The government has begun the implementation of a plan to purchase heavy machines, including tractors, high-speed propelled forage harvesters, centre pivots, and tipping lorries, according to a report by Weekly Review on Sunday, March 12.
The project which is worth Ksh31 billion is to be implemented within the following 18 months by the Agricultural Finance Corporation (AFC).
According to reports, the machines will be deployed to four government entities.
“The government institutions that will benefit from the deal include the Kenya Prison Service, National Youth Service, Kenya Agricultural and Livestock Research Organisation, and the Agricultural Development Corporation,” the report read in part.
In addition, the report details that the multibillion-shilling project will be funded by a concessional facility by the state of Belarus after a government-to-government agreement between the two countries.
“The second mention of the source of funding is to be found in a Cabinet paper headlined ‘The National Agricultural Mechanisation Program to be implemented by the Agricultural Finance Corporation,” added the report.
If the deal goes through, it will be the single largest import of tractors and agricultural equipment in Kenya in recent years.
“The government of Belarus has identified Aftrade DMCC as the company that will organise the whole process of identification of manufacturers, identification of equipment and the party that will lead negotiations,” a letter by the chief executive of AFC, George Kubai to the Office of the Attorney-General read in part.
However, reports of the project drew mixed reactions from Kenyans who questioned the capacity of the AFC to facilitate the project.
Some raised concerns stating that the deal would sideline the local engineering labour force hence killing knowledge transfer and development of the sector
“The sector has had hundreds of Agricultural and Bio-System engineers,” Ndolo stated on Twitter.
On the flip side, some welcomed the idea stating that it would enable farmers to access affordable services.
“The idea is AFC which is funded by govt brings in tractors and lends tilling service to farmers at a cheap price instead of the subsidised fertilisers,” David Osore, another Twitter user stated.
Belarus was rated as a sovereign in ‘selective default’ and ‘default’ by the global rating agency, S&P.
“It means that no country’s commercial bank or listed entity answerable to can have any financial dealings with any entity from the country,” the Weekly Review noted.
Moreover, on the first anniversary of the Russian attack on Ukraine, US Secretary of State Antony Blinken stated that Russia and President Aleksandr Lukashenko’s regime in Belarus would pay a severe economic price for the aggression against Ukraine.
He further warned of sweeping sanctions targetting export controls, and visa restrictions to cut off Russia’s and Belarus’s access to vital technological inputs.
This, according to the report, puts Kenya in a difficult diplomatic position because it seeks to transact with a country under trade sanctions from powerful Western countries including the United States.
“Since the war in Ukraine started, Belarus has been struggling to circumvent Western sanctions against exports of its agricultural equipment industry, and has been constantly fighting to limit exposure of its companies and subsidiaries to the penalties,” added the review.
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