Trade Cabinet Secretary Lee Kinyanjui has said the government is working on a new plan to benefit farmers with predictable income and create a line of credit.
While speaking during an interview on Spice FM on Thursday, Kinyanjui explained that the government is exploring ways to predict how much each farmer can earn to facilitate their access to loans.
According to the Cabinet Secretary, this initiative aims to provide farmers with a predictable income and make agriculture a more attractive venture.
“Farmers in Kenya are probably the only community that will invest money in a product without knowing its value,” said Kinyanjui.
He added, “A person running a hotel knows a cup of tea costs Ksh100. If I make 10 cups, I know exactly what to expect, but farmers planting maize do not have the same certainty.”
Expounding further, he stated, “A maize farmer does not know what they will get. It could be Ksh2,000, Ksh3,000, Ksh4,000, or even Ksh5,000.”
While outlining the government’s plan for farmers, the former Nakuru Governor explained that a cost structure is being developed to assess each farmer’s capacity and capability, enabling the prediction of their income.
The initiative is part of the government’s broader strategy to de-risk agriculture while promoting large-scale farming of crops such as sunflowers and canola.
“We want to de-risk agriculture, encourage contract farming, and establish clear structures so that processors are not left uncertain about whether they will be required to import tomorrow,” Kinyanjui asserted.
He further noted that the government is formulating a five-year plan that will outline production numbers, volumes, and the specific areas where different crops will be grown.
The new Trade CS insists that Kenya needs to reduce imports, especially food imports, including edible oils.
“Before we focus on anything else, we must address our food security, as a significant portion of our expenditure goes towards it. As we work towards servicing our debts, we need to resolve this issue,” he said.
Last year, President Ruto stated that a plan was in progress to eliminate edible oil imports within five years, highlighting that the country spends nearly a billion dollars annually on these imports.
He remarked, “We want to reduce that by 50 per cent in the next three years and, within five years, eliminate the importation of edible oil into Kenya. We believe that sunflower, canola, soya, and palm oil, once fully developed in Kenya, will provide the necessary supply to help us reduce and eventually eliminate imports.”
It remains unclear when the plan will commence, as the Cabinet Secretary did not disclose the implementation details. However, increasing oil production has been a recurring issue that President William Ruto has frequently addressed.
