REPORT BY THE TASKFORCE OF MAIZE INDUSTRY STAKEHOLDERS

REPORT BY THE TASKFORCE OFMAIZE INDUSTRY STAKEHOLDERS

Presented to:

H.E Uhuru Kenyatta, C.G.H.President of the Republic of Kenya and Commander-in-Chief of

Kenya Defence Forces

April 2019

REPUBLIC OF KENYA

MINISTRY OF AGRICULTURE, LIVESTOCK, FISHERIES AND IRRIGATION

Republic of Kenya

LETTER OF TRANSMITTAL

Date: 15th April 2019

H.E. Uhuru Kenyatta, C.G.H.President of the Republic of Kenya and Commander-in-Chiefof the Defence ForcesState HouseNAIROBI

Your Excellency,

RE: REPORT ON THE MAIZE INDUSTRY TASKFORCE

Following your direction, I constituted and appointed a task force of stakeholders in the Maize industry. The Task Force was appointed vide Gazette Notice No.11710 embodied in the Gazette Volume CXX No. 138 dated 9th November 2018 for a period of thirty (30) days. The tenure of the Task Force was further extended for a period of thirty (30) days vide Gazette Notice No. 343 embodied in the Gazette Volume CXXI No. 6 dated 14th January 2019. The tenure was subsequently extended for a further period expiring on 31st March 2019 vide Gazette Notice No. 1910 embodied in the Gazette Volume CXXI No. 27 dated 1st March 2019.

The Terms of Reference for the taskforce was to review the underperformance of maize industry with the focus on policy, regulation and institutional framework, declining maize production and productivity, high cost of production, high post harvest losses, unpredictable and unstructured markets, impacts of cheap imports and other relevant issues affecting the industry.

The taskforce undertook the assignment diligently and is pleased and honored to submit a report to you which has recommendations to address the aforementioned issues that need to be implemented in short, medium and long-term.

The task force is grateful and appreciates the opportunity to contribute towards the development of maize industry in Kenya.

…………………………….……………………………Hon. Mwangi Kiunjuri, EGH, MGH

Chair

…………………………….……………………………H.E Jackson Mandago

Co-Chair

…………………………….……………………………H.E Patrick Khaemba

Co-Chair

... / 2

Members of the Maize Industry Taskforce

…………………………….……………………………Hon. Ferdinand Wanyonyi

Member

…………………………….……………………………Dr. Noah Wekesa

Member

…………………………….……………………………Mrs. Ann Onyango

Member

…………………………….……………………………Dr. Johnson Irungu

Member

…………………………….……………………………Mr. Gerald Masila

Member

…………………………….……………………………Dr. Milton Ayieko

Member

…………………………….……………………………Mr. Stephanus P. Kruger

Member

…………………………….……………………………Mr. Nick Hutchinson

Member

…………………………….……………………………Mr. Albin Sang

Member

…………………………….……………………………Mr. Peter Kuguru

Member

…………………………….……………………………Ms. Felister Nyacuru

Member

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Co-Opted Taskforce Members

Name Institution1. Mary Nzomo Council of Governors2. Samwel Yego Council of Governors3. Bernard Arap Lagat Council of Governors4. Antony Kioko Cereal Growers Association

Secretariat Membership

Name Institution1. Jacinta Ngwiri MoALF&I2. John Kariuki MoALF&I3. Meltus Were MoALF&I4. Tim Njagi Tegemeo Institute5. Robert Kiteme Council of Governors6. Benjamin Kivuva KALRO7. Elizabeth Yegon MoALF&I8. Rizpha Mukonyo MoALF&I

Technical SupportThe task Force appreciates the immense technical contribution of the under listed experts:

Name Institution1. Dr. Odhiambo Orodi University of Nairobi (UON)2. Wekesa Khisa Agriculture and Food Authority (AFA)3. Nancy Cheruiyot Commodity Fund 4. Dr. Andrew Edewa Food and Agriculture Organization FAO - Kenya5. Hezron Momanyi Ministry of East Africa and Regional

Development6. Jane Njeru MOALF&I7. Janet K. Ngombalu East Africa Grain Council8. Dr. Zachary Kinyua KALRO - Naivasha9. Omar Haji Salat National Cereals and Produce Board

... / 4

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PreambleOver the years, the maize sub-sector has been facing various production, post-harvest management, marketing and value addition challenges. The government, through the Ministry of Agriculture, Livestock, Fisheries and Irrigation, in the recent past, has been addressing these challenges through various interventions, which have included the fertilizer subsidy and development of the Agricultural Sector Transformational Growth Strategy (ASTGS).

These will no doubt contribute to the Government’s Big 4 Agenda, which aims at achieving 100 per cent food and nutrition security for the Kenyan population. However, this goal cannot be achieved unless the maize sector is transformed, considering that maize is a key staple food. The sector has perennially had production deficits that are also uneconomical, with huge yield gaps compared to global averages.

In addressing these challenges, His Excellency the President, directed that a taskforce be formed to assist in reviewing the maize sub-sector and come up with recommendations for developing the sector, improving management and efficiency, and addressing the perennial problems facing it.

Terms of Reference

a. Review the policy, legal, regulatory and institutional framework of the maize industry and make appropriate recommendations;

b. Review the current and emerging challenges facing the maize industry and make appropriate recommendations

c. Review the maize industry value chain including research and import structures, enumerate and make appropriate guideline recommendations for addressing all the prevailing and

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anticipated issues of concern in the entire maize production and consumption value chains, for the short, medium-and long-term. Other short-term recommendations include fast-tracking the operationalisation of the AFA Act through regulations and operationalisation of the relevant institutions

d. Review and absolute assessment of Kenya’s cost of maize production, and a comparative analysis of the competitiveness of Kenyan maize in the East African Community (EAC) and the Common Markets for Eastern and Southern Africa (COMESA) and internationally, and make appropriate recommendations

e. A review of and recommendations for mechanisms of enhancing maize production and productivity to satiate local demand for and trade in maize, towards achieving food and nutrition security

f. A review of the challenges of high post-harvest loss of maize in Kenya and recommendations on the measures necessary to expedite a drastic reduction in the post-harvest loss

g. Analysis of the roles of different stakeholder segments, and recommendations on how they can collaborate amongst themselves, and with the National and County governments, to develop the maize sub-sector

h. A review of and recommendations for appropriate mechanisms to be used to determine maize purchase prices for the Strategic Food Reserve, taking due account of market forces and the Kenyan consumer

i. A review of and recommendations for appropriate mechanisms for streamlining the maize market structure

j. Develop and submit a comprehensive final report with recommendations to be implemented in the short-term, medium-term and long-term

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The taskforce was gazetted on 9th November 2018 and was to give its findings and recommendations in 30 days. However, its mandate was extended until 31st March 2019.

Methodology Used in Collection of Data

To undertake the assigned mandate, the Task Force sourced information by way of: Literature review, Interviews with key informants in the maize value chain, Presentations and memoranda submitted during public participation sessions and submissions from experts in the maize industry. The data and recommendations made by the Task Force were subjected to further public scrutiny and affirmation during the validation workshop held at KALRO Headquarters Nairobi on Friday 25th January 2019.

Maize Task Force members and Invited Experts during Data Consolidation Workshop held at KALRO Institute in Naivasha on 10th January 2019

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Cabinet Secretary Hon Mwangi Kiunjuri with Maize Industry Stakeholders after Maize Task Force Validation Workshop held at KALRO Headquarters Nairobi-Loresho on 25th January 2019

Cabinet Secretary Hon Mwangi Kiunjuri Addressing Media on National Maize industry Status before attending Maize Task Force Validation Workshop at KALRO Headquarters Nairobi-Loresho on 25th January 2019

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Acknowledgment

The taskforce would like to express its gratitude to all the individuals and institutions that gave their support towards accomplishment of this report.

We thank His Excellency, the President Uhuru Kenyatta, whose directive led to the formation of this taskforce. This is a clear demonstration of his commitment and desire to transform the maize industry, in cognizance of the important role the industry plays towards the achievement of 100% food and nutrition security, as envisaged in the Big Four Agenda; and its contribution to the economic pillar of Vision 2030.

The taskforce expresses its sincere gratitude to Hon. Mwangi Kiunjuri, the Cabinet Secretary, Ministry of Agriculture, Livestock, Fisheries and Irrigation for providing necessary financial and logistical support. The taskforce appreciates the immense contributions it received from H.E Jackson Mandago, the Governor Uasin Gishu County and H.E Patrick Khaemba, the Governor Trans Nzoia County. Lastly, and by no means the least, the unreserved commitment of all maize Task force members, the secretariat and technical experts is highly appreciated.

The support accorded by the National Assembly, County Governments, the Council of Governors, government institutions, including the Ministry of Interior and Coordination of National Government, KARLO, AFA, individuals and institutions that participated in giving their views for the development of this report is highly appreciated.

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Abbreviations and Acronyms

AFA Agriculture and Food AuthorityASTGS Agriculture Sector Transoformation Growth StrategyCGA Cereal Growers AssociationCMA Cereal Millers AssociationEAC East African CommunityEAGC Eastern Africa Grain CouncilKALRO Kenya Agriculture and Livestock Research OrganizationKeBS Kenya Bureau of StandardsKEPHIS Kenya Plants Health Inspectorate ServicesKIPPRA Kenya Institute for Public Policy Research and AnalysisKFA Kenya Farmers AssociationKRA Kenya Revenue AuthorityMLND Maize Lethal Necrotic DiseaseMOALF&I Ministry of Agriculture, Livestock, Fisheries and IrrigationNAAIAP National Accelerated Agriculture Input Access ProgrammeNBA National Biosafety AuthorityNCPB National Cereals and Produce BoardRATIN Regional Agricultural Trade Intelligence NetworkSFR Strategic Food Reserve STAK Seed Traders Association of KenyaUGMA United Grain Millers Association

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Executive SummaryMaize is the main staple food crop in Kenya and it is grown for consumption and as a cash crop. The average annual production of 40 million bags is not sufficient to meet the national estimated demand of 52 million bags required annually. Inadequate and underdeveloped market and distribution systems trigger high food price volatility, which rapidly translates into national food insecurity. Despite availability of diverse food sources in the country, Kenyans continue to rely heavily on maize for food.

The main challenges in the maize sub-sector include: slow legal, regulatory and institutional policy reforms; poor enforcement of regulations; underperforming institutions; poor implementation of the East African Community laws; inadequate data to inform decisions; low production and productivity; high post-harvest losses; unstructured, unpredictable, and unreliable markets; government price policies that distort markets; and underinvestment in the development of the maize sub-sector by government.

Considering the importance of maize, the challenges facing the sub- sector create high uncertainty that is not healthy for the country, for farmers and consumers; and the industry as a whole. It is against this background that His Excellency the President directed that a taskforce of maize industry stakeholders be appointed to make recommendations for the development of the maize industry in Kenya.

The taskforce was gazetted on November 9, 2018, with the following terms of reference: To review policy, legal, regulatory and institutional frameworks; review current and emerging challenges; review the cost of maize production; mechanisms of enhancing maize production and productivity; and the challenges of high post-harvest losses.

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The taskforce was also to propose a mechanism for determining maize purchase prices for the Strategic Food Reserve, and review mechanisms for streamlining the maize market structure.

Under legal, institutional and regulatory reforms, the taskforce recommended immediate restructuring of NCPB and SFR to make them autonomous; that the implementation of the Ernst &Young Report be fast-tracked; that the role of the Strategic Food Reserve Oversight Board be redefined; and that the enactment and implementation of the Warehouse Receipt System Bill be fast-tracked.

To increase supply-chain efficiency, NCPB needs to be refurbished and its drying and storage facilities modernised while regional and national laws; regulations and policies that are meant to protect farmers and the domestic market, to ensure that Kenyan maize and related products are globally competitive, should be properly implemented.

There is also need to strengthen collaboration and flow of information between the two levels of government and registration of aggregators, private warehouses, and formation of cooperatives. The re-introduction of guaranteed minimum return (GMR); roll out of contract farming; revival and revamping of institutions, especially KFA, AFC and ADC; and the expansion of crop insurance to cover all maize farmers and other crops, are other recommendations.

Establishment of cooling plants for storing green maize before marketing is also crucial, as is establishing an emergency fund at both levels of governments for disease and pest control. Short-term leasing of institutional arable land at market rates and establishment of agricultural liaison offices at counties is also recommended.

To address low production and productivity, the taskforce recommends: that subsidised fertilizer be provided to all farmers; that the Government’s

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mechanisation programme be implemented; the promotion of high-yielding seeds varieties; and the fast-tracking of formulation of fertilizer regulations and implementation of the guidelines.

The NCPB should procure fertilizer from manufacturers in line with established procedures, and this fertilizer should be packaged at source to avoid adulteration and contamination. Counties should register all farmers; there should be rollout of a national soil analysis and liming programme; and promotion of conservation agriculture. Accurate data on maize should be obtained through establishment of statistical units at national and county levels, and management and control of emerging pests and diseases. Extension should also be revamped.

The taskforce recommends that clear policy guidelines be made on agricultural land use, with a keen interest on making maize farming commercial. This will include consolidation of land and protection of large farms from subdivision. To do so, the government needs a clear policy framework to support large-scale maize farmers. Smallholder farmers need to be facilitated to grow maize for subsistence use and not as a cash crop and, suitable income generating crops be identified for them to grow, to generate income for reinvestment.

In the long-term, the taskforce recommends use of biotechnology in maize seed production to propagate seeds that are high-yielding and tolerant to pests and diseases. Towards this, authorities such as Biosafety Authority should fast-track the process of authorising biotech seed-use in the country.

In line with these recommendations, contract farming should be optimised; climate smart agriculture be expanded, area specific weather forecasting to enable farmers get appropriate information on the effects

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of climate change on their activities be provided and agriculture should receive 10% of budgetary allocation. The National land use policy should also be implemented.

The taskforce recommends that the Strategic Food Reserve Trust Fund be converted to a parastatal to enhance its autonomy and efficiency; while the Strategic Food Reserve stocks should be enhanced to six million bags. Establishment of at least one milling plant in each of the eight maize producing Counties through cooperatives and public-private-partnerships is proposed.

To manage the rising cost of production, the taskforce recommends that VAT on agro-chemicals and multiple taxation be removed. A harmonised taxation system across the EAC region and tax incentives to enhance adoption of conservation agriculture are also proposed. The promotion of economies of scale through cooperatives and farmer groups for collective action; investment and development of support infrastructure like roads, irrigation systems and markets are also recommended.

To address high post-harvest losses, the taskforce recommends that machineries and accessories, driers and accessories and all post-harvest management equipment and technologies, be zero-rated of VAT. There is need to facilitate farmers and cooperatives for the establishment of more driers and storage facilities; mass sensitisation of producers and industry players on post-harvest management; and creation of a fund to support cooperatives to build stores.

To streamline marketing, the taskforce recommended establishment of aggregation centres at ward level, and creation of small-and-medium enterprises for value addition. It proposed for the development of structured markets for grains that include operationalisation of the warehouse receipts system; standards and quality assurance through

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sample testing and certification; trade contracts, and a trade platform commodity exchange to facilitate buying, selling, clearing and settlement.

The purchase of annual SFR requirements should consider the price discovery process that takes into account cost of production; prevailing market prices (national and regional) and an appropriate percentage mark-up for farmer profits.

Other critical areas that need to be addressed include the full operationalisation of all institutions and facilitation to execute their mandates, and the full development and enforcement of the necessary regulations.

The Task Force recommends establishment of a Standing Multi-Sectoral Committee to oversee the implementation of the recommendations of this Task Force Report and handle other emerging issues for efficient and effective management of the maize sub-sector.

