Government Unveils New Plan to Support Farmers
Trade Cabinet Secretary Lee Kinyanjui has announced that the government is working on a new strategy aimed at ensuring farmers earn a steady and predictable income while also giving them better access to loans.
Speaking during an interview on Spice FM on Thursday, Kinyanjui explained that the government is developing a system that will help estimate how much each farmer can earn.
This, he noted, will allow financial institutions to provide credit to farmers with more confidence, making agriculture a more profitable and reliable source of income.
Farmers Need Predictable Earnings
Kinyanjui highlighted the challenges farmers face, stating that they are among the few businesspeople who invest money without knowing how much they will make in return.
“Farmers in Kenya are probably the only group that puts money into a product without a guaranteed price,” he said.
“For instance, if someone runs a hotel, they know exactly how much a cup of tea costs. If they sell 10 cups, they can easily calculate their expected earnings. However, a maize farmer has no certainty about the price they will receive after harvest.”
To illustrate this, he explained that a maize farmer might earn anywhere from Ksh2,000 to Ksh5,000, but the exact amount remains unpredictable.
The government’s new approach seeks to change this by creating a structured system where farmers can better estimate their potential earnings.
Government to De-Risk Agriculture
Kinyanjui revealed that the government is developing a cost structure that will assess the capacity of each farmer.
This will help in forecasting income and making agriculture a more stable and attractive investment. The initiative is part of a broader plan to reduce risks in farming while also promoting large-scale cultivation of key crops such as sunflower and canola.
“We want to de-risk agriculture and introduce contract farming. This will ensure that both farmers and processors have a clear structure to work with, removing uncertainty about future supply and demand,” he stated.
The Trade CS further explained that the government is drafting a five-year plan that will outline specific production targets, expected volumes, and designated farming areas for different crops.
Reducing Imports and Boosting Local Production
Kinyanjui emphasized that Kenya must focus on reducing its reliance on imported goods, especially food imports such as edible oils.
“Before we concentrate on anything else, we need to address food security. A large portion of our national budget is spent on food imports, and if we are serious about servicing our debts, we must find a solution to this,” he stressed.
Last year, President William Ruto announced that the government was working on a plan to eliminate the importation of edible oils within five years.
He noted that Kenya spends nearly a billion dollars annually on these imports, which places a heavy burden on the country’s economy.
“Our goal is to cut edible oil imports by 50% in the next three years, and within five years, we aim to stop importing completely,” Ruto said.
“We believe that with increased production of sunflower, canola, soya, and palm oil in Kenya, we will be able to meet local demand and gradually phase out imports.”
Implementation Details Still Unclear
Despite the ambitious plan, Kinyanjui did not specify when the initiative will begin or provide details on how it will be implemented.
However, the issue of increasing local oil production has been a key priority for President Ruto, who has repeatedly emphasized the need to boost agricultural productivity.
The new plan signals the government’s commitment to improving the agricultural sector by providing farmers with better financial stability, reducing dependency on imports, and ensuring food security for the country.
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