In its
editorial of Friday 29th September, 2017 The Daily Nation under the
heading STATE SHOULD AVERT HUNGER raised certain pertinent issues relating to the
nation’s declining food production and lack
of sufficient strategic reserves of maize and its byproducts.
The
editorial concluded by suggesting ‘Going forward, long term solutions need to
be adopted to end the country’s perennial vulnerability to hunger’.
However, to
make any meaningful gains, it is imperative to understand why Kenya has found
itself in the present undesirable situation with all the available productive
agricultural land and the willingness by it’s farmers to produce both wheat and
maize crops,
In looking
back to where the cereals subsector started experiencing its decline, it is necessary
to refer to excerpts from Hansard (P1315 OF 10TH May, 2005) that may
shed some light on the matter.
‘’The KFA developed linkages with other major
players in the agricultural sector, notably the Agricultural Finance
Corporation (AFC), The Kenya cooperative Creameries(KCC),The National Cereals
and Produce Board (NCPC),The Kenya Seed Company Limited (KSC), Agro -Chemical
Companies and Animal Health Care Feed suppliers,et cetera as well as the Kenya
Government. Due to its strategic location, the Kenya Farmers Association (KFA)
has infrastructure facilities such as go downs. As we all know KFA has go downs
all the way from Coast Province to all other major towns in the Republic. It
also has branches and distribution outlets throughout the country. The
Government and other related institutions found KFA to be a good and convenient
vehicle to implement their programs and projects mainly related to agricultural
production and poverty alleviation initiatives.
‘’ the most notable linkage that evolved over
time were the appointment of KFA by the Government to be the principal agency
for handling storage, management and marketing of maize ,wheat grains as well
as fertilizers. This function has since ceased following market liberalization.
Another major function of the KFA was to
channel agricultural credit to cereal farmers; both wheat and maize through
state- owned Agricultural Finance Corporation (AFC).They will recover the same
credit when farmers delivered their harvest at the end of each season. This went
on until 1991/1992 when the agency function of KFA was transferred to the
National Cereals and Produce Board (NCPB) and, subsequently, followed by
liberalization of the cereals sub-sector.’’
Kenya did not introduce liberalization
of cereal sub sector by choice but as a result of conditions imposed by the IMF
in the 80S through its structural adjustment programs. This move was the first
step that disrupted a long and successful regulated cereals sub sector that
included orderly service delivery by the various key players having close linkages
with the K.F.A. Matters were further worsened in the year 1983 when KFA, a
sixty years old vibrant agricultural organization was liquidated and the
organization taken over by KGGCS Ltd. a society that only existed in name.
Feeding the nation is a primary
responsibility of the state and behoves decision makers to put in place
necessary policies in order to achieve food self-sufficiency to meet the rising
demand from a fast growing population.
Some of the matters that need
revisiting include, but not limited to, adequate budgetary provisions being
made by the Ministry of Agriculture for lending to cereal growers through the
Agricultural Finance Corporation as well as for purchase of cereals from
producers; appointment of KNTC as a major importer and distributor of
fertilizers through its countrywide branch network,; appointing the National
Cereals and Produce Board to be the principal agency
for handling storage, management and marketing of maize and wheat grains, including
gazettement of both crops as Scheduled Crops as was the case before
introduction of involuntary market liberalization. With a single marketing channel,
recovery of production loans will be
guaranteed and losses minimized to acceptable levels that can possibly be
absorbed by the state as a cost, subject to due diligence being undertaken to
establish the causes of any losses incurred by borrowers.
The only way forward is for radical
policy changes to be undertaken as a way of protecting the cereal sub sector
for sustainable levels of food production and elimination of grain imports
using the nations hard earned foreign exchange reserves. Reliance on commercial
importers for the nation’s food requirements is like abdicating from a social
responsibility that cannot be assigned to market forces driven only by profit
motivation.
Muzzafar Juma Khan.
Former General Manager of KGGCU Ltd
and Interim Chairman of KFA (2003)