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Table of ContentsPreamble ................................................................................................................. i

Acknowledgment .................................................................................................... v

Abbreviations and Acronyms ............................................................................... vi

Executive Summary ............................................................................................... vii

Chapter 1: Introduction ......................................................................................... 11.1 Background information ............................................................................... 11.2 Production Challenges ................................................................................. 61.3 Conceptual Framework of Maize Industry Development .............................. 6

Chapter 2: Policy, Legal, Regulatory and Institutional Framework .................. 82.1 Agricultural policies and Vision 2030 Economic Blue Print ........................... 82.2 Legal and Institutional Framework ................................................................ 9

2.2.1 Introduction ......................................................................................... 92.2.2.1 The Crops Act No. 16 of 2013 ....................................................... 122.2.2.2 Agriculture and Food Authority Act No. 13 of 2013 ...................... 132.2.2.3 Kenya Agricultural and Livestock Research Act No. 17 of 2013 .. 142.2.2.4 Seeds and Plant Varieties Act Cap 326 of the Laws of Kenya and the 2016 Regulations .................................................................................. 152.2.2.5 The Kenya Plant Health Inspectorate Service Act, 2012 (KEPHIS Act 2012) ..................................................................................... 162.2.2.6 The Fertilisers and Animal Foodstuffs (FAF) Act Cap 345 and the Fertilisers and Animal Foodstuffs (Amendment) Act 2015 ................... 172.2.2.7 Agricultural Finance Corporation (AFC) Act Chapter 323 of The Laws of Kenya ................................................................................. 172.2.2.8 Agricultural Development Corporation (ADC) Act Chapter 444 of The Laws of Kenya ............................................................ 182.2.2.9 National Cereals and Produce Board Act Cap 388 ...................... 192.2.2.10 Strategic Food Reserve Trust Fund Regulations 2015 Under The Public Finance Management Act 2012 .................................... 222.2.2.11 Land Policy and Land Laws ........................................................ 222.2.2.12 Public Private Partnership Act ..................................................... 232.2.2.13 Consumer Protection Act No. 46 of 2012 .................................... 242.2.2.14 The Competition Act No. 12 of 2010 ........................................... 25

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2.2.2.15 Kenya Trade Remedies Act 2017 ............................................... 262.2.2.16 The Warehouse Receipt System Bill 2018 (WRS) ....................... 27

2.2.3 Other Institutional Frameworks ......................................................... 282.2.3.1 Farmer Organisations .................................................................... 282.2.3.2 Security issues to curb maize theft and ensure tough penalties .. 30

2.2.4 African Union and Regional Policies and Laws ............................... 302.2.4.1 The African Union: The Maputo Declaration on Agriculture and Food Security ............................................................................................. 312.2.4.2 East African Community (EAC) Laws - Common Market Protocol and the Customs Union Protocol ................................................. 32

2.2.5 Established Institutions under the Kenyan Law .............................. 35

Chapter 3: Addressing Maize Production Challenges ..................................... 373.1 Production Recommendations ..................................................................... 38

Chapter 4: Post Harvest Management, Marketing and Trade Challenges........ 534.1 Post-harvest losses ....................................................................................... 534.2 Post Harvest Management, Marketing and Trade Recommendations ......... 54

Chapter 5: Conclusion ........................................................................................... 675.1. Legal and policy Issues ............................................................................... 67

5.1.1 Policy Recommendations .................................................................. 675.1.2 Legal Recommendations .................................................................... 67

5.2. Production issues ........................................................................................ 695.3. Marketing stage ........................................................................................... 705.4. Cross cutting issues .................................................................................... 70

Annex 1: Policy & Legal Framework Recommendations......................................... 71

Annex 2: Maize Task Force Gazette Notices .......................................................... 99

Annex 3: Maize Cost of Production Determination Template ................................. 105

Task Force for Maize Industry Stakeholders1

Chapter 1: Introduction

1.1 Background information

Maize is a cereal crop with multiple uses, and serves as the most important staple food crop in Kenya. It is grown as a subsistence and commercial crop on about 2.2 million hectares of land, by both large and small-scale farmers. The current national average production is between 16 and 20 bags per hectare, but with appropriate interventions, production can be doubled.

Kenya, has a population of about 47 million people with an average per capita maize consumption of 82kg per person. The average annual maize production between 2013 and 2017 has been 40 million bags, while average annual food and other uses requirement is about 52 million bags. The current local production levels cannot, therefore, meet the national demand. Most regions are maize deficient, except the north and central rift; parts of Western, Nyanza and Central Rift. Currently, the National maize deficit stands at 8-10 million bags per year.

Significant food insecurity challenges have been experienced in Kenya since the year 2000. Cycles of severe national food insecurity persist to date, occasioned by population increase and numerous farming constraints. Maize scarcity triggers high food prices, especially of maize and maize products. These maize production constraints include climate change (frequent droughts and erratic rains), outbreaks of disease and pests (Maize Lethal Necrotic Disease, Fall Army Worms); high cost of inputs, post-harvest losses (8%-40%), unstructured market systems, acidic soils, unpredictable produce prices; poor agronomic practices, inadequate storage infrastructure and competition for land with other enterprises.


The population, maize production and consumption trends are as indicated in the figures below.

Figure 1.1: Kenyan Population and Maize Production Trends


Figure 1.2: Population and Production Trends, 1960-2017

Figure 1.3: Maize Production and Consumption Trends


Maize productivity according to farmers’ experience has been on the decline, leading to many landowners in the North Rift and Narok opting to lease out their land. The consumption of green maize has been on the increase, but statistics on this maize has not been established. Farmers need to be provided with incentives to produce more maize. Their observations have indicated that adoption of conservation agriculture can greatly boost maize production. Additionally, their access to affordable credit needs to be addressed.

A high number of improved maize varieties developed by KALRO, which are high-yielding and also have desirable attributes are available. These include coast hybrids, drought-tolerant varieties mainly for Eastern Kenya (dryland hybrids), mid-altitude maize, highland hybrids, striga-resistant maize (KESTP94 & GAF4), quality protein maize, maize lethal necrotic disease tolerant varieties and less prone aflatoxin varieties, and BT maize, which has been evaluated under confined environments.

Old varieties such as H614 may have been affected by climate change and have become more susceptible to pests and diseases, even though they are still being grown by farmers. A study by KALRO has shown that 8 kilos of grain are lost per acre per year, because of climate change and genetic breakdown caused by growing the same variety year in, year out. Therefore, old varieties, which have been grown for many years and are recording a decline in production, need replacement. Therefore, intensive promotion of the new and high-yielding varieties is required.

The soils where maize is grown are rapidly declining in fertility and pH levels. Limited application of organic manure and lime by farmers has also led to soil deterioration, making maize production unsustainable. The high cost of fertilizer and poor soil fertility management, has hampered


attempts to mitigate the declining soil fertility. After soil moisture stress, low soil fertility is the most important constraint limiting crop productivity; hence, food security in sub-Saharan Africa. A study done by NAAIAP in 2007 in maize producing areas, showed that 67 per cent of the soils were low in micronutrient content, especially zinc, 89 per cent were low in organic matter and 43 per cent had pH outside the optimum maize growing range of 5-7.

A policy intervention, therefore, is needed to address the declining soil fertility trend. This policy will have to incorporate seasonal soil testing, application of organic fertilizers, adoption of soil fertility recommendations and embracing of conservation agriculture technologies.

Moreover, implementation of a fertilizer subsidy programme would reduce fertilizer costs; hence, reduce cost of production for farmers. The subsidy programme involves procurement of 30 per cent to 40 per cent of the national fertilizer requirement of 650,000MT and selling at subsidised prices to registered farmers.

The subsidy programme has resulted to increased average maize yields from 15 bags to 22 bags per hectare (of the targeted farmers) and price stabilisation of fertilizer to about Ksh 3,000 from Ksh 6,500 in 2008.

Agricultural mechanisation is a major agricultural production input that encompasses application of mechanical technology and increased power to agriculture. It is a process of improving farm labour productivity through use of agricultural machinery, implements and tools. Currently, the use of motorised power stands at 30%; hand and animal draught power 50% and 20% respectively. The challenges facing maize mechanisation include diminishing land sizes and shifting land uses; inappropriate and high cost of machinery for the land sizes; low adoption of technologies, unregulated agricultural mechanisation


quality and standards; inadequate attention and funding of research and development for agricultural mechanisation. Purchases of new machinery declined from an annual average of 1,500 pieces 20 years ago to about 300 per year in the last 3 years. The country has about 10,000 tractor units and require an additional 11,000 units to meet its targeted 50% mechanisation threshold from the current 30%.

The sub-sector has had challenges in the whole value chain including:

1.2 Production Challenges

i. Declining maize production due to reducing maize profitability in key maize production zones, in the country. Farmers in traditional maize growing zones abandon the crop in favour of other seemingly profitable crops

ii. Sub-optimal use of farm inputs

1.3 Conceptual Framework of Maize Industry Development

Various production, post-harvest management, marketing and value addition interventions are required to be undertaken to revitalize the maize industry development. The interventions are diagrammatically represented in Figure 1.4.


Figure 1.4: Maize Industry Development


Chapter 2: Policy, Legal, Regulatory and Institutional Framework

2.1 Agricultural policies and Vision 2030 Economic Blue PrintThe Constitution of Kenya 2010 and the Vision 2030 envisage that adequate food of acceptable quality should be provided to every person.

The Vision 2030 Economic Blue Print aims at transforming Kenya into “a newly industrializing, middle income country providing a high quality of life to all its citizens in a clean and secure environment”. The Vision has three pillars: economic, political and social. The economic pillar aims at achieving an average Gross Domestic Product (GDP) growth rate of 10% per annum. Agriculture has been identified as a key sector in achieving this growth rate through transformation of smallholder agriculture from subsistence to an innovative, commercially-oriented and modern agricultural sector.

The MoALF&I has undertaken numerous reforms in the sector, which culminated in formulation of and enactment of The Crops Act No.16 of 2013; The Agriculture and Food Authority Act No. 13 of 2013 and the Kenya Agricultural and Livestock Research Act No. 17 of 2013.

Further, the review of the Agricultural Sector Development Strategy (ASDS) 2010-2020 and the Agricultural Policy 2011, have been undertaken together with the development of Kenya’s new Agricultural Sector Transformation and Growth Strategy (ASTGS) 2018-2030, which is anchored in the belief that food security would thrive in a vibrant commercial and modern agricultural sector that sustainably supports Kenya’s economic development and commitments to the “Big 4 Agenda”. The Malabo Declaration under the Comprehensive Africa Agriculture Development Program (CAADP) and the United Nations Sustainable Development Goals (SDGs) aim at ensuring food security and freedom from hunger at regional and global levels.


The Government is currently implementing the “Big 4 Agenda” whose four pillars are the food and nutritional security, universal health care, manufacturing and housing. The food and nutrition security agenda, aims at enhancing large-scale production in agriculture, which largely includes the maize sub-sector.

The policy and institutional reforms will strengthen the development of the maize industry in Kenya, and in the region; hence, the two levels of government and all stakeholders along the maize value chain should create an enabling environment for the realisation of agricultural development objectives envisaged in the ASTGS.

2.2 Legal and Institutional Framework

2.2.1 Introduction

Institutional, Institutional, policy and legal frameworks play a key role in advancing the national economic and social agenda on economic recovery and poverty reduction.

In the maize sub-sector, there are various Acts of Parliament, which provide for an elaborate institutional and administrative structure for agriculture in general, and the scheduled crops in particular. Some of the laws enacted following the agricultural reforms include: The Crops Act, The Agriculture and Food Authority Act and the Kenya Agricultural and Livestock Research Act, among other existing laws, which support the industry.

The development of the maize sub-sector is also dependent on an effective and efficient institutional framework to ensure a coordinated mechanism to facilitate multi-sectoral development of agriculture and the maize sub-sector nationally and within the region.


Agriculture is the main economic sector of the country and involves many stakeholders and institutions; who deliver the range of services required by the farming community. These stakeholders should be well-coordinated to avoid duplication of efforts and wastage of resources.

Despite the Government’s commitment and past interventions, the maize sub-sector has not been able to realise its full potential, due to lack of streamlined agricultural institutions that provide services to farmers such as extension, training, research and regulatory services, to ensure that they serve them efficiently and cost-effectively. Other challenges affecting the maize sub-sector include inadequate budgetary provisions; weak or lack of farmer organisations; lack of collateral and access to credit facilities; absence of a saving culture; ineffective marketing information; inadequate research-extension links; tariff and non-tariff barriers to regional and international trade, and weak or no public-private partnership arrangements.

Indeed, some institutions are still considered moribund and dysfunctional and need to be revived and restructured, for improved coordination and delivery of services to farmers, and stakeholders along the maize value chain. These include AFC, ADC and AFC, among others.

Insufficient budgetary allocation to the agricultural sector is a key constraint to the development of the maize sub-sector. In 2003 under the Maputo Declaration, African Heads of State committed to allocate10 per cent of their annual budgets to the agricultural sector. Kenya has not yet achieved this target. The cost of key inputs such as seeds, pesticides, fertilizer, and drugs is high for resource-poor farmers. Such high costs lead to high production costs and adulteration of inputs, which leads to low or poor yields.

The Government has put in place an institutional framework to guide policy and build capacity in the maize sub-sector. However, some


aspects of the policy need to be reviewed, to accommodate new challenges in the sub-sector. Acts of Parliament also need to be reviewed and consolidated where necessary, to re-align their mandates more effectively. Institutional reforms need to be undertaken to improve the capacity of established institutions to delivering efficient, effective and quality services to Kenyans.

There is also need to institute comprehensive policy, legal and regulatory reforms, to enable individual maize farmers to shift from subsistence to market-oriented production, and to adopt greater use of modern farming practices while increasing integration of agriculture with other sectors in the national economy.

Farmers have limited access to credit facilities. This is because farming is considered highly risky by the formal banking sector. Without credit, they are hard pressed to finance inputs and capital investment. A number of microfinance institutions are operating, but tend to increase the cost of credit, reach only a small proportion of smallholder farmers, and provide only short-term credit. The formal banking system is just beginning to develop credit facilities particularly suited to small-scale farming. Therefore, the existing financial institutions in the agricultural sector for example the Agricultural Finance Corporation, need to be revived and strengthened to enable them to support the farmers.

Further, private sector participation is of great importance. In the maize sub-sector, the private sector constitutes beneficiaries and resource mobilisers to transform economic operations. It is the vehicle for requisite investments to transform agriculture towards increased productivity, agribusiness, and infrastructure development. The private sector draws strength and legitimacy from the public–private partnerships. The agro-based private sector comprises both of profit-driven and not-for-profit (civil society) non-state actors. Therefore, the Government should


encourage great private sector participation in the maize sub-sector to inject the much needed capital.

2.2.2 Legal & Institutional Framework

2.2.2.1 The Crops Act No. 16 of 2013

The Crops Act provides the legal framework for the development of scheduled crops including maize.

The objective of the Act is to accelerate the growth and development of agriculture in general, and enhance productivity and incomes of farmers among others.

The Act creates the Commodities Fund, which consists of monies paid as license fees, commission, export or import agency fees and fees that may accrue to or vest in the Food and Agriculture Authority in the course of exercise of its functions under the Act.

ObservationsA preliminary observation is that the MoALF&I has not developed the regulations required to operationalise the Crops Act. The regulations will address most of the regulatory issues in the maize sub-sector including data management. For instance, lack of a database and information to support the development of the maize sub-sector, is a major constraint. This has contributed to lack of comprehensive planning by stakeholders in the maize sub-sector. Therefore, having regulations, which provide for information and records management in the sub-sector, will provide the necessary data to support development planning and provide investment opportunities.

Further, the general observation is that the functions and mandates prescribed in the Crops Act and AFA Act create jurisdictional conflicts


and overlaps in some instances. There is need to review and harmonise the two Acts, particularly on the functions/mandate of the institutions involved. For instance, the Commodities Fund, which manages the AFA’s money operates autonomously without AFA’s intervention as the experts from both institutions revealed.

Recommendations

a. The MoALF&I to expedite the development and rollout of the regulations to operationalise the Crops Act

b. The provisions of the Crops Act be fully operationalised and implemented

c. The Agriculture and Food Authority Board should be put in place in accordance with the law and funded to ensure that it fulfills its mandate

2.2.2.2 Agriculture and Food Authority Act No. 13 of 2013

The Act consolidates the laws on the regulation and promotion of agriculture generally; it establishes the Agriculture and Food Authority, AFA (the authority which is the regulator), and makes provision for the respective roles of the national and county governments in agriculture (excluding livestock), in line with the Fourth Schedule of the Constitution.

The Act also ensures effective participation of farmers in the governance of the agricultural sector. It also mandates the Cabinet Secretary to make rules to ensure that any agreements entered into between farmers and their organisations are respected.

Observation

The general observation, is that the functions and mandate prescribed in the Crops Act and AFA Act create jurisdictional conflicts and overlaps


in some instances. There is need to review and harmonise the two Acts, particularly on the functions/mandate of the institutions involved. For instance, the Commodities Fund which manages the AFA monies operate autonomously without AFA’s intervention as the experts from both institutions revealed.

Recommendations

a. The MoALF&I to expedite the development and roll out of the regulations in order to operationalize the AFA Act, particularly those relating to the maize sub-sector

b. The provisions of the AFA Act should be fully operationalised and implemented particularly in the maize sub-sector

c. The Food and Agriculture Authority Board should be put in place in accordance with law and funded to ensure that it fulfills its mandate

2.2.2.3 Kenya Agricultural and Livestock Research Act No. 17 of 2013

The KALRO Act provides for appropriate legal and institutional framework for agricultural research in Kenya, knowledge management and technology transfer, to provide solutions for sustainable development of agribusiness.

The Act has established the Kenya Agricultural and Livestock Research Organization (KALRO), whose objects and functions include to: promote, streamline, co-ordinate and regulate research in crops among others.

The Act has also established the Scientific and Technical Committee; Research Institutes and the Agricultural Research Fund with wide mandates under the Act.


ObservationThe KALRO Act has not been fully operationalized; hence, making the institution unable to fulfill its core mandate in the development of the required research and data, to ensure proper management of the crop sub-sector and particularly maize.

