This archive report was first published on 20 May 2020.
On May 20, 2020, Kenya's government made a significant move to overhaul its approach to maize and fertilizer markets. The decision marks a shift away from direct market intervention, which has been a cornerstone of the country's agricultural policies for years.
Agriculture Cabinet Secretary Peter Munya explained that the government's new strategy focuses on creating an enabling environment for producers and traders. This involves reforms anchored on the warehouse receipt system, enhanced private sector participation, and revamped oversight committees.
Historically, the government had intervened in the maize market by purchasing produce at prices higher than the market rate, storing it at the National Cereals and Produce Board (NCPB), and releasing it when prices were below the market rate. This practice, Munya noted, was both undesirable and unsustainable.
As part of the new approach, the government has created the National Food Reserve within the National Cereals and Produce Board. The Reserve will operate on commercial principles to avoid market distortions and ensure transparency.
