Press Statement
FARMER CONCERNS REGARDING THE DECLARED DUTY-FREE MAIZE IMPORTATION WINDOW IN JULY
Agriculture is the engine of economic growth in Kenya and a valuable source of income for most Kenyans. About 75 percent of Kenyans derive all or part of their livelihoods from the sector.
The primary actor in agriculture is the farmer, yet, the state of Kenyan farmers, particularly maize farmers is dire, and our struggles continue to grow by the day. For some years now, it is clear that government policies are more focused on protecting the consumer and other actors in the food industry at the expense of the Kenyan farmer. It is also worth noting that the same farmer is a consumer.
In some cases, Government has shown a clear preference for foreign farmers over its own, a case in point being the maize subsidy program of not long ago when Government supported the procurement of maize from Mexico at Kshs. 4,000 while it was unwilling to offer anything above Kshs. 2,500 for locally produced maize.
With a dispirited farming community, it is difficult to see how the President will achieve 100% Food and Nutrition, one of his Big 4 Agenda items. Since it well understood that ‘Food Security is National Security’, Kenyan farmers wonder why the Government acts in ways that leave the country dependent on food importations. That is akin to outsourcing our national security. The past cases of export bans and unreliable supply of key food commodities by our neighbours should have made this clear by now.
However, the Government continues to act in total disregard of the above reality, leading to the high cost of production amidst falling producer prices both combining to drive the farming community into abject poverty. This is amidst the plummeting local prices, especially for maize. As other countries are busy incentivizing their farmers, the Kenyan government’s budgetary support to Agriculture keeps shrinking and interventions uncoordinated.
The latest shock to the farming environment has been the introduction of VAT on fuel and pesticides. This has made what was already a difficult farming environment worse. With this move, 95% of all farming expenses (from inputs to transport and grain handling services) have VAT on them, the only exception being seed, fertilizer, and wages. This has pushed the already high cost of production higher by between 12-15%. This is a bad policy move and should be immediately reversed.
In addition to the high taxation by the government, the farmers must pay additional levies in the form of Agriculture Produce Cess (APC) across multiple counties on the way to the market.
In recent days, the Government has already declared that it will be allowing for duty-free importation of maize from July. It is worth noting that the declared maize importation window coincides with the start of the harvest season for the South Rift which accounts 3-4 million bags annually.
This then begs the question: What will happen to the locally produced maize if we go ahead with the duty-free importation at a time when the South Rift region is harvesting and some of the regional sources (such as from Uganda)? Is this the best timing for the importation?
As members of Cereal Growers Association, we call upon the government through the Cabinet Secretary of Agriculture Hon. Mwangi Kiunjuri to show commitment to supporting local farmers. We also urge that a proper assessment is carried out to ascertain if the declared maize shortage is indeed real. To the best of our knowledge, majority of the farmers are still in possession of maize from their previous harvest.
In conclusion, we also urge the government to invest in incentivizing the local farmer and support the funding of an effective extension service that will result in the production of enough food to feed the country. In the meantime, the National Treasury should move with speed to reverse the move to impose VAT on pesticides and other inputs.
Stephanus Kruger
National Chairman
Cereal Growers Association