Recommendationsa. The MoALF&I to expedite the development and rollout of the

regulations to operationalise the KALRO Act, particularly those relating to the maize sub-sector

b. The provisions of the KALRO Act should be fully operationalised and implemented, particularly those relating to the maize sub-sector

2.2.2.4 Seeds and Plant Varieties Act Cap 326 of the Laws of Kenya and the 2016 Regulations

It confers power to regulate transactions in seeds; testing and certification of seeds, and control of importation of seeds, among other purposes. The Act empowers the Kenya Plant Health Inspectorate Service to establish one or more official seed testing stations, and issue testing certificates. The National Performance Trials Committee and the National Variety Release Committee, have been established to evaluate the performance trials and distinctness, uniformity and stability test and to consider the Distinctness Uniformity and Stability report; approve and release qualifying varieties among other functions.


2.2.2.5 The Kenya Plant Health Inspectorate Service Act, 2012 (KEPHIS Act 2012)

The Act establishes the Kenya Plant Health Inspectorate Service as a regulatory body for the protection of plants, seeds and plant varieties, and agricultural produce. It is mandated to regulate matters relating to plant protection; seeds and plant varieties; and to support the enforcement of food safety measures, among others.

Observations of the Seeds and Plants Varieties Act and KEPHIS ActThe Kenya Plant Health Inspectorate Service is an institution established to regulate and implement the provisions of the two Acts, through establishment of one or more official seed-testing stations. It also issues the testing certificates and ensures protection of plants, seeds, plant varieties and agricultural produce.

Recommendations on the Seeds and Plants Varieties Act and KEPHIS Act Farmers have complained that the seeds sold to them are of poor quality than the ones they have been receiving from the Kenya Seed Company, resulting in low yields.

There should be harmonisation of operations between the institutions established under the two Acts, to ensure that the seeds sold to farmers are of high quality. The Institutions should collaborate with the Kenya Seeds Company, to ensure that only high quality seeds are supplied to farmers.


2.2.2.6 The Fertilizers and Animal Foodstuffs (FAF) Act Cap 345 and the Fertilizers and Animal Foodstuffs (Amendment) Act 2015

The FAF Act regulates the importation, manufacture and sale of agricultural fertilizers, among other functions. The Amendment Act 2015 amends the FAF Act by establishing a Fertilizer and Animal Foodstuffs Board, whose main function is to regulate the fertilizers and animal foodstuff industry in Kenya, including the production, manufacture, packaging, importation and marketing of fertilizers and animal foodstuff; and to promote the manufacture of fertilizers and animal foodstuff.

ObservationThe Act contains dual functions relating to fertilizers and animal feeds.

RecommendationThe MOALF&I should:

a. Fully implement the Act to curb a lot of fertilizer importation, and encourage local manufacturing of fertilizers, which will reduce the costs of production and support the “Big Four Agenda” on food and nutritional security and manufacturing sectors;

b. The Fertilizer and Animal Foodstuffs Board to be the sole regulator of fertilizer manufacturing and importation;

c. The Act to be further amended to remove the animal foodstuff under the mandate of the Board, so as to ensure autonomy.

2.2.2.7 Agricultural Finance Corporation (AFC) Act Chapter 323 of The Laws of Kenya

The AFC Act establishes the Agricultural Finance Corporation, AFC (the Corporation), whose functions include: to assist in the development of


agriculture and agricultural industries by making loans to farmers, and co-operative societies, among others.

The Corporation may also make loan to a farmer and any cooperative society engaged in agriculture.

ObservationThe AFC Act has not been reviewed to align it with the current developments in the agricultural sector.

Recommendationsa. The MoALF&I to spearhead the review and/or repeal of the Act to

align it to the provisions of the Constitution and recommend the restructuring of the functions/mandate of the Corporation, to cure the overlaps with other established institutions;

b. The AFC to be strengthened and revamped to enable it to provide adequate credit financing to farmers, especially the small-scale farmers;

c. In the alternative, the Corporations’ mandate could be undertaken by other existing institutions

2.2.2.8 Agricultural Development Corporation (ADC) Act Chapter 444 of The Laws of Kenya

The ADC Act establishes the Agricultural Development Corporation, ADC (the Corporation), whose functions include to promote the production of Kenya’s essential agricultural inputs such as seeds including hybrid seed maize, and other seeds among others.

The Corporation has powers to provide credit and finance through loans, for agricultural undertakings among others.


It has been mandated to establish and maintain a reserve fund comprising of the surplus money it earns in its operations.

ObservationThe ADC Act has not been reviewed to adapt to the current developments in the agricultural sector.

Recommendations

a. The MoALF&I to spearhead the review and/or repeal of the Act, to align it to the provisions of the Constitution and recommend the restructuring of the functions or mandate of the corporation, to cure the overlaps with other established institutions

b. The ADC to be strengthened and revamped to enable it to provide adequate farm inputs such as hybrid maize to farmers, especially the small-scale farmers

c. In the alternative, the Corporations’ mandate could be undertaken by other existing institutions

2.2.2.9 National Cereals and Produce Board Act Cap 338

The National Cereals and Produce Board (NCPB) was principally created by the National Cereals and Produce Act (cap 338) to regulate agricultural commodity trade and grain management in Kenya. NCPB has for a long time continued to effectively play an important role in national food security, through procurement, management, distribution and sale of strategic food reserves’ (SFR) stocks. The board also procures and distributes subsidised fertilizer on behalf of the government.

ObservationsAlthough the NCPB procures, stores and maintains a strategic food reserve (SFR) on behalf of the government to be used for food security,


it has not been able to carry out its functions efficiently, due to the following challenges:

a. Inadequate funding and lack of a proper institutional framework with capacity to carry out its mandates. There is no regulatory framework on commercial grain trading, despite the NCPBs commercial role of grain trading;

b. Weak legal and regulatory framework of the grain sector. The NCPB Act needs to be revised;

c. Farmers have been put into a perpetual dependence on subsidies on inputs and outputs, without measurable progress. NCPB created a fertile ground for politicisation of maize production and marketing;

d. In times of glut, NCPB does not have the mechanism to find new markets. Its grain pricing often interferes with market dynamics. As a result, maize farmers suffer from price fixing. Government purchase prices are not conducive to commercial grain trading

e. NCPB offers services like drying, warehousing and grain cleaning to help farmers minimise on losses, but post-harvest losses, are still unacceptably high, particularly for a country that is seeking to ensure food security and fight poverty;

f. The lack of autonomy or independence; too much political interference and overreliance on the parent ministry has stifled NCPB’s innovation, impoverished producers and undermined entrepreneurship. Despite the fertilizer subsidies given out every year, farmers have remained poor, and the vicious cycle of poverty continues;

g. Delays in government approvals in the importation of fertilizers, the sale of SFR stocks, accessing credit facilities; payments to farmers, and payment of commissions, among others;


h. Bureaucracy in the procurement process and conflicting government policies;

i. Lack of business policy and orientation;

j. Negative publicity, corruption practices and cartel practices in the grain sector

Recommendationsa. To make NCPB a viable institution, it should be privatised and

restructured into a commercial enterprise. This will stop it from relying wholly on the government for funding and ensure effective allocation of resources, tasks, responsibilities, authorities and accountabilities. Creation of better institutional arrangements within NCPB, which foster greater economic expansion, less dependence on government and better prospects for growth is crucial;

b. Split NCPB into two to create the commercial wing and the government services wing. NCPB to be 80 per cent private under the commercial wing and the government to run 20 per cent of the board’s operations;

c. The restructured NCPB to be empowered to carry out its mandate effectively;

d. Review and repeal NCPB Act to enable it to fully venture into business. NCPB to own, manage, operate, develop and maintain grain handling and storage infrastructure, and to run a commodity exchange system and warehouse receipting system. This will help farmers to participate in determining prices and markets for their produce;

e. Implement recommendations for restructuring exercise by Ernest and Young;

f. Strengthen NCPB’S corporate governance.


2.2.2.10 Strategic Food Reserve Trust Fund Regulations 2015 Under The Public Finance Management Act 2012

The Regulations establish the Strategic Food Reserve Trust Fund, whose functions include provision of strategic food reserve in physical stock, cash equivalent and to stabilise food supply and prices in the country, among other functions.

ObservationThe Fund lacks autonomy to carry out its mandate effectively.

Recommendations

The MoALF&I and National Treasury to:

a. Enact a comprehensive SFR Act and comprehensive regulations to give effect to the proposed Act;

b. Enhance the SFR structures for efficiency and effectiveness, to establish an autonomous and independent entity (State corporation) to enhance its performance on matters food security and sustainability.

2.2.2.11 Land Policy and Land Laws

This is the legislative framework to comprehensively address the land sub-division issue in the maize sub-sector, and the complexities in land administration and management. The National Land Policy, guides the country towards sustainable and equitable use of land by addressing the critical issues of land administration, access and land use planning among others. It is appreciated that progress has been made to address land sub-division and land management through this policy, which provides an overarching framework for access to, and planning and administration of land in the country. However, the policy needs to be reviewed to reflect current land use challenges.


RecommendationThe MoALF&I should liaise with the Ministry of Lands and the National Land Commission, to address the issue of sub-division of agricultural land to uneconomical sizes and sensitise farmers on sustainable land management practices.

2.2.2.12 Public Private Partnership Act

The Act provides for the participation of the private sector in the financing, construction, development, operation, and maintenance of infrastructure or development projects of the Government, through concession or other contractual arrangements. It also provides for establishment of institutions to regulate, monitor and supervise the implementation of project agreements on infrastructure or development.

ObservationThe PPP structure under the National Treasury has not addressed use of the PPP model in the maize sub-sector.

RecommendationsThe MoALF&I in conjunction with the National Treasury should:

a. Establish institutional mechanisms to collaborate with the PPP committee of the National Treasury to promote PPP in the maize sub-sector management

b. Collaborate with NCPB, AFC, ADC and SFR and any other relevant institution in establishing the PPP model within the maize sector, for the benefit of actors in the value chain, and especially the farmers


2.2.2.13 Consumer Protection Act No. 46 of 2012

It provides for the protection of the consumer and prevention of unfair trade practices in consumer transactions. The Act is required to promote a fair, accessible, efficient and sustainable consumer market, among others.

Observationsa. Lack of proper structures within the maize market value chain

and lack of a formal exchange platform where farmers, traders, consumers, and millers can engage efficiently;

b. Contamination of maize (aflatoxin) due to poor handling and storage challenges;

c. Lack of proper collaboration within the institutions involved in the maize sub-sector.

Recommendations The MOALF&I should in collaboration with the relevant competent authorities to:

a. Formalise the maize sub-sector structure along the value chain, to ensure that consumers are protected through safe products and prices;

b. Enforce the provisions of the Act, to ensure that maize supplied (locally/regionally/internationally) is fit for human consumption and free from toxic substances such as aflatoxin;

c. Stabilise maize prices and maize flour prices to protect the consumers;

d. Spearhead the collaboration of various institutions involved in the maize sub-sector, to protect consumers from exploitation and market distortion.


2.2.2.14 The Competition Act No. 12 of 2010

This Act aims to promote and safeguard competition in the national economy; to protect consumers from unfair and misleading market conduct, and to establish the Competition Authority and Competition Tribunal with their respective powers and functions. It enhances the welfare of the people of Kenya by promoting and protecting effective competition in markets, and preventing unfair and misleading market conduct among others.

Observationsa. Cheap imports from the neighbouring countries distort the

domestic maize market, impacting negatively on the national economy;

b. The Kenya Trade Remedies Act 2017, is yet to be fully operationalised to address the challenges of market distortion arising from over-importation, dumping and counterfeit products through imports;

c. Poor communication and coordination between and among the EAC ministries responsible for agriculture and trade, to address the challenges caused by cheap imports and counterfeits.

Recommendations

The MoALF&I should:

a. Enforce fair trade protocols and policies, and promote fair market practices in accordance with the EAC and Kenyan laws;

b. Implement the Kenya’s Competition Act together with the EAC Competition legislation, to prevent market distortion (prices/supply);


c. Fast-track the full implementation of the Kenya Trade Remedies Act and its regulations, to protect the domestic maize market and other commodities;

d. Implement the Government policy of ‘buy-Kenya-build-Kenya’, to support the economy.

2.2.2.15 Kenya Trade Remedies Act 2017

The Act gives effect to the East African Community Customs Union provisions on trade remedies to prevent dumping, by empowering the affected partner states, to impose countervailing and safeguard measures.

It establishes the Kenya Trade Remedies Agency, whose functions include to investigate and evaluate allegations of dumping and subsidisation of imported products in Kenya, and to investigate and evaluate requests for application of safeguard measures on any product imported in the country, among other functions.

Observations

a. Over-importation and/or dumping of maize in Kenya from within EAC;

b. Lack of proper implementation of the EAC Common Market and Customs Union Protocols on prevention of over-importation and/or dumping of maize in Kenya;

c. Lack of implementation of the provisions of the Kenya Trade Remedies Act to counter the negative effects of maize importation in Kenya from EAC;

d. Lack of comprehensive regulations to fully operationalise the Kenya Trade Remedies Act;


e. Failure to operationalise the Kenya Trade Remedies Agency, under the Kenya Trade Remedies Act;

f. Lack of data on maize importation in Kenya from EAC and other regions.

Recommendations

The MoALF&I should:

a. In collaboration with Ministry of Trade and Parliament, fast-track development of comprehensive regulations to give effect to the Kenya Trade Remedies Act, and proposed amendments to it;

b. In collaboration with other competent authorities, investigate the cases of over-importation, market distortion and tariff mismatch in relation with imports from within EAC;

c. Operationalise the Kenya Trade Remedies Agency, so that it can effectively perform its functions under the Act;

d. Implement the institutional collaboration (Kenyan and EAC) to protect the maize sub-sector from unfair trade practices;

e. Keep proper and comprehensive data on the total amount of maize.

2.2.2.16 The Warehouse Receipt System Bill 2018 (WRS)

The Bill provides a legal framework for the development and regulation of a warehouse receipt system, for agricultural commodities and the establishment of the warehouse receipt system council, among other purposes. The functions of the council include: to facilitate the establishment, maintenance and development of a warehouse receipt system for agricultural commodities in Kenya, and oversee its functioning, to ensure the efficiency, effectiveness and integrity of the system, which will ensure structured trading in agricultural commodities.


ObservationThe WRS Bill is not yet enacted into law, so as to ensure implementation of its provisions to ensure structured trading in agricultural commodities, especially maize.

RecommendationMoALF&I, in conjunction with Parliament, to ensure the enactment of the WRS Bill into law, and its implementation. It should also develop comprehensive regulations to give effect to the WRS Act.

2.2.3 Other Institutional Frameworks

2.2.3.1 Farmer Organisations

Farmer organisations play a key role in the maize industry. They include cooperatives societies, farmer associations, unions and federations. They also include commodity associations, enterprise-based groups, and community-based organisations. These organisations are important economic entities established to enhance farmer representation, to lobby for and advocate on their behalf at various levels; and to make farmer needs and demands known to service providers.

In the maize sub-sector, the cooperative movement is not vibrant and there is need for government support for farmers in the maize growing areas to join cooperatives. In counties like Uasin Gishu, most farmers have joined cooperative societies, and there are 120 cooperative societies that are already established. These entities own land and stores. Farmers should be allowed and encouraged to supply maize through the cooperative societies.


Recommendations

The MoALF&I in liaison with the cooperative sub-sector should:

a. Review cooperative development policy and legal framework;

• All cooperatives are governed by the Cooperative Societies’ Act (2004). The Act is old and not consistent with the policy and Constitution of Kenya

• The Government has enacted the Sacco Regulatory Act and a Sacco Regulatory Authority, which is already in operation. Maize farmers should be sensitised on the importance of saccos to enhance their access to agricultural credit. The main focus of saccos is to offer affordable financial services; on a cost-effective basis, to cover a large number of cooperative members and provide an alternative system of securing credit

b. MoALF&I should enact regulations to incorporate the farmer’s co-operative movement in the maize sub-sector;

c. Encourage and sensitise farmers to join or form cooperatives to enjoy the benefits that accrue from the protection of the law;

d. There is need for farmer sensitisation and capacity building on effective management strategies, to enable these organisations to play a key role in empowering farmers and allow them to benefit from economies of scale;

e. Improve capacity for marketing agricultural inputs and produce. Cooperatives should be revitalised and their capacities strengthened to make them competitive. This will involve providing education and training, improving governance and management, and enforcing legal provisions. It will also mean adopting prudent standards, developing appropriate marketing strategies and operationalising the regulatory framework for saccos;


f. MoALF&I should fast-track the full implementation of the existing new laws outlined above, which support the strengthening of farmers unions and cooperatives.

2.2.3.2 Security issues to curb maize theft and ensure tough penalties

Security Security is critical for investment in agriculture. It ensures a society that is free from danger and fear. Measures to promote public security and to minimise conflict should be put in place. Some large-scale farmers are suffering.

