North Rift farmers to gain as Sh1bn flour factory opens doors

A new maize flour brand is set to hit retail shelves early next month.

Jamii Milling Company has completed setting up a Sh1 billion factory on the outskirts of Eldoret. The mill is set to benefit farmers in North Rift. 

Mr Joshua Chepkwony, the entrepreneur behind the new factory, says apart from producing maize and wheat flour, the processor will also make animal feed to boost rearing of poultry and livestock in the region.

“We expect to employ 100 locals in permanent positions and a host of others on casual basis. We have a geographical advantage because this is the main white maize growing area and our land resources means we are not limited for expansion,’’ Mr Chepkwony said.

The processor will churn out close to 115,000 packets of 2kg maize flour daily.

The product targets Kenya and the larger east African market.

TRANSFORMING LIVES

Mr Chepkwony, who is also Jamii Telecoms Ltd chairman, says the plan to diversify into the food industry was informed by a growing need in the fast urbanising society and the desire to transform the lives of millions of farmers.

“We intend to source (raw materials) from farmers because from Moiben, stretching all the way to Kitale, is the highest density white maize growing area. We want to reduce their struggles and transform their lives conveniently,” he said. “Small-scale farmers will conveniently deliver maize here and diversify into other forms of agribusiness.’’

The miller sits on 12 acres with 100 acres space left for expansion.  The firm which is family-owned, sourced capital from local lenders to put up the factory.

An official launch has been scheduled for early next month with all facilities ready for the launch.

“We are coming into the business as late entrants and that gives us the advantage of advanced technology in all our process but the key emphasis for us is quality of the food we are going to process for Kenya and the larger East African region,” Chepkwony said.

“We want to live by every standard of food safety for human health. The way food is handled has resulted in the many lifestyle diseases we have today.

The entrepreneur believes there is need for a legislation to specify yellow maize for animal feed and white maize to be left for human consumption to minimse perennial shortages.

MARKET FORCES

The new maize meal is expected to hit shelves in Eldoret first followed by other retail shops in the country after the launch.

There are also plans to introduce an apprenticeship programme for the local community and link them to the African Milling School in Ruiru.

Every year, farmers in Kenya’s grain basket lack market for their grain after harvesting. The National Cereals and Produce Boards (NCPB) sometimes either delays to buy the maize or offer low prices.

Middlemen then take advantage of such situations to further compound the growers’ losses especially after they have recorded losses of up to 30 per cent of the annual maize output to poor post-harvest handling.

Maize shortage on the other hand result to rise in maize flour prices as millers cite long distance source markets for maize as an increase to their production costs.

The grain has big effect on inflation in Kenya where it is the staple food and accounts for a significant share of poor households’ budget.