,” he said.

To open stores

The minister said the maize would be bought at the price set last time — Sh2,300 per 90-kilogramme bag.

The minister announced that the National Cereals and Produce Board had been directed to start receiving maize by Tuesday.

“We expect them to open stores on Monday or Tuesday and start receiving maize from farmers in the areas I have mentioned,” Mr Ruto added.

The Strategic Grain Reserve currently has 500,000 bags of maize but can hold up to 8 million bags.

Mr Ruto said farmers should not worry this planting season as there was enough seed and fertiliser.

Another consignment of fertiliser was on the way and would be available soon, he added.

The buying of maize by the board is likely to be welcomed by maize farmers, who realised a bumper harvest this season.

At the same time, the minister said the government would pay the balance of Sh70 million agreed with the Agricultural Society of Kenya (ASK) to compensate for the losses it incurred when its grounds hosted internally displaced persons.

Some of the grounds, including the one in Eldoret, have not been used for the past two years, leading to a loss of revenue amounting to Sh24 million.

Mr Justice Stewart Madzayo, the ASK chairman, said the organisation had received Sh5.6 million from the government and that the officials were optimistic that the balance would be paid.