There is rampant theft of maize and once taken to court, the thieves are set free or given very lenient sentences and penalties, and the vicious cycle continues.

Recommendations

a. Review and enact laws to address modern crime; and encourage and support the operations of community-based security systems

b. Review relevant laws to enhance penalties on maize and agricultural produce theft for deterrence

2.2.4 African Union and Regional Policies and Laws

Kenya is a signatory to several trade protocols and agreements including the East African Community, the Inter-Governmental Authority on Development (IGAD), the Common Market for Eastern and Southern Africa (COMESA), the World Trade Organization (WTO) and the East African Community-European Union Economic Partnership Agreements (EAC-EU EPA). Kenya must take advantage of these opportunities provided by the regional and international agreements, to attain a certain level of global competitiveness, while protecting the domestic market and


industry. Trade barriers increase uncertainties and transaction costs, and do not give farmers the impetus to plan production, processing and marketing for external markets. Kenya needs to effectively implement its laws to attain a fair trade balance, and protect its domestic market, especially the maize sub-sector.

2.2.4.1 The African Union: The Maputo Declaration on Agriculture and Food Security

The Maputo Declaration requires member states to allocate at least 10% of their national budgetary resources to agriculture. However, Kenya has not implemented the declaration due to budgetary constraints.

ObservationLow budgetary allocation to the ministry has contributed to the various challenges affecting the maize sub-sector.

Recommendations a. The Government should implement the Maputo Declaration to

ensure growth of agriculture and, especially the maize sub-sector;

b. The National Treasury should provide adequate resources to implement the declaration;

c. MoALF&I and the National Treasury to implement the PPP institutional framework to encourage private sector involvement, and the injection of private capital into the maize sub-sector, in order to supplement the budgetary allocations.


2.2.4.2 East African Community (EAC) Laws - Common Market Protocol and the Customs Union Protocol

The treaty for the establishment of the East African Community (The EAC Treaty), has provided for cooperation among the EAC States in trade liberation among others.

The EAC has four (4) pillars: The Common Market; the Customs Union; Monetary Union and the Political Federation.

The Common Market Protocol establishes a common market to enhance the free movement of goods between the partner states and to promote consumer protection. Its objectives include increasing agricultural production and productivity, and food and nutrition security among others, within the EAC.

On the other hand, the Customs Union (CU) Protocol promotes the liberalisation of intra-regional trade in goods, through elimination of all internal tariffs.

The CU Protocol also forbids dumping by partner states, which causes or threatens material injury to an established industry in any of the partner states.

The partner states have also agreed to co-operate in the detection and investigation of dumping; subsidies and sudden surge in imports, and in the imposition of agreed measures, to curb such practices. The partners states have been empowered to impose anti-dumping duties or countervailing duties, or safeguard measures on goods that threaten or distort competition within the community.

The CU Protocol also prohibits restriction and distortion of competition within the EAC.


Observationsa. There is no balance of trade between Kenya and other EAC

states, because Kenya’s maize exports are below the maize imports into Kenya from EAC region;

b. There is no institutional collaboration dealing with the maize sub-sector within the EAC partners states and also in Kenya; hence, the lack of proper implementation of the legal and regulatory frameworks relating to maize, so as to address the challenges;

c. Market distortion in Kenya due to over-importation of maize in Kenya from other EAC states;

d. Lack of data on the total amount of maize imports in Kenya;

e. Lack of proper implementation of the EAC Common Market; Protocol and Customs Union Protocol provisions, and also the Kenyan Trade Remedies Act, relating to the safeguard measures on dumping and over-importation;

f. Lack of implementation of the Kenyan Trade Remedies Act to prevent dumping, over-importation and market distortion;

g. Lack of implementation of both the EAC and Kenyan Competition Legislation, thereby, failing to provide protection to the Kenyan maize sector;

h. Challenges of poor quality maize importation in Kenya from EAC; hence, jeopardising the health safety and life of consumers;

i. Lack of fair competition in accordance with the Protocol, East African Community Competition policy and law and Kenyan law and policy, by ensuring that Kenyan maize is competitive in terms of quality.


Recommendations The MoALF&I in collaboration with the Ministry of Trade; The National Treasury; Kenya Revenue Authority and other competent institutions and authorities should:

a. Implement the tenets relating to the balance of trade, in order to ensure competitiveness of the maize sub-sector and growth of the Kenyan economy. Relevant government institutions created to promote trade, must be more proactive in this task;

b. Implement the legal and regulatory frameworks relating to maize, to ensure effective institutional collaboration in the maize sector within the EAC partner states and also in Kenya;

c. Stop market distortion in Kenya by ensuring that the country imports only the quantity and quality of maize it requires, to avoid over-importation of the produce from other EAC states;

d. Keep proper and comprehensive data on the total amount of maize imported in Kenya;

e. Implement and collaborate in the proper and comprehensive implementation of the EAC Common Market Protocol and Customs Union Protocol provisions, relating to the safeguard measures on dumping and over-importation;

f. Implement and collaborate in the proper and comprehensive implementation of the Kenyan Trade Remedies Act 2017, to prevent over-importation and market distortion;

g. Implement and collaborate in the proper and comprehensive implementation of both the EAC and Kenyan Competition Legislation, to protect the Kenyan maize sector;

h. Import and collaborate in the importation of only good quality maize in Kenya from EAC, to protect and promote health, safety and the life of Kenyan consumers;


i. Promote fair competition in accordance with the Protocol, East African Community Competition policy and law and Kenyan law and policy, by ensuring that Kenyan maize is competitive in terms of quality;

j. The MoALF&I and Parliament to fast-track implementation of the Kenyan Trade Remedies Act, together with the proposed amendments and comprehensive regulations, to give effect to the provisions of the Act.

2.2.5 Established Institutions under the Kenyan Law

Act/Legislation Institutions Established

1. The Crops Act Commodities Fund

2. Agriculture & Food Authority Act(AFA Act)

i. Agriculture and Food Authorityii. AFA Boardiii. Directorates

3. Kenya Agricultural Livestock and Research Act (KALR Act)

i. KALRO Boardii. KALRO Research Institutes &

other research institutes e.g.Coffee Research Institute; Tea Research Institute; Dairy Research Institute etc

iii. Agricultural Research Fund

4. Seeds & Plant Varieties Act Cap 326 & The Seeds & Plant Varieties (Variety Evaluation & Release) Regulations 2016

i. Kenya Plant Health Inspectorate Service

ii. National Performance Trials Committee

iii. National Variety Release Committee

5. Fertilizers and Animal Foodstuffs Act Cap 345 and Fertilizer and Animal Foodstuffs (Amendment) Act 2015

Fertilizer and Animal Foodstuffs Board


Further to the above findings and recommendations, the Taskforce has developed a detailed implementation framework to facilitate effective implementation of the interventions as provided in Annex 1: Legal Framework Implementation.

Act/Legislation Institutions Established

6. Kenya Plant Health Inspectorate Service Act 2012

Kenya Plant Health Inspectorate Service

7. Kenya Trade Remedies Act 2017 Kenya Trade Remedies Agency

8. National Cereals and ProduceBoard Act

National Cereals and Produce Board

9. Strategic Food Reserve TrustFund Regulations 2015

Strategic Food Reserve Trust Fund

10. Agricultural Finance CorporationAct

Agricultural Finance Corporation

11. Agricultural DevelopmentCorporation Act

Agricultural Development Corporation

12. Public Private Partnership Act Public Private Partnership Committee

13. Consumer Protection Act The Kenya Consumers Protection Advisory Committee

14. Competition Act i. Competition Authorityii. Competition Tribunal


Chapter 3: Addressing Maize Production Challenges

Crop production is a process that starts with land preparation and managing the crop while in the field, up to harvesting. This entails a number of farm activities that range from land preparation, planting, crop husbandry to removal of the mature crop from the field.

The scope and manner in which these operations are undertaken, is influenced by the size of the farm and level of technology being applied. A number of challenges have been identified in maize production, and recommendations on how to overcome them is as shown in Table 3.1 below.

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

38Issu

esR

ecom

men

datio

ns

Short Term

Medium Term

Long Term

ResponsibleInstitution (Who)

1.

Low

Use

of a

ppro

pria

te F

ertil

izer

Expa

nd fe

rtiliz

er

subs

idy

to b

oth

smal

l and

la

rge

scal

e fa

rmer

s an

d in

clud

e lim

e in

the

subs

idy

prog

ram

me

•In

crea

se b

udge

tary

allo

catio

n by

50%

and

sub

sidi

ze

ferti

lizer

acr

oss

the

boar

d/at

the

agro

- dea

ler l

evel

. C

onsi

der B

ulk

proc

urem

ent o

f fer

tiliz

er (B

PF) a

nd

setti

ng o

f the

pric

es a

t var

ious

par

ts o

f the

cou

ntry

ju

st li

ke fu

el is

bei

ng d

one

•D

istri

butio

n of

ferti

lizer

s sh

ould

be

on ti

me

and

the

info

rmat

ion

of w

hen

it is

ava

ilabl

e an

d its

exp

ecte

d pr

ice

shou

ld b

e av

aila

ble

•Ro

ll ou

t of n

atio

nal s

oil a

naly

sis

and

limin

g pr

ogra

m

•So

il an

alys

is re

ports

sho

uld

also

gui

de p

lace

s to

use

of

ferti

lizer

ble

nds

•Fa

st tr

ack

the

form

ulat

ion

of fe

rtiliz

er re

gula

tions

and

im

plem

enta

tion

of th

e gu

idel

ines

S

MO

ALF&

I, fe

rtiliz

er

com

mitt

ee,

Cou

ntie

s, A

gro-

de

aler

s

3.1

Pro

duct

ion

Rec

omm

enda

tion

s

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

39Issu

esR

ecom

men

datio

ns

Short Term

Medium Term

Long Term


Rede

sign

the

ferti

lizer

sub

sidy

pr

ogra

m to

util

ize

the

exis

ting

priv

ate

agro

-dea

lers

ne

twor

ks fo

r co

st

effic

ienc

y an

d su

stai

nabi

lity

•Im

pact

ass

essm

ent o

f the

sub

sidy

Pro

gram

me

•In

trodu

ctio

n of

sm

art s

ubsi

dies

and

e-v

ouch

er

•Tr

ack

ferti

lizer

use

by

bene

ficia

ries

•Th

e ne

w p

rogr

am s

houl

d ta

ke a

dvan

tage

of e

xten

sive

ag

ro d

eale

rs n

etw

ork

(priv

ate

sect

or)

•N

eed

to h

ave

exit

stra

tegy

to m

ake

it su

stai

nabl

e

•Pr

ovid

e in

cent

ives

for p

rivat

e se

ctor

led

ferti

lizer

m

anuf

actu

ring

and

blen

ding

•Ta

x an

d re

gula

tion

S

KALR

O, F

ertil

izer

de

aler

s, C

ount

ies,

M

OAL

F&I,

Tege

meo

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

40Issu

esR

ecom

men

datio

ns

Short Term

Medium Term

Long Term


Prov

isio

n an

d pr

omot

ion

of

spec

ific

soil

and

crop

spe

cific

fe

rtiliz

ers

• C

ondu

ct s

oil t

estin

g an

d m

appi

ng a

cros

s co

untie

s

• C

arry

out

on

farm

and

on

stat

ion

dem

onst

ratio

ns

• Re

stru

ctur

e N

CPB

/SFR

to e

nsur

e fa

rmer

s an

d co

unty

gov

ernm

ents

are

par

t of t

he d

ecis

ion

mak

iing

proc

ess

• Ev

ery

indi

vidu

al c

ount

y to

regi

ster

thei

r far

mer

s an

d pr

ovid

e th

e da

ta

• N

CPB

sho

uld

do d

irect

pro

cure

men

t fro

m

man

ufac

ture

r and

the

ferti

lizer

pac

kage

d at

sou

rce,

an

d its

qua

lity

stan

dard

s ve

rified

at s

ourc

e an

d at

en

try. L

et th

e su

bsid

ized

ferti

lizer

pric

es b

e kn

own

in

the

coun

try

• Es

tabl

ishm

ent o

f a ro

bust

ferti

lizer

Dis

tribu

tion

chan

nel/s

yste

m

S

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

41Issu

esR

ecom

men

datio

ns

Short Term

Medium Term

Long Term


2.C

rop

loss

es d

ue p

ests

and

dis

ease

sEf

fect

ive

Cro

p Pe

st

and

Dis

ease

Con

trol

•En

hanc

e su

rvei

llanc

e an

d m

anag

emen

t of p

ests

&

dise

ases

•En

hanc

e em

erge

ncy

resp

onse

to p

ests

and

dis

ease

ou

tbre

aks

•Pr

omot

e cl

imat

e sm

art a

gric

ultu

re p

ract

ices

e.g

. in

tegr

ated

pes

t man

agem

ent p

ract

ices

•Fu

nd re

sear

ch o

n de

velo

ping

mai

ze v

arie

ties

tole

rant

/res

ista

nt to

Fal

l Arm

y w

orm

and

oth

er

envi

ronm

enta

lly fr

iend

ly a

ppro

ache

s su

ch a

s us

e of

bi

olog

ical

con

trol a

gent

s an

d na

tura

l ene

mie

s

•Ef

fect

ive

chem

ical

s fo

r the

con

trol o

f FAW

be

com

mun

icat

ed to

farm

ers

•Es

tabl

ishm

ent o

f em

erge

ncy

fund

at

both

leve

ls o

f th

e G

over

nmen

ts

•Ze

ro ra

te/s

ubsi

dize

the

pest

icid

es fo

r con

trol o

f fal

l ar

my

Wor

ms

M

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

42Issu

esR

ecom

men

datio

ns

Short Term

Medium Term

Long Term


3.

Emer

ging

cha

lleng

es o

f clim

ate

chan

geAd

dres

s cl

imat

ech

ange

Prom

ote

clim

ate

smar

t agr

icul

ture

LM

OAL

F&I K

ALRO

and

Met

, Cou

ntie

s

Accu

rate

wea

ther

fo

reca

st fo

r bet

ter

plan

ning

Prom

ote

area

spe

cific

wea

ther

fore

cast

ing

and

timel

y ad

viso

ries

L

MO

ALF&

I KAL

ROan

d M

et, C

ount

ies

4.H

igh

Cos

t of p

rodu

ctio

nC

ost o

f pro

duct

ion

Redu

ctio

nRe

habi

litat

ion

of P

oor R

oads

and

Brid

ges

in m

aize

pr

oduc

ing

area

sS

Cou

nty

gove

rnm

ents

Ope

ning

New

road

s in

Agr

icul

tura

l Lan

ds fo

r ea

se o

f tra

nspo

rting

mai

ze p

rodu

ceM

Cou

nty

gove

rnm

ents

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

43Issu

esR

ecom

men

datio

ns

Short Term

Medium Term

Long Term


•Re

mov

al o

f VAT

on

agro

- che

mic

als

and

mac

hine

ry

acce

ssor

ies

/com

pone

nts

•H

arm

oniz

e ta

xatio

n sy

stem

acr

oss

the

EAC

regi

on

•Pr

ovid

e in

cent

ive

to e

nhan

ce a

dopt

ion

of

cons

erva

tion

agric

ultu

re. I

ntro

duce

sub

sidy

on

Con

serv

atio

n Ag

ricul

ture

.

•Le

gisl

atio

n an

d re

gula

tion

be fo

rmul

ated

to e

nsur

e im

plem

enta

tion.

•In

vest

in P

urch

ase

of C

onse

rvat

ion

Agric

ultu

re

Mac

hine

ries

and

equi

pmen

ts b

oth

for s

mal

l sca

le

and

larg

e sc

ale

Farm

ers.

