Many farmers are now smiling all the way to the bank due to improved farm gate prices across counties that grow different cash crops, thanks to a change in policy by the fifth administration under President William Ruto.
In 2022, there was a hue and cry for the government to subsidise the cost of unga since it was skyrocketing to an all-time high, and the high price would be one determinant in the manner in which people would vote in the general election.
As a result, the fourth administration instituted subsidies for commodities such as unga, fuel, etc, that resulted in a monthly bill of more than Sh16 billion. This was unsustainable in the long run.
The Kenya Kwanza manifesto envisaged a paradigm shift from subsidising consumption to production. A deliberate implementation of this policy through the Agriculture and Food Security Pillar of THE BETA PLAN has led to direct benefits to the Mama Mboga at the bottom of the economic pyramid.
Through the well-thought-out Guaranteed Minimum Return, Kenya’s economic growth has been buttressed by farmer prosperity through predictable incomes, thus reducing the vulnerability to market volatility, hence, a true realisation of our campaign slogan of ‘Pesa Mfukoni’.
For example, the price of macadamia increased from Sh24 to Sh100 per kilo, making Kenya the leading global producer, thanks to proper scheduling and a shift to production subsidies.
On coffee, the government through the Coffee Cherry Fund and other policy measures, has enabled farmers to earn an average of Sh130 per kilo, up from about Sh50, with payouts sent directly via M-Pesa. In fact, the acreage under coffee is on the increase, with the plant being grown in new areas such as Kisumu, Trans Nzoia and Uasin Gishu counties.
In dairy farming, the farm gate price for milk was raised from Sh37 to Sh50 per litre, boosting dairy farmers’ income significantly. In the sugar sector, farmer’s earnings rose from Sh4,500 to Sh5,300 per tonne, with some receiving bonuses for the first time due to improved support for sugar production. Indeed, in his recent development tour in
Western region, the President issued a bonus amounting to more than Sh150 million to farmers.
The fact that all the 16 sugar factories are now up and running, and that we are now able to meet the domestic sugar demand, thus reducing the Sh23 billon import bill is not only liberating our country, but also empowering her economically.
Recent media reports by miraa traders have left Kenyans wondering what is happening in the sector. This is because of the new GMR prices declared by the government. Existing cartels are opposed to the fresh vetting of all export licenses. The government is cracking down on them since they are exploiting farmers. The middlemen buy a kilogramme at Sh200 and sell it for as much as Sh4,500, thus robbing farmers of their hard-earned income.
Thanks to government reforms, miraa farmers have seen price increases across all the three grades as follows: grade One Sh700 to Sh1,300; grade Two Sh350 to Sh700, and the Alele grade Sh500 to Sh1,000.
However, the cartels are resisting these changes since the fresh vetting will enforce fair pricing and traceability or else, they risk losing their licences.
The biggest game changer has been the fertiliser subsidy programme, partly through donations from Russia and Algeria. Some political detractors have had a field day propagating misinformation on the same. The fact is that Russia donated 33,835 tonnes of raw materials, which were locally blended into more than two million bags of fertiliser for maize, tea and rice. The government subsidised each 50kg bag at Sh2,500, saving farmers Sh2 billion. Further, Algeria donated 6,000 tonnes of urea, producing 561,000 bags of top-dressing fertiliser blended with lime to improve soil health, saving farmers another Sh729 million. Therefore, the total saving to the country is nearly Sh3 billion (Sh2,729,000,000), monies that can now be put into good use in other sectors of the economy.
For example, the Primary Care Fund of Taifa Care recently got an allocation of Sh3 billion by Parliament, thus enabling provision of free medical treatment in Levels 1, 2 and 3 hospitals to many Kenyans.
The food import bill stands at a whopping Sh137 billion and the total imports have jumped from Sh1.3 trillion to Sh1.6 trillion between 2018 and 2022.
Kenya is now reversing the balance of trade by becoming Africa’s top exporter and producer, reflecting successful policy support and market access.
Moreover, the renewed focus on tanneries such as the one in Narok, has meant the leather sector is expanding, creating value addition opportunities and strengthening local production.
Kenya has the third-largest number of cattle in Africa and we have a great potential to produce quality leather products, thus, not having to import 25 million pairs of shoes annually for schoolchildren. Through this shift in policy, we have thus been able to secure our grain reserve to an all-time high, hence, attaining the food security that we promised Kenyans.
A vision matters, yet the deliberate implementation of the same counts all the more. Indeed, we are on the right track to prosperity.
ISAAC MWAURA is the Government of Kenya Spokesman
