This archive report was first published on 21 May 2020.
On May 21, 2020, Kenya's Agriculture Cabinet Secretary Peter Munya revealed the government's decision to step back from directly intervening in the maize and fertilizer markets.
According to Munya, the government will no longer purchase, distribute, sell, or set prices for maize, fertilizer, seeds, or any farm inputs.
This move aims to allow the government to focus on its core role of creating an enabling environment for producers and traders.
"To address challenges facing agricultural production and trade, Cabinet has directed reforms anchored on warehouse receipt system, enhanced private sector participation, revamped oversight committee on food balance sheet, institutional reforms to eliminate overlapping roles," Munya said.
Historically, the government had intervened in the maize market by purchasing produce at higher prices, storing it at the National Cereals and Produce Board (NCPB), and releasing it to the market when prices were lower.
Munya also announced the creation of the National Food Reserve within the National Cereals and Produce Board, which will be structured on commercial processes to avoid market distortions and opaqueness.