•Pr

omot

e ec

onom

ies

of s

cale

thro

ugh

coop

erat

ives

/ fa

rmer

s’ g

roup

s fo

r col

lect

ive

actio

ns

S

Nat

iona

l Tre

asur

y,

Cou

ntie

s, C

GA,

M

inis

try o

f Tra

de,

Min

istry

of E

AC,

MO

ALF&

I

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

44Issu

esR

ecom

men

datio

ns

Short Term

Medium Term

Long Term


5.La

ck o

f acc

urat

e an

d tim

ely

data

Prov

isio

n of

ac

cura

te d

ata

on

prod

uctio

n an

d pr

oduc

tivity

leve

ls

Dev

elop

sta

ndar

d an

d tra

nspa

rent

met

hodo

logy

for

data

col

lect

ion,

ana

lysi

s an

d di

ssem

inat

ion

S

Cou

ntie

s,

MO

ALF&

I, KA

LRO

, KN

BS, T

egem

eo,

AFA,

CG

A, E

AGC

, U

nive

rsiti

es, C

OG

Impr

ove

coor

dina

tion

of

data

col

lect

ion

and

anal

ysis

Agr

icul

tura

l St

atis

tics

/da

ta to

add

ress

is

sues

of d

ata

harm

oniz

atio

n,

stan

dard

s,

coor

dina

tion

and

qual

ity

Inve

st m

ore

reso

urce

s in

dat

a ge

nera

tion

and

man

agem

ent

Cou

ntie

s,

MO

ALF&

I, KA

LRO

, KN

BS, T

egem

eo,

AFA,

CG

A, E

AGC

, U

nive

rsiti

es,C

OG

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

45Issu

esR

ecom

men

datio

ns

Short Term

Medium Term

Long Term


Upd

atin

g fa

rmer

s re

gist

ers

Cou

ntie

s to

regi

ster

thei

r far

mer

s an

d an

agg

rega

ted

natio

nal f

arm

ers

regi

ster

to

be d

evel

oped

S

Cou

ntie

s,

MO

ALF&

I, C

GA,

M

inis

try o

f IC

T,

KNBS

Prov

isio

n of

dai

ly

mar

ket i

nfor

mat

ion

Gat

herin

g of

com

mod

ities

pric

es lo

cally

and

re

gion

ally

, pro

ject

ing

a 30

day

’s tr

end

and

diss

emin

atin

g to

the

farm

ers

and

othe

r val

ue c

hain

pl

ayer

s th

roug

h lo

cal m

edia

hou

ses

S

Cou

ntie

s,

MO

ALF&

I, EA

GC

, RA

TIN

, IC

T m

edia

Prog

ram

med

se

ason

al

asse

ssm

ent a

nd

mon

itorin

g of

food

st

ocks

•D

evel

op a

cal

enda

r of s

easo

nal a

sses

smen

ts

•Re

vivi

ng th

e N

atio

nal F

ood

bala

nce

shee

t

•St

ream

line

repo

rting

and

val

idat

ion

mec

hani

sms

betw

een

coun

ties

and

natio

nal g

over

nmen

tS

Cou

ntie

s,

MO

ALF&

I,Tr

ader

s, M

illers

, KN

BS, E

AGC

, SFR

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

46Issu

esR

ecom

men

datio

ns

Short Term

Medium Term

Long Term


Rele

ase

of s

easo

nal

wea

ther

, pes

ts

and

dise

ase

advi

sorie

s fo

r cro

p de

velo

pmen

t

Faci

litat

e KA

LRO

to s

pear

hea

d th

e ea

rly w

arni

ng o

f pe

sts

and

dise

ases

L

Met

eoro

logi

cal

Dep

t and

M

OAL

F&I,

KALR

O

Stre

ngth

en

met

eoro

logi

cal

depa

rtmen

t to

impr

ove

relia

bilit

y an

d ac

cura

cy o

f w

eath

er fo

reca

sts

•In

crea

se fu

ndin

g to

the

Dep

artm

ent

•C

olla

bora

tion

with

oth

er w

eath

er fo

reca

stin

g ag

enci

esS

Met

Dep

t and

Nat

iona

l Tre

asur

y

6La

ck o

f hig

h-yi

eldi

ng m

aize

var

ietie

s to

lera

nt to

em

ergi

ng p

ests

and

dis

ease

Intro

duce

pr

oduc

tion

of G

MO

m

aize

Supp

ort K

ALRO

on

rese

arch

and

util

izat

ion

and

bios

afet

y of

GM

O v

arie

ties

whi

ch a

re h

igh

yiel

ding

and

to

lera

nt to

pes

ts a

nd d

isea

ses

SKA

LRO

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

47Issu

esR

ecom

men

datio

ns

Short Term

Medium Term

Long Term


7La

ck o

f sta

ndar

dise

d m

etho

d of

det

erm

inin

g co

st o

f mai

ze p

rodu

ctio

nSt

anda

rdiz

e m

etho

dolo

gy to

de

term

ine

cost

of

Prod

uctio

n an

d m

aize

gra

in p

rices

Dev

elop

and

Use

uni

form

and

tran

spar

ent t

empl

ate

for r

eal t

ime

data

cap

ture

, ana

lysi

s an

d di

ssem

inat

ion

for d

ecis

ion

mak

ing

S

KNBS

, MO

ALF&

I, Te

gem

eo, K

IPPR

A,

EAG

C,C

ount

ies,

C

GA,

AFA

8Lo

w E

xten

sion

: Far

mer

ratio

lead

ing

to lo

w a

dopt

ion

of a

gric

ultu

ral t

echn

olog

y di

ssem

inat

ion

and

adop

tion

Refo

rm d

eliv

ery

of

agric

ultu

ral s

ervi

ces

to c

onfo

rm to

de

volu

tion

•Pr

iorit

ise

exte

nsio

n at

bot

h na

tiona

l and

cou

nty

leve

ls

•U

se te

chno

logy

in e

xten

sion

ser

vice

s (ta

ke

adva

ntag

e of

hig

h m

obile

pen

etra

tion)

•St

reng

then

inte

r-gov

ernm

enta

l lin

kage

•M

inis

try to

est

ablis

h an

d se

nd s

enio

r offi

cers

to

Cou

ntie

s as

liai

son

offic

ers,

with

cle

ar ro

le a

nd jo

b de

scrip

tion,

cou

pled

with

ade

quat

e fa

cilit

atio

n

MC

ount

ies

and

MO

ALF&

I

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

48Issu

esR

ecom

men

datio

ns

Short Term

Medium Term

Long Term


Impr

ove

on

exte

nsio

n an

d te

chno

logy

di

ssem

inat

ion

•A

cond

ition

al g

rant

ext

ende

d to

the

coun

ties

to

empl

oy m

ore

exte

nsio

n st

aff a

nd fa

cilit

ate

thei

r op

erat

ions

:

•U

se te

chno

logy

mix

to s

uppo

rt ex

tens

ion

serv

ices

(IC

T, m

edia

)

S

Cou

ntie

s,

MO

ALF&

I, pr

ivat

e ex

tens

ion

pr

ovid

ers,

KAL

RO,

CG

A, T

reas

ury

Re-In

trodu

ctio

n

of C

ompu

lsur

y an

d Ex

amin

able

Ag

ricul

ture

Sub

ject

in

Prim

ary

Scho

ols

Dev

elop

Cur

ricul

um fo

r Agr

icul

ture

Sub

ject

in

Prim

ary

Scho

ols

MM

OAL

F&I

Min

of E

duca

tion

9Lo

w fu

ndin

g to

agr

icul

ture

Incr

ease

fund

ing

to

agric

ultu

re s

ecto

rAl

loca

te 1

0% o

f bud

geta

ry a

lloca

tion

to a

gric

ultu

re a

s pe

r the

Map

uto

decl

arat

ion

MC

ount

ies,

MO

ALF&

I

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

49Issu

esR

ecom

men

datio

ns

Short Term

Medium Term

Long Term


10Lo

w m

echa

nisa

tion

leve

ls o

f cro

p pr

oduc

tion

Enha

nce

mec

hani

satio

n in

th

e m

aize

sub

-se

ctor

•Fi

nalis

e th

e m

echa

nisa

tion

polic

y•

Fast

-trac

k im

plem

enta

tion

of th

e go

vern

men

t m

echa

nisa

tion

prog

ram

me

•In

vest

and

sub

sidi

se s

mal

l equ

ipm

ent f

or s

mal

l-sca

le

farm

ers

for e

xam

ple

wal

king

trac

tors

.•

Con

ditio

nal G

rant

s be

mad

e ou

t to

coun

ties

to m

eet

the

mec

hani

satio

n fin

anci

al n

eeds

.•

Expl

ore

the

poss

ibilit

y of

rollin

g-ou

t a fa

rm m

achi

nery

le

asin

g pr

ogra

mm

e

M

Cou

ntie

s,

MO

ALF&

I, C

GA,

Pr

ivat

e se

ctor

, Tr

easu

ry

11Lo

w u

tilis

atio

n of

sui

tabl

e im

prov

ed s

eed

varie

ties

Ensu

re fa

rmer

s us

e hi

gh-y

ield

ing

mai

ze

varie

ties

•Se

ed c

ompa

nies

to a

vail

adeq

uate

see

ds•

Supp

ort r

esea

rch

in d

evel

opin

g hi

gh-y

ield

ing

and

clim

ate

smar

t var

ietie

s (ri

ght v

arie

ty fo

r the

agr

o-ec

olog

ical

zon

es)

M

Cou

ntie

s,

KALR

O, S

eed

com

pani

es, K

enya

Se

ed c

ompa

ny,

STAK

,KEP

HIS

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

50Issu

esR

ecom

men

datio

ns

Short Term

Medium Term

Long Term


12N

on-a

dher

ence

to re

com

men

ded

agro

eco

logi

cal m

aize

sui

tabi

lity

pro

duct

ion

zone

sZo

ning

of c

ount

ies

base

d on

agr

o-

ecol

ogic

al z

ones

an

d co

mpa

rativ

e ad

vant

age

Alig

n su

bsid

ies

and

crop

insu

ranc

e to

cro

p en

terp

rises

that

hav

e co

mpa

rativ

e ad

vant

age

as p

er

the

AEZ

Cou

ntie

s,M

OAL

F&I

13Lo

w a

cces

s to

affo

rdab

le a

gric

ultu

ral c

redi

t by

mai

ze fa

rmer

sFi

nanc

ing

farm

ers

(cre

dit t

o fa

rmer

s)Al

loca

te m

ore

fund

s to

AFC

, Com

mod

ity F

und

and

othe

r len

ding

inst

itutio

ns. C

ount

ies

to d

evel

op

agric

ultu

ral e

nter

pris

e fu

ndS

Trea

sury

, M

OAL

F&I,

Cou

ntie

s

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

51Issu

esR

ecom

men

datio

ns

Short Term

Medium Term

Long Term


14Po

or s

oil f

ertil

itySo

il tes

ting

anal

ysis

•En

hanc

e ad

optio

n of

soi

l tes

ting

by m

akin

g it

affo

rdab

le•

To e

nhan

ce p

rodu

ctiv

ity, t

here

is n

eed

for s

oil

test

ing,

ther

efor

e, K

ALRO

sho

uld

be fa

cilit

ated

to

cond

uct s

oil t

estin

g, w

ith e

nhan

ced

mob

ile s

oil

test

ing

and

reco

mm

enda

tions

in th

e m

aize

gro

win

g co

untie

s•

Fast

-trac

k th

e so

il fe

rtilit

y po

licy

and

enac

tmen

t for

th

e le

gisl

atio

n on

soi

l

M

KALR

O, C

ount

ies,

pr

ivat

e se

ctor

, M

OAL

F&I,

CO

G,

NEM

A

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

52Issu

esR

ecom

men

datio

ns

Short Term

Medium Term

Long Term


15Su

b-op

timal

use

of i

dle

agric

ultu

ral l

and

and

unec

onom

ical

sub

divi

sion

of l

and

suita

ble

for m

aize

pro

duct

ion

Und

erta

ke in

vent

ory

of a

vaila

ble

idle

an

d su

b-op

timal

ly

man

aged

pub

lic

land

•Pr

ovid

e in

cent

ives

to p

rivat

e se

ctor

for i

nves

tmen

t in

such

land

•D

evel

op a

fram

ewor

k fo

r lea

sing

pub

lic la

nd to

en

cour

age

inve

stm

ent b

y pr

ivat

e se

ctor

for e

xam

ple

1-3

year

con

tract

s or

leas

es a

gree

men

t via

dire

ct

proc

urem

ent

•In

stitu

tions

with

ara

ble

land

to le

ase

it un

der

com

mer

cial

rate

s, w

hich

sho

uld

be in

the

finan

cial

Bi

ll. T

hese

fund

s to

be

reta

ined

by

the

leas

ing

inst

itutio

n

MC

ount

ies,

MO

ALF&

I

Ring

fenc

ing

of

agric

ultu

ral l

and

to

prev

ent s

ub-d

ivis

ion

into

une

cono

mic

al

size

s

•Re

view

of l

aws

gove

rnin

g ag

ricul

tura

l lan

d•

Impl

emen

tatio

n of

the

Nat

iona

l Lan

d po

licy

•En

act l

aws

to g

uara

ntee

long

-term

acc

ess

to le

ased

la

nd (7

-10

year

s) to

enc

oura

ge s

usta

inab

le u

se o

f la

nd

SM

inis

try o

f Lan

ds,

MO

ALF&

I


Chapter 4: Post Harvest Management, Marketing and Trade Challenges

Kenyan policy makers have been confronted by the classic “food price dilemma”. On one hand, they are under pressure to ensure that maize producers receive adequate incentives to produce, while on the other hand; cushion consumers against high food prices. Maize marketing and trade policy has been at the centre of debates, due to the food price dilemma. This has resulted in discussions over the appropriateness of trade barriers, and the role of government in ensuring adequate returns to maize production. In Kenya, maize trading is largely informal and un-structured, while at the regional level, it is not properly coordinated. This scenario calls for well-thought out guidelines, to drive maize trading at the county, national and regional levels.

4.1 Post-harvest losses

The average post-harvest loss in maize is estimated at 10% - 40%. Among the challenges include: inadequate harvesting and handling technologies at farm level, lack of post-harvest handling facilities; high cost of storage materials, equipment and chemicals, inadequate drying facilities, and increased incidences of toxins (aflatoxin and fumonisins). Recommendations for these challenges are outlined in the table below:

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

54

Issu

esR

ecom

men

datio

n

Short Term

Medium Term

Long Term

Res

pons

ible

Inst

itutio

n (W

ho)

1.M

aize

mar

ketin

g an

d pr

icin

gSt

anda

rdiz

e m

etho

dolo

gy fo

r de

term

inin

g m

aize

gr

ain

pric

es

Dev

elop

uni

form

and

tran

spar

ent t

empl

ate

for r

eal

time

data

cap

ture

, ana

lysi

s an

d di

ssem

inat

ion

for

deci

sion

mak

ing

S

KNBS

, MO

ALF&

I, Te

gem

eo, K

IPPR

A,

EAG

C, C

ount

ies,

C

GA,

AFA

Mon

itorin

g an

d pr

ojec

tion

of

com

mod

ity p

rices

and

m

arke

ts

Car

ry o

ut s

easo

nal s

urve

ys

S

MO

ALF&

I, Te

gem

eo,

EAG

C, C

ount

ies,

RA

TIN

, KN

BS, C

GA,

C

MA,

UG

MA

Esta

blis

h a

stak

ehol

der s

tand

ing

com

mitt

ee d

raw

n fro

m C

OG

, MO

A, M

OT,

Mille

rs a

nd re

pres

enta

tives

fro

m fa

rmer

s, m

illers

, SFR

thro

ugh

a le

gisl

ativ

e am

endm

ent t

o th

e SF

R re

gula

tion.

The

Com

mitt

ee

to re

gula

rly m

eet d

ebat

e an

d m

ake

pric

e re

com

men

datio

ns b

ased

on

mar

ket t

rend

s

M

MO

ALF&

I, Te

gem

eo,

EAG

C, C

ount

ies,

RA

TIN

, KN

BS, C

GA,

C

MA,

UG

MA

4.2

Pos

t H

arve

st M

anag

emen

t, M

arke

ting

and

Tra

de R

ecom

men

dati

ons

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

55

Issu

esR

ecom

men

datio

n

Short Term

Medium Term

Long Term

Res

pons

ible

Inst

itutio

n (W

ho)

Prom

ote

cont

ract

fa

rmin

gFa

rmer

s an

d ag

greg

ator

s to

ent

er le

gal b

indi

ng

cont

ract

s w

ith S

FR/m

illers

. Thi

s ca

n be

fina

nced

by

AFC

, sel

f-fina

nced

, or t

hrou

gh w

areh

ousi

ng re

ceip

t sy

stem

M

Cou

ntie

s, M

OAL

F&I,

SFR,

Mille

rs

Pric

e gu

aran

tee

for

farm

ers

•En

hanc

e cr

op in

sura

nce

to c

over

all

mai

ze fa

rmer

s.•

Stre

amlin

e cr

op in

sura

nce

to c

over

are

as w

here

th

ey a

re c

ompe

titiv

ely

prod

uced

•G

over

nmen

t to

nego

tiate

with

insu

ranc

e co

mpa

nies

fo

r low

er p

rem

ium

s

s

SFR,

Mille

rs,

MO

ALF&

I, In

sura

nce

com

pani

es

•Im

plem

ent C

ontra

ct fa

rmin

g•

Re-in

trodu

ce G

uara

ntee

d m

inim

um re

turn

s (G

MR)

L

SFR,

Mille

rs,

MO

ALF&

I, In

sura

nce

com

pani

es

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

56

Issu

esR

ecom

men

datio

n

Short Term

Medium Term

Long Term

Res

pons

ible

Inst

itutio

n (W

ho)

•Pa

rliam

ent t

o fa

st-tr

ack

amen

dmen

ts o

n th

e Tr

ade

Rem

edy

Act

•M

aint

ain

rest

rictio

n on

impo

rtatio

n of

gra

in

and

mai

ze m

eal f

rom

any

cou

ntry

that

hav

e co

mm

erci

aliz

ed G

MO

•M

otiv

ate

mille

rs to

pro

cure

mai

ze lo

cally

bef

ore

impo

rtatio

n th

roug

h ta

x in

cent

ives

•Le

gisl

ate

setti

ng u

p an

Inde

pend

ent T

rans

pare

nt

Gra

in In

form

atio

n pu

blis

hing

sys

tem

(com

posi

tion

will

incl

ude

coop

erat

ives

, reg

iste

red

aggr

egat

ors,

na

tiona

l and

cou

nty

gove

rnm

ent)

Cus

hion

pro

duce

rs

agai

nst c

heap

impo

rts•

EAG

C to

dev

elop

and

dis

sem

inat

e tim

ely

trade

da

ta.

•Es

tabl

ish

natio

nal a

nd c

ount

y st

atis

tics

units

to

colle

ct a

gric

ultu

re d

ata

and

gene

rate

agr

icul

tura

l st

atis

tics

for N

atio

nal a

nd C

ount

y pl

anni

ng. T

his

is

to b

e do

ne b

y th

e en

d of

201

8/19

fina

ncia

l yea

r

S

Min

istry

of T

rade

, Pa

rliam

ent M

inis

try

of E

AC, M

OAL

F&I

Mille

rs, A

FAKR

A, N

atio

nal

Trea

sury

, KeB

S,

NBA

, KEP

HIS

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

57

Issu

esR

ecom

men

datio

n

Short Term

Medium Term

Long Term

Res

pons

ible

Inst

itutio

n (W

ho)

•Re

stru

ctur

e N

CPB

as

auto

nom

ous

and

be th

e so

le

impo

rter o

f dut

y fre

e m

aize

out

side

EAC

in th

e co

untry

and

be

allo

wed

to tr

ade

(buy

and

sal

e)

mai

ze s

tock

s. D

urin

g re

stru

ctur

ing,

som

e SF

R ro

les

wou

ld b

e tra

nsfe

rred

to N

CPB

for e

ase

of

oper

atio

ns w

hile

MO

A w

ould

pro

vide

ove

rsig

ht to

N

CPB

•M

aize

defi

cits

pro

ject

ions

sho

uld

be d

ecla

red

by

the

info

rmat

ion

syst

em o

n tim

e be

fore

allo

win

g tim

ely

impo

rts b

ased

on

stat

istic

s (th

e in

form

atio

n on

defi

cit i

s by

SFR

and

NC

PB w

ill be

the

sole

im

porte

r).•

Ope

ratio

naliz

e bu

y Ke

nya

build

Ken

ya in

the

mai

ze

indu

stry

•H

arm

oniz

e EA

C b

oard

er fe

e im

bala

nces

, le

gisl

atur

e to

inte

rven

e

Upd

atin

g fa

rmer

s re

gist

ers

Cou

ntie

s to

regi

ster

thei

r far

mer

s an

d an

agg

rega

ted

natio

nal f

arm

ers

regi

ster

to b

e de

velo

ped

SC

ount

ies,

MO

ALF&

I, C

GA,

Min

istry

of I

CT,

KN

B

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

58

Issu

esR

ecom

men

datio

n

Short Term

Medium Term

Long Term

Res

pons

ible

Inst

itutio

n (W

ho)

Prov

isio

n of

dai

ly

mar

ket i

nfor

mat

ion

and

outre

ach

to s

mal

l sca

le

farm

ers

•G

athe

ring

of c

omm

odity

pric

es lo

cally

and

re

gion

ally

, pro

ject

ing

a 30

day

’s tr

end

and

diss

emin

atin

g to

the

farm

ers

and

othe

r val

ue c

hain

pl

ayer

s th

roug

h lo

cal m

edia

hou

ses

•Pr

ice

disc

over

y fo

r far

mer

s th

at c

onsi

ders

cos

t of

prod

uctio

n an

d pe

rcen

t mar

kup

S

Cou

ntie

s, M

OAL

F&I,

EAG

C-R

ATIN

, IC

T m

edia

•Pr

omot

e re

gist

ered

agg

rega

tors

, priv

ate

war

ehou

ses,

and

form

atio

n of

coo

pera

tives

in th

e bu

ying

cen

ters

•Re

-intro

duce

GM

R to

con

tract

ed fa

rmer

s•

Revi

ve a

nd re

vam

p in

stitu

tions

suc

h as

KFA

, AFC

, an

d KG

GC

U to

pla

y th

eir r

oles

bet

ter.

•In

stitu

tions

ser

ving

farm

ers

such

as

AFC

sho

uld

rem

ain

unde

r MO

ALF&

I.•

Farm

ers

shou

ld b

e re

pres

ente

d in

the

AFC

m

anag

emen

t boa

rd

M

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

59

Issu

esR

ecom

men

datio

n

Short Term

Medium Term

Long Term

Res

pons

ible

Inst

itutio

n (W

ho)

Com

men

cem

ent o

f SF

R m

aize

pur

chas

eTo

cov

er a

ll m

aize

gro

win

g C

ount

ies,

NC

PB s

houl

d co

nsid

er c

ropp

ing/

har

vest

ing

cale

ndar

of e

ach

Cou

nty

S

2Fo

od s

ecur

ityAs

sess

the

actu

al

dem

and

for m

aize

for

milli

ng, a

nim

al fe

eds

and

othe

r use

s

Do

asse

ssm

ents

and

ana

lysi

s of

the

chan

ging

co

nsum

ptio

n pa

ttern

s an

d re

ports

on

proj

ecte

d de

man

d to

be

done

60

days

ahe

ad o

f the

resp

ectiv

e pl

antin

g se

ason

sS

Tege

meo

, Cou

ntie

s,

MO

ALF&

I, M

illers

&

othe

r pro

cess

ors,

D

istri

butio

n &

Reta

il Tr

ade,

Uni

vers

ities

Redu

ctio

n in

pos

t- ha

rves

t los

ses

Mas

s se

nsiti

zatio

n of

pro

duce

rs a

nd in

dust

ry p

laye

rs

on p

ost-h

arve

st m

anag

emen

t.S

Cou

ntie

s,M

OAL

F&I

Faci

litat

e fa

rmer

s / c

oope

rativ

es to

est

ablis

h m

ore

drie

rs a

nd s

tora

ge fa

cilit

ies

S

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

60

Issu

esR

ecom

men

datio

n

Short Term

Medium Term

Long Term

Res

pons

ible

Inst

itutio

n (W

ho)

Rest

ruct

urin

g of

NC

PB•

Re-d

efine

the

role

of N

CPB

in g

rain

han

dlin

g an

d m

arke

ting

fast

- tra

ck im

plem

enta

tion

of E

&Y R

epor

t re

gard

ing

priv

atiz

atio

n as

Gra

in C

orpo

ratio

n of

Ke

nya.

•Re

-defi

ne th

e ro

le o

f Cou

ntie

s in

gra

in h

andl

ing

and

mar

ketin

g•

Revi

ew th

e Ac

t CAP

338

est

ablis

hing

NC

PB to

in

clud

e al

l sta

keho

lder

s in

•th

e bo

ard

incl

udin

g C

ount

ies

and

farm

er

orga

niza

tions

M

Rest

ruct

urin

g SF

RC

hang

e op

erat

iona

l stra

tegi

es fo

r SFR

suc

h th

at

ther

e is

no

mar

ket d

isto

rtion

S

SFR,

MO

ALF&

I, N

atio

nal T

reas

ury

•En

hanc

e SF

R st

ocks

to 6

milli

on x

90K

g ba

gs•

Con

vert

the

Stra

tegi

c Fo

od R

eser

ve T

rust

Fun

d to

Pa

rast

atal

•Re

view

the

regu

latio

ns e

stab

lishi

ng S

FR to

incl

ude

all s

take

hold

ers

in th

e bo

ard

incl

udin

g C

ount

ies

and

farm

er o

rgan

izat

ions

M

SFR,

MO

ALF&

I, N

atio

nal T

reas

ury

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

61

Issu

esR

ecom

men

datio

n

Short Term

Medium Term

Long Term

Res

pons

ible

Inst

itutio

n (W

ho)

Har

mon

ized

Foo

d se

curit

y in

form

atio

n sy

stem

•Re

-defi

ne th

e ro

le o

f the

SFR

Ove

rsig

ht B

oard

•Es

tabl

ish

SFR

as a

sta

te C

orpo

ratio

nM

Cou

ntie

s,M

OAL

F&I

3Fo

od s

afet

y/Po

st-H

arve

st M

anag

emen

t

Red

uctio

n in

pos

t- ha

rves

t los

ses

•Re

mov

e im

port

dutie

s an

d Ze

ro-ra

te V

AT o

f po

st-h

arve

st te

chno

logi

es (H

erm

atic

bag

s, s

ilos,

co

nvey

ers,

cle

aner

s, d

riers

and

its

acce

ssor

ies

etc)

•

Reco

nditi

onin

g of

all

NC

PB s

tore

s an

d si

los

•Pu

rcha

se n

ew e

ffici

ent d

riers

S

MO

ALF&

I, EA

GC

, KR

A, N

CPB

, C

ount

ies,

indu

stry

pl

ayer

s

Esta

blis

h an

inde

pend

ent b

ody

to d

o re

gula

r in

spec

tion

for q

ualit

y co

ntro

l of g

rain

s st

ores

, pro

vide

gu

idel

ines

on

food

han

dlin

g st

anda

rds

and

issu

ance

of

insp

ectio

n ce

rtific

ate.

M

MO

ALF&

I, EA

GC

, KR

A, N

CPB

, C

ount

ies,

indu

stry

pl

ayer

s

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

62

Issu

esR

ecom

men

datio

n

Short Term

Medium Term

Long Term

Res

pons

ible

Inst

itutio

n (W

ho)

Asse

ss th

e lo

sses

al

ong

the

valu

e ch

ain

•G

ener

ate

data

on

post

- har

vest

loss

es a

long

the

valu

e ch

ain

for e

ffect

ive

resp

onse

•

Map

the

area

s th

at a

re p

rone

to A

flato

xin

and

Prom

ote

use

of A

FLAS

AFE,

Aflt

oxin

Kits

•Su

ppor

t in

post

-har

vest

equ

ipm

ent i

nclu

ding

dr

yers

, she

llers

, onf

arm

sto

rage

•Su

ppor

t mor

e re

sear

ch o

n Fu

mon

icin

s•

Map

and

reco

mm

end

the

agro

eco

logi

cal s

uita

bilit

y Zo

nes

of v

ario

us c

rops

•D

evel

op h

arm

oniz

ed to

xin

anal

ytic

al p

roce

dure

s an

d st

anda

rds

used

by

vario

us o

rgan

izat

ions

(K

EBS,

Pub

lic H

ealth

, KEP

HIS

) •

Man

dato

ry A

flato

xin

Test

at d

eliv

ery

of m

aize

at

NC

PB D

epot

s•

Any

Mai

ze tr

ansf

erre

d / i

mpo

rted

mus

t be

certi

fied

to b

e to

xin

Free

•D

evel

op p

olic

y gu

idel

ine

to d

isco

urag

e st

ooki

ng o

f M

aize

to m

inim

ize

aflat

oxin

infe

stat

ion

S

KALR

O, C

ount

ies,

M

OAL

F&I,

Priv

ate

Sect

or

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

63

Issu

esR

ecom

men

datio

n

Short Term

Medium Term

Long Term

Res

pons

ible

Inst

itutio

n (W

ho)

Dev

elop

Nat

iona

l st

rate

gy fo

r pos

t-ha

rves

t man

agem

ent

Dev

elop

men

t of a

nat

iona

l stra

tegy

for r

educ

tion

of

PHL

in M

aize

SM

OAL

F&I

Util

izat

ion

of a

floto

xin

infe

cted

mai

ze•

Use

of b

inde

rs b

y Fe

ed M

illers

•U

se o

f afla

toxi

n in

fest

ed m

aize

for e

than

ol

prod

uctio

nM

KALR

O, C

ount

ies,

Pr

ivat

e Se

ctor

, KEB

s

Prov

ide

ince

ntiv

es fo

r pr

ivat

e se

ctor

to in

vest

in

mod

ern

stor

age

faci

litie

s an

d on

-farm

st

orag

e fa

cilit

ies

•Al

low

long

term

inve

stm

ents

by

priv

ate

sect

or in

G

over

nmen

t/NC

BP u

nder

- util

ized

Fac

ilitie

s•

Dev

elop

a P

PP m

odel

s to

sup

port

Coo

pera

tive

stor

age

initi

ativ

esM

NC

PB, P

rivat

eSe

ctor

, , C

ount

ies,

Tr

easu

ry, M

OAL

F&I

Prov

isio

n of

dry

ers

and

deve

lopm

ent o

f mor

e st

ores

Con

ditio

nal g

rant

s to

Cou

ntie

sL

MO

ALFI

and

Cou

ntie

s

Tech

nolo

gy p

rom

otio

nPr

omot

e he

rmat

ic b

ags,

pla

stic

/met

al s

ilos

etc

for o

n-fa

rm s

tora

geS

Cou

ntie

s, M

OAL

FI

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

64

Issu

esR

ecom

men

datio

n

Short Term

Medium Term

Long Term

Res

pons

ible

Inst

itutio

n (W

ho)

4 Va

lue

addi

tion

Invo

lve

parti

cipa

tion

of

priv

ate

sect

orId

entif

y ba

rrier

s to

priv

ate

sect

or p

artic

ipat

ion

SM

OAL

FI, M

inis

try

of T

rade

, Cou

ntie

s;

KIPP

RA;

Prom

ote

PPP

inve

stm

ent

MM

OAL

FI, M

inis

try

of, T

rade

, Cou

ntie

s;

KIPP

RA; T

reas

ury

Redu

ce p

ress

ure

on

mai

ze•

Giv

e in

cent

ives

for m

aize

ble

ndin

g•

Supp

ort i

nitia

tives

to e

xpan

d pr

oduc

tion

of M

illet,

sorg

hum

and

cas

sava

M

MO

ALF&

I, , M

OH

, M

inis

try o

f Tra

de;

Cou

ntie

s; K

EBS

Mai

ze m

illing

and

pr

oces

sing

into

al

tern

ativ

e us

es

Faci

litat

ing

farm

ers

coop

erat

ives

to in

vest

in m

illing

(tr

ansf

er to

1-2

mon

ths)

SM

OAL

F&I,

Cou

ntie

s, P

PP

Inve

stm

ent i

n a

milli

ng p

lant

in e

ach

of th

e 8

mai

n gr

ain

prod

ucin

g C

ount

ies

MM

OAL

F&I,

Cou

ntie

s, P

PP

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

65

Issu

esR

ecom

men

datio

n

Short Term

Medium Term

Long Term

Res

pons

ible

Inst

itutio

n (W

ho)

5M

arke

t stru

ctur

esPr

omot

e st

ruct

ured

m

arke

ts u

p th

e va

lue

chai

n

•In

trodu

ctio

n of

mai

ze C

omm

odity

Exc

hang

e•

Prom

ote

inte

r-Cou

nty

trade

usi

ng th

e re

gion

al

econ

omic

blo

cks

Cou

ntie

s, M

OAL

F&I,

Min

istry

of T

rade

Invo

lve

yout

h in

ag

ribus

ines

s an

d va

lue

addi

tion

(mak

e fa

rmin

g co

ol)

•In

cent

iviz

e gr

owth

of S

MEs

- (in

frast

ruct

ure,

risk

s,

tax

and

regu

latio

n)

•In

trodu

ce y

outh

frie

ndly

farm

ing

tech

nolo

gies

S

Cou

ntie

s,M

OAL

F&I,

FAO

Pric

e de

term

inat

ion

at

the

begi

nnin

g of

the

seas

on

SFR

to c

ontra

ct fa

rmer

s at

the

begi

nnin

g of

the

seas

on w

ith a

pre

-det

erm

ined

pric

eM

SFR,

Cou

ntie

s,

MO

ALF&

I, Te

gem

eo

Incr

ease

gra

in s

tora

ge

capa

city

Cre

ate

a fu

nd to

sup

port

coop

erat

ives

to b

uild

st

orag

e st

ores

SN

atio

nal T

reas

ury,

M

OAL

F&I,

Cou

ntie

s,

Priv

ate

sect

or

Incr

ease

bud

geta

ry a

lloca

tion

for g

rain

sto

rage

silo

co

nstru

ctio

n in

eve

ry c

onst

ituen

cyM

Nat

iona

l Tre

asur

y,

MO

ALF&

I, C

ount

ies,

Pr

ivat

e se

ctor

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

66

Issu

esR

ecom

men

datio

n

Short Term

Medium Term

Long Term

Res

pons

ible

Inst

itutio

n (W

ho)

•Re

furb

ishm

ent o

f exi

stin

g st

orag

e fa

cilit

ies

at

NC

PB, K

FA•

Con

stru

ctio

n of

new

gra

in s

tora

ge fa

cilit

ies,

at l

east

a

stor

e in

eac

h su

b-co

unty

whe

re m

aize

is g

row

n•

Gov

ernm

ent b

uild

add

ition

al s

tora

ge fa

cilit

ies

(silo

s) o

f var

ious

cap

aciti

es in

con

stitu

enci

es w

here

m

aize

is g

row

n•

PPP

invo

lvem

ent i

n gr

ain

stor

age

L

Nat

iona

l Tre

asur

y,

MO

ALF&

I, C

ount

ies,

Pr

ivat

e se

ctor

6Po

or c

oord

inat

ion

betw

een

the

two

leve

ls o

f gov

ernm

ent

Stre

ngth

en

inte

rgov

ernm

enta

l co

oper

atio

n an

d co

ordi

natio

n m

echa

nism

s to

en

hanc

e Jo

int p

lann

ing

and

impl

emen

tatio

n of

ac

tiviti

es

•St

reng

then

JAS

SCO

M m

echa

nism

and

pro

vide

bu

dget

ary

allo

catio

n fo

r its

act

iviti

es•

Min

istry

to e

stab

lish

and

send

sen

ior o

ffice

rs to

C

ount

ies

as li

aiso

n of

ficer

s w

ith c

lear

role

and

job

desc

riptio

n co

uple

d w

ith a

dequ

ate

faci

litat

ion

to

supp

ort c

ount

y de

liver

y un

itsS

Cou

ntie

s, M

OAL

F&I.,

Tr

easu

ry


Chapter 5: ConclusionThe maize Task Force was constituted to make recommendations for the development of the maize industry in the country. Based on the terms of reference for the maize Task Force, the following recommendations are made for various stages of the maize value chain.

5.1. Legal and policy Issues

5.1.1 Policy Recommendations

i. Implement the ‘Big 4 Agenda’ and especially the ‘buy-Kenya-build-Kenya’ Government Policy

ii. Implement the Agricultural Sector Transformation and Growth Strategy (ASTGS) 2018-2030

iii. Implement the Maputo Declaration on 10% budgetary allocation on agriculture especially maize crop

iv. Revise the land use policy to support land consolidation

5.1.2 Legal Recommendations

i. Develop the regulations and strengthen of the Food and Agriculture Authority Board and the Commodities Fund to operationalize the Crops Act

ii. Agriculture and Food Authority Act: develop the regulations in order to strengthen the Food and Agriculture Authority Board for effective implementation of its mandate

iii. Kenya Agricultural and Livestock Research Act (KALR Act): develop the regulations to fully operationalize the Act to ensure efficient research is undertaken in the maize sub-sector

iv. Kenya Trade Remedies Act: Implement the provisions of the Act and the proposed amendments and develop


comprehensive regulations to give effect to the Act and operationalize the Kenya Trade Remedies Agency

v. National Cereals and Produce Board (NCPB): review the Act to restructure the NCPB and make it autonomous and independent to perform its functions efficiently

vi. Strategic Food Reserve Trust Fund Regulations 2015: Enact a comprehensive SFR Act and comprehensive regulations to give effect to the Act; and to establish an autonomous and independent entity (State Corporation) to enhance its autonomy and performance

vii. Agricultural Finance Corporation Act: Review the Act in order to revamp and align the AFC with other institutions that deal with the maize sector for efficient operations

viii. Agricultural Development Corporation Act: Review of the Act in order to revamp and align the ADC with other institutions that deal with the maize sector for efficient operations

ix. Public Private Partnerships Act: Establish institutional mechanism to collaborate with the PPP Committee of the National Treasury in order to promote PPP in maize sector management

x. Consumer Protection Act: Enforce the provisions of the Act in order to ensure food safety (no aflatoxin) and to ensure price stability in favour of consumers

xi. The Competition Act: Enforce the provisions of the Act to promote fair trade (local/regional/international), fair market practices and to prevent market distortion (prices/supply)

xii. Constitutional Consultation & Collaboration between National & County Governments: Strengthen the Joint Agriculture Sector Steering Committee (JASSCOM) and other joint commissions


or committees that may be established under the Inter-Governmental Relations Act 2012 to enhance coordination between the national and County Governments in the maize sub-sector

xiii. WRS Bill 2018: Fast-track the enactment of the WRS Bill into law in order to increase supply chain efficiency

xiv. Farmer registration: Fast track registration of farmers for proper identification and planning purposes

xv. Strong efficient institutions: Ensure implementation of legislation and institutional collaboration to ensure food safety for imported maize

xvi. The Cooperative Societies Act: Undertake amendments/review of the cooperative Act and strengthen governance in farmers cooperatives

xvii. The East African Common Market Protocol and Customs Union Protocol: Enforce the provisions of the Protocols in line with the Kenya policies and laws in order to protect the domestic market from distortion, over-importation through the implementation of the countervailing and safeguard measures

5.2. Production issues

i. Restructure the fertilizer subsidy program to improve access and timely delivery, incorporate soil quality and crop needs in fertilizer decisions, and include private sector in the fertilizer subsidy program

ii. Revamp extension systems to:a. Enhance dissemination of information, knowledge and

technologiesb. Promote adoption of improved varietiesc. Promote appropriate mechanization


d. Promote effective agronomic practicese. Build resilience to climate change and variability

iii. Promote short term leases of public land for commercial maize production

5.3. Marketing stage

i. Facilitate investments in post-harvest handling, storage and management

ii. Facilitate establishment of aggregation centres at county levels

iii. Facilitate small and medium enterprises for value addition

iv. Develop structured markets for grains that include registered warehouses, standards and quality assurance through sampling testing and certification, trade contracts, trade platform e.g. commodity exchange to facilitate buying, selling, clearing and settlement

5.4. Cross cutting issues

i. Enhance access to affordable credit

ii. Eliminate tax on inputs as well as harmonise taxation within the EAC

iii. Establish data units at national and county levels, develop standard methodology and approaches to generate agricultural statistics, enhance capacity to routinely collect and manage data, and promote evidence based policy decision making

iv. The Task Force recommends that there be established a Standing Multi-Sectoral Committee to oversee the implementation of the recommendations of this Task Force Report in order to ensure efficient and effective management of the maize sub-sector for the benefit of all the stakeholders in the value chain

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

71No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

Who

Tim

elin

es

1.Ke

nya

Visi

on

2030

Ferti

lizer

Cos

t Red

uctio

n St

rate

gy:

a)To

add

ress

the

issu

es o

f ac

cess

and

affo

rdab

ility

of

ferti

lizer

a)Re

desi

gn th

e fe

rtiliz

er s

ubsi

dy

prog

ram

MO

ALF&

I; C

ount

ies

Shor

t Ter

m

b)Im

plem

ente

d th

roug

h 3-

tiere

d fe

rtiliz

er c

ost-

redu

ctio

n pr

ogra

mm

e in

volv

ing

purc

hasi

ng a

nd

supp

ly c

hain

impr

ovem

ents

in

the

mar

ket f

or th

is in

put

and

the

blen

ding

and

loca

l m

anuf

actu

ring

of fe

rtiliz

er.

b)Th

e ne

w p

rogr

am s

houl

d ta

ke

adva

ntag

e of

ext

ensi

ve a

gro

deal

ers

netw

ork

(priv

ate

sect

or)

c)N

eed

to h

ave

exis

t stra

tegy

to

mak

e it

sust

aina

ble

d)Pr

ovid

e in

cent

ives

for

priv

ate

sect

or le

d fe

rtiliz

er

man

ufac

turin

g an

d bl

endi

nge)

Ens

ure

favo

urab

le T

ax a

nd

regu

latio

n

Key

Gap

si.

Bulk

pro

cure

men

t of s

ubsi

dize

d fe

rtiliz

er o

n- g

oing

but

sup

ply

chai

n/ac

cess

ibilit

y by

sm

all f

arm

ers

loca

ted

far f

rom

N

CPB

dep

ots

still

a b

ig c

halle

nge

ii. T

he s

ubsi

dy p

rogr

am is

not

tim

e bo

und

and

has

no e

xit s

trate

gyiii.

No

gove

rnm

ent

ince

ntiv

es to

priv

ate

sect

or to

inve

st in

ferti

lizer

man

ufac

turin

g

Ann

ex 1

: Po

licy

& L

egal

Fra

mew

ork

Rec

omm

enda

tion

s

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

72No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

Who

Tim

elin

es

2.Ag

ricul

ture

Sec

tor D

evel

opm

ent S

trate

gy (A

SDS

2010

-202

0)a)

Incr

ease

sec

tor g

row

th

from

3%

to 7

% a

nnua

lly

by in

crea

sing

pro

duct

ivity

pa

rticu

larly

for m

aize

and

in

crea

se fo

od s

ecur

ity

parti

cula

rly m

aize

a)Re

form

del

iver

y of

agr

icul

tura

l se

rvic

es to

con

form

to d

evol

utio

nM

OAL

F&I;

Cou

ntie

sSh

ort T

erm

b)En

surin

g ef

fect

ive

coor

dina

tion

and

impl

emen

tatio

n

b)Re

vam

p ex

tens

ion

serv

ice

by

empl

oyin

g m

ore

exte

nsio

n st

aff

to a

nd fa

cilit

ate

the

staf

f to

reac

h fa

rmer

s

c)Pr

omot

ing

inve

stm

ent a

nd

enco

urag

e pr

ivat

e se

ctor

pa

rtici

patio

n

c)Fa

st-tr

ack

impl

emen

tatio

n of

w

areh

ouse

rece

ipt s

yste

m b

ill 20

18 to

add

ress

pos

t- ha

rves

t lo

sses

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

73No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

Who

Tim

elin

es

Agric

ultu

re

Sect

or

Dev

elop

men

t St

rate

gy (A

SDS

2010

-202

0)

d)Pr

omot

ing

sust

aina

ble

land

and

nat

ural

reso

urce

s m

anag

emen

t

d)En

hanc

e ad

optio

n of

soi

l te

stin

g by

mak

ing

it af

ford

able

e)Re

form

ing

deliv

ery

of

agric

ultu

ral s

ervi

ces

e)Pr

iorit

ize

exte

nsio

n at

bot

h na

tiona

l and

cou

nty

leve

ls

f)Inc

reas

ing

mar

ket a

cces

s an

d tra

de

g)En

surin

g ef

fect

ive

coor

dina

tion

and

impl

emen

tatio

nKe

y G

aps

i. Av

erag

e an

nual

sec

tor

grow

th is

stil

l bel

ow ta

rget

ii. P

oor q

ualit

y of

see

ds,

poor

farm

ing

prac

tices

, im

prop

er u

se o

f fer

tiliz

ers

with

lack

of s

oil n

utrie

nt re

quire

men

ts a

ll af

fect

pr

oduc

tivity

of m

aize

iii. H

igh

post

-har

vest

loss

es c

ontri

bute

to fo

od in

secu

rity

iv. P

oor e

xten

sion

del

iver

y sy

stem

s st

ill ex

ist

v. F

arm

ers

still

grap

ple

with

mar

ket a

cces

s ch

alle

nges

vi. P

oor c

oord

inat

ion

betw

een

two

leve

ls o

f gov

ernm

ents

stil

l exi

sts

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

74No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

Who

Tim

elin

es

3.Ag

ricul

tura

l Sec

tor T

rans

form

atio

n an

d G

row

th S

trate

gy (A

STG

S) a

nd th

e N

aiva

sha

Ret

reat

a)H

ow to

redu

ce p

ress

ure

on m

aize

thro

ugh

blen

ding

of

mai

ze fl

our

a)Pr

omot

e/su

ppor

t pro

duct

ion

of

alte

rnat

ive

crop

s to

be

used

as

blen

ds

MO

ALF&

I; C

ount

ies

Shor

t Ter

m

b)In

crea

se lo

cal p

rodu

ctio

n th

roug

h re

ntin

g-ou

t/lea

sing

id

le a

gric

ultu

ral p

ublic

land

to

com

mer

cial

/priv

ate

prod

ucer

s

b)U

nder

take

inve

ntor

y of

av

aila

ble

publ

ic la

nd

c)N

eed

for p

redi

ctab

le

pric

ing

polic

y di

rect

ion

to

enco

urag

e in

vest

men

t

c)Pr

ovid

e in

cent

ives

to p

rivat

e se

ctor

s fo

r inv

estm

ent i

n su

ch

land

d)N

eed

to h

ave

syst

em fo

r m

easu

ring

the

impa

cts

of

the

ASTG

S

d)A

fram

ewor

k fo

r lea

sing

pub

lic

land

nee

d to

be

deve

lope

d to

enc

oura

ge in

vest

men

t by

pr

ivat

e se

ctor

e.g

. med

ium

to

long

term

con

tract

s/le

ase

agre

emen

t

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

75

No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

Who

Tim

elin

es

Agric

ultu

ral

Sect

or

Tran

sfor

mat

ion

and

Gro

wth

St

rate

gy

(AST

GS)

and

th

e N

aiva

sha

Ret

reat

e)So

il fe

rtilit

y re

stor

atio

n an

d m

aint

enan

ce p

olic

y di

rect

ion

e)D

evel

op A

g. S

tatis

tics/

data

man

agem

ent p

olic

y fo

r ad

dres

sing

issu

es o

f dat

a ha

rmon

izat

ion,

sta

ndar

ds,

coor

dina

tion,

dev

olut

ion

and

qual

ity im

prov

emen

t

f)Hig

h co

st o

f pro

duct

ion

and

low

yie

lds

f)Bui

ld a

resu

lts fr

amew

ork

to

repo

rt AS

TGS

prog

ress

and

im

pact

s

g)Sp

ecia

l mec

hani

sm fo

r re

spon

ding

to p

rodu

ctio

n sh

ocks

lack

ing.

e.g

dis

ease

s an

d pe

sts

g)Fa

st tr

ack

the

soil

ferti

lity

polic

y an

d en

actm

ent f

or th

e le

gisl

atio

n on

soi

l

h)C

umbe

rsom

e go

vern

men

t te

nder

ing

proc

edur

es e

ven

in re

spon

ding

to p

rodu

ctio

n sh

ocks

suc

h as

dis

ease

s an

d pe

sts

h)Re

vam

p ex

tens

ion

deliv

ery

syst

em

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

76No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

Who

Tim

elin

es

Agric

ultu

ral

Sect

or

Tran

sfor

mat

ion

and

Gro

wth

St

rate

gy

(AST

GS)

and

th

e N

aiva

sha

Ret

reat

i)Use

tech

nolo

gy to

ext

ensi

on

serv

ices

(tak

e ad

vant

age

of h

igh

mob

ile p

enet

ratio

n

j)Pro

vide

exc

eptio

ns in

the

tend

erin

g pr

oces

s w

hen

deal

ing

with

em

erge

ncie

s

Key

Gap

s/C

halle

nges

i. Th

e co

untry

is d

efici

t in

com

mod

ities

to b

e us

ed in

ble

ndin

g flo

ur

ii.

Inve

ntor

y of

idle

pub

lic la

nd la

ckin

giii.

Fra

mew

ork

to le

ase

publ

ic la

nd to

priv

ate

sect

or la

ckin

giv

. Re

mov

e ta

xes

on im

porta

tion

of y

ello

w m

aize

for a

nim

al fe

eds

to re

duce

pre

ssur

e on

v.

Lack

of A

g. S

tatic

s po

licy

to g

uide

inve

stm

ent,

gene

ratio

n an

d sh

arin

g of

suc

h in

form

atio

nvi

. Th

e co

untry

lack

s a

resu

lts fr

amew

ork

for m

onito

ring

and

repo

rting

impa

cts

of g

over

nmen

t pro

gram

s/ p

roje

cts

vii.

Wea

k lin

kage

s be

twee

n re

sear

ch-e

xten

sion

-farm

ers

viii.

No e

xcep

tion

for d

irect

tend

erin

g to

dea

l with

out

brea

ks (K

enya

see

d/AD

C fa

rms

lost

a lo

t of s

eed

mai

ze d

ue to

this

)

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

77No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

Who

Tim

elin

es

4.N

atio

nal F

ood

and

Nut

ritio

n Se

curit

y Po

licy

(201

1)

Nat

iona

l Foo

d an

d N

utrit

ion

Secu

rity

Polic

y (2

011)

a)Fo

cus

on e

nhan

cing

fo

od a

nd n

utrit

ion

secu

rity,

in

form

atio

n m

anag

emen

t sy

stem

s an

d co

ordi

natio

n of

th

e ro

les

of v

ario

us m

inis

tries

an

d ag

enci

es to

ach

ieve

fo

od s

ecur

ity

a)C

hang

e op

erat

iona

l stra

tegi

es

for S

FR s

uch

that

ther

e is

no

mar

ket d

isto

rtion

MO

ALF&

I; C

ount

ies

Shor

t Ter

m

b)It

also

info

rms

impl

emen

tatio

n of

Arti

cle

43 o

f the

Con

stitu

tion

whi

ch

esta

blis

hes

Keny

ans’

righ

t to

be

free

from

hun

ger a

nd

to h

ave

adeq

uate

food

of

acce

ptab

le q

ualit

y

b)M

inim

um p

rice

cont

rol/

stab

ilizat

ion

can

be e

ffect

ivel

y im

plem

ente

d th

roug

h ca

sh

trans

fers

pro

gram

s (tr

easu

ry) n

ot

pric

e fix

ing

(MoA

LF&I

)

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

78

No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

Who

Tim

elin

es

Nat

iona

l Foo

d an

d N

utrit

ion

Secu

rity

Polic

y (2

011)

c)Ad

dres

s is

sues

of f

ood

stor

age

in th

e co

untry

and

St

rate

gic

Food

Res

erve

c)O

pera

tiona

lize

WRS

bill

2018

to

enc

oura

ge p

rivat

e se

ctor

in

vest

men

t in

stor

age/

hand

ling

of g

rain

Key

issu

es/c

halle

nges

i. SF

R m

echa

nism

s ha

ve a

lway

s le

d to

mar

ket d

isto

rtion

ii. N

o la

w to

sup

port/

regu

late

priv

ate

sect

or ro

le in

war

ehou

se re

ceip

t sys

tem

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

79No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

Who

Tim

elin

es

5.Th

e Bi

g 4

Agen

daFo

od S

ecur

ity a

nd N

utrit

ion

pilla

r in

the

Big

4 Ag

enda

fo

cus

ona)

Rede

sign

ing

of s

ubsi

dy

prog

ram

sa)

Prov

ide

ince

ntiv

e fo

r pr

ivat

e se

ctor

par

ticip

atio

n in

ag

ricul

tura

l val

ue c

hain

s; D

ata,

Pu

blic

goo

ds a

nd T

ax a

nd

regu

latio

n

MO

ALF&

I; C

ount

ies

Shor

t Ter

m

b)Be

tter e

xten

sion

ser

vice

s/

mar

ket a

cces

s fo

r SS-

farm

ers

b)In

crea

se fu

ndin

g to

agr

icul

ture

pa

rticu

larly

c)PP

P to

dea

l with

ch

alle

nges

of d

istri

butio

n an

d po

st-h

arve

st lo

sses

c)Re

sear

ch

d)Re

duce

targ

eted

taxa

tion

to p

ut id

le a

rabl

e la

nd to

use

d)Ex

tens

ion/

farm

er tr

aini

ng

e)Fa

cilit

ate

larg

e sc

ale

com

mer

cial

Ag.

di

vers

ifica

tion

to ir

rigat

ed

prod

uctio

n

e)M

arke

t acc

ess

& va

lue

addi

tion

f)Pro

tect

Ken

ya w

ater

tow

ers

f)Put

in p

lace

legi

slat

ion

to g

uide

in

put s

ubsi

dy p

rogr

ams

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

80No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

Who

Tim

elin

es

The

Big

4 Ag

enda

g)Pu

blis

h te

rms

and

cond

ition

s by

whi

ch

com

mer

cial

farm

ers

will

be

able

to le

ase

idle

agr

icul

tura

l la

nd o

wne

d by

gov

ernm

ent,

to ra

ise

prod

uctio

n of

st

rate

gic

crop

s (m

aize

)

g)M

ake

subs

idy

prog

ram

pa

ckag

e of

tech

nolo

gy b

undl

es

for e

nhan

ce im

pact

h)Ef

fect

ive

ferti

lizer

sub

sidy

de

liver

y m

echa

nism

s

Key

gaps

/cha

lleng

esi.

Cur

rent

sub

sidy

pro

gram

is la

rgel

y on

ferti

lizer

ii. U

ncoo

rdin

ated

par

alle

l sub

sidy

pro

gram

s (N

atio

nal V

s C

ount

y su

bsid

yiii.

Low

fund

ing

to a

gric

ultu

re e

xten

sion

bot

h at

nat

iona

l and

cou

nty

leve

liv

. E-V

ouch

er F

ertil

izer

Sub

sidy

Man

agem

ent S

yste

m w

as p

ilote

d in

201

6 bu

t not

yet

rolle

d ou

t tw

o ye

ars

dow

n th

e lin

ev.

Reg

ulat

ion

to g

uide

WRS

(WRS

, 201

8 Bi

ll) n

ot y

et o

pera

tiona

lized

to g

uide

priv

ate

sect

or in

vest

men

t in

stor

age

and

dist

ribut

ion

of ra

ins

vi. In

vent

ory

of th

e id

le g

over

nmen

t agr

ic. l

and

not a

vaila

ble

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

81No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

How

Who

Tim

elin

es

6.C

rops

Act

201

3

a)N

atio

nal&

cou

nty

gove

rnm

ent

colla

bora

tion

& co

oper

atio

n

Stre

ngth

en th

e co

llabo

rativ

e m

echa

nism

s on

mat

ters

ag

ricul

ture

& fo

od

secu

rity

Esta

blis

h th

e ru

les

of e

ngag

emen

t for

ef

ficie

ncy

thro

ugh

JASS

CO

M a

nd o

ther

join

t co

mm

ittee

s/ c

omm

issi

ons

MO

ALF&

I; In

ter-

Gov

ernm

enta

l Su

mm

it;

Cou

ncil

of

Gov

erno

rs; I

nter

-G

over

nmen

tal

Rela

tions

Te

chni

cal

Com

mitt

ee;

Cou

ntie

s;

AFA;

Nat

iona

l Bi

osaf

ety

Auth

ority

6-12

m

onth

s;

Imm

edia

te &

C

ontin

ous

b)Le

vies

/taxe

s (le

ss

10%

gat

e va

lue)

Impl

emen

t req

uire

d le

vy/

taxe

s to

avo

id d

oubl

e ta

xatio

n

Inst

itutio

n in

volv

ed to

co

nsul

t/col

labo

rate

MO

ALF&

I; AF

A; C

ount

ies;

N

atio

nal

Trea

sury

; KRA

6-12

m

onth

s;

Imm

edia

te/

cont

inou

s

c)C

omm

oditi

es F

und

& fa

rmer

ince

ntiv

esAd

vanc

e cr

edit

to fa

rmer

s; P

rice

stab

ilizat

ion

Dev

elop

rele

vant

re

gula

tions

MO

ALF&

I; AF

A;

Com

mod

ities

Fu

nd; N

atio

nal

Trea

sury

6-12

M

onth

s;

Imm

edia

te/

cont

inou

s

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

82No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

How

Who

Tim

elin

es

Cro

ps A

ct 2

013

d)G

row

ers

ince

ntiv

esC

redi

t fac

ilitie

s; f

arm

in

puts

& m

arke

ting

Inst

itutio

n in

ter-l

inka

ges

AFA;

Cou

ntie

s;

Gro

wer

s4-

12 m

onth

s

e)Re

gist

ratio

n of

sm

allh

olde

r gro

wer

sM

aint

ain

a co

mpr

ehen

sive

dat

abas

e of

sm

allh

olde

r gro

wer

s pe

r cou

nty

Gro

wer

s C

olla

bora

tion/

inst

itutio

nal l

inka

ges

Smal

lhol

der

Gro

wer

s;

Cou

ntie

s; A

FA

4-12

mon

ths

f)Sub

sidi

ary

Bodi

esEs

tabl

ishm

ent o

f su

bsid

iary

bod

ies

to

ensu

re fo

od s

ecur

ity;

valu

e ad

ditio

n; m

arke

ting

etc

Rese

arch

on

the

requ

ired

bodi

es to

be

esta

blis

hed

AFA;

MO

ALF&

I6-

12

Mon

ths;

Im

med

iate

/co

ntin

ous

g)La

ck o

f

Regu

latio

ns to

op

erat

iona

lize

mai

ze

sub-

sect

or

Dev

elop

men

t of

com

preh

ensi

ve

regu

latio

ns to

giv

e ef

fect

to

the

Act

Wid

e co

nsul

tatio

ns o

n ar

eas

of re

gula

tion

AFA;

MO

ALF&

I6-

12

Mon

ths;

Im

med

iate

/co

ntin

ous

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

83No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

How

Who

Tim

elin

es

7.Ag

ricul

ture

& F

ood

Auth

ority

Act

201

3

a)Re

gula

tion

of

crop

s (p

rodu

ctio

n;

proc

essi

ng; g

radi

ng;

mar

ketin

g; s

tora

ge;

war

ehou

sing

; co

llect

ion)

•Ef

fect

ive

and

effic

ient

re

gula

tion

of v

ario

us

aspe

cts

•Bu

y-Ke

nya

build

Ken

ya

polic

y

•Ad

optio

n of

the

best

pr

actic

es•

Impl

emen

t a q

uota

sy

stem

for M

illers

AFA;

Cou

ntie

s,

MO

ALF&

I, N

atio

nal

Trea

sury

, AFA

, C

ount

ies

6-12

mon

ths

6-12

mon

ths

b)D

atab

ase

on a

gric

ultu

ral

prod

uctio

n

•To

ens

ure

prop

er

reco

rds

•Pr

oper

reco

rds

to b

e ke

pt/m

aint

aine

dM

OAL

F&I;

Nat

iona

l Re

sear

ch

Inst

itutio

ns

6-12

m

onth

s;

imm

edia

te/

cont

inou

s

c)Re

gist

ratio

n of

pl

ayer

s (fa

rmer

s/st

akeh

olde

r or

gani

zatio

n et

c)

Iden

tifica

tion

of k

ey

play

ers

Prop

er re

cord

s ke

pt/

mai

ntai

ned

Trea

sury

; AFA

;6-

12

mon

ths;

im

med

iate

/co

ntin

ous

d)Re

sear

ch p

riorit

ies

Ensu

re e

ffici

ent d

ata/

rese

arch

obt

aine

d Fa

cilit

ate

prop

er p

lann

ing

Cou

ntie

s;

Rese

arch

In

stitu

tions

6-12

m

onth

s;

imm

edia

te/

cont

inou

s

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

84No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

How

Who

Tim

elin

es

e)Im

posi

tion

of

levi

es/ta

xes

Ensu

re e

ffici

ent f

undi

ng

of g

over

nmen

t ac

tiviti

es• A

void

dou

ble

taxa

tion/

levi

es to

redu

ce c

ost o

f pr

oduc

tion

• Ens

ure

sanc

tity

of

cont

ract

s is

pro

tect

ed

MO

ALF&

I; AF

A; C

ount

ies;

KA

LRO

; Re

sear

ch

Inst

itute

s (K

IPPR

A;

Tege

meo

; Moi

U

nive

rsity

; etc

)

6-12

m

onth

s;

imm

edia

te/

cont

inou

s

Agric

ultu

re &

Fo

od A

utho

rity

Act 2

013

f)Rul

es g

over

ning

fa

rmer

s ag

reem

ents

Dev

elop

men

t of

com

preh

ensi

ve ru

les

to p

rote

ct fa

rmer

s’

cont

ract

s

Wid

e co

nsul

tatio

ns o

n re

leva

nt re

gula

tions

to b

e de

velo

ped

MO

ALF&

I; AF

A;

Parli

amen

t; Fa

rmer

s’

Soci

etie

s

6-12

m

onth

s;

imm

edia

te/

cont

inou

s

g)N

o Re

gula

tions

to

oper

atio

naliz

e th

e Ac

t

Dev

elop

men

t of

com

preh

ensi

ve

regu

latio

ns to

giv

e ef

fect

to

the

Act

Wid

e co

nsul

tatio

ns o

n re

leva

nt re

gula

tions

to b

e de

velo

ped

6-12

m

onth

s;

imm

edia

te/

cont

inou

s

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

85No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

How

Who

Tim

elin

es

8.Ke

nya

Agric

ultu

ral a

nd L

ives

tock

Res

earc

h Ac

t 201

3

a)D

isse

min

atio

n of

rese

arch

on

mai

ze a

vaila

bilit

y,

unde

rsup

ply

& ov

ersu

pply

Con

tinuo

us v

iabl

e re

sear

ch o

n m

aize

av

aila

bilit

y; a

cces

sibi

lity

of th

e re

sear

ch

Info

rmat

ion

on th

e qu

antit

y of

mai

ze h

eld

by e

ach

farm

er a

nd

reco

rded

in th

e da

taba

se

Dev

elop

men

t of

com

preh

ensi

ve

regu

latio

ns to

giv

e ef

fect

to

the

Act;

MO

ALF&

I; AF

A; C

ount

ies;

KA

LRO

; Re

sear

ch

Inst

itute

s (K

IPPR

A;

Tege

meo

; Moi

U

nive

rsity

; etc

)

6-12

m

onth

s;

imm

edia

te/

cont

inou

s

Keny

a Ag

ricul

tura

l an

d Li

vest

ock

Res

earc

h Ac

t 20

13

b)Re

sear

ch o

n m

aize

(see

d va

riety

et

c) b

y th

e Re

sear

ch

Cou

ncil;

Res

earc

h on

mai

ze s

elf-

suffi

cien

t mai

ze

prod

uctio

n

Con

tinuo

us v

iabl

e re

sear

ch o

n m

aize

av

aila

bilit

y an

d en

surin

g ac

cess

ibilit

y of

the

rese

arch

Mai

nten

ance

of c

orre

ct

data

and

info

rmat

ion

on

mai

ze a

vaila

bilit

y;

Dev

elop

men

t of

com

preh

ensi

ve

regu

latio

ns to

giv

e ef

fect

to

the

Act;

Perio

dic

rese

arch

resu

lts

Scie

nce

Cou

ncil;

Sc

ient

ific

&Tec

hnic

al

Com

mitt

ee;

Rese

arch

In

stitu

te

Advi

sory

C

omm

ittee

s;

MO

ALF&

I; AF

A; C

ount

ies;

KA

LRO

; Re

sear

ch

Inst

itute

s (K

IPPR

A;

Tege

meo

; Moi

U

nive

rsity

; etc

)

6-12

m

onth

s;

imm

edia

te/

cont

inou

s

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

86No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

How

Who

Tim

elin

es

9.Ke

nya

Trad

e R

emed

ies

Act 2

017

pow

er to

impo

se

an a

nti-d

umpi

ng,

coun

terv

ailin

g an

d sa

fegu

ard

mea

sure

s,

inve

stig

atio

n,

eval

uatio

n an

d ad

judi

catio

n pr

oced

ures

Enha

nce

the

impl

emen

tatio

n of

the

prov

isio

ns b

y th

e Tr

ade

Rem

edie

s Ag

ency

in

orde

r to

impl

emen

t the

pr

ovis

ions

of t

he E

AC

Trea

ty a

nd P

roto

cols

and

th

e C

OM

ESA

Trea

ty a

nd

Prot

ocol

s

Enha

nce

inve

stig

atio

n in

to c

ases

of d

umpi

ng

and

impl

emen

t the

co

unte

rmea

sure

s (c

ount

erva

iling

and

safe

guar

d m

easu

res)

Dev

elop

com

preh

ensi

ve

regu

latio

ns to

giv

e ef

fect

to

the

prov

isio

n of

the

Act

To re

ceiv

e re

port

from

the

Trad

e Re

med

ies

Agen

cy

on th

e m

easu

res

it ha

s ta

ken

on th

e cu

rrent

m

aize

cris

is in

the

coun

try

MO

ALF&

I; Tr

ade

Rem

edie

s Ag

ency

; Ken

ya

Reve

nue

Auth

ority

; Th

e N

atio

nal

Trea

sury

Imm

edia

te/

cont

inuo

us;

6-12

mon

ths

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

87No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

How

Who

Tim

elin

es

10.

Nat

iona

l Cer

eals

and

Pro

duce

Boa

rd (N

CPB

) Act

To re

gula

te

and

cont

rol t

he

mar

ketin

g an

d pr

oces

sing

of m

aize

, an

d sc

hedu

led

agric

ultu

ral p

rodu

ce

Rest

ruct

urin

g to

en

hanc

e its

effi

cien

cy in

de

term

inat

ion

of m

aize

sc

arci

ty in

the

coun

try

and

quan

titie

s an

d qu

ality

of m

aize

to b

e im

porte

d

Mak

e N

CPB

in

cons

ulta

tion

with

SFR

th

e so

le im

porte

r of f

ood

rese

rve

(mai

ze) i

n ca

se

of s

carc

ity in

ord

er to

st

ream

line

impo

rts a

nd to

st

abiliz

e pr

ices

Mak

e N

CPB

the

sole

im

porte

r of f

ertil

izer

as

prov

ided

for u

nder

the

Publ

ic P

rocu

rem

ent

and

Asse

ts D

ispo

sal

Act 2

015

to e

nabl

e th

e G

over

nmen

t reg

ulat

e pr

ices

Repe

al o

f the

cur

rent

Ac

t in

orde

r to

enha

nce

NC

PB’s

ope

ratio

n an

d ef

ficie

ncy

Dev

elop

men

t of

com

preh

ensi

ve

regu

latio

ns to

defi

ne it

s in

stitu

tiona

l des

ign

MO

ALF&

I; N

CPB

; Sen

ate;

Pa

rliam

ent

Imm

edia

te/

cont

inuo

us;

6-12

mon

ths

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

88No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

How

Who

Tim

elin

es

11.

Stra

tegi

c Fo

od R

eser

ve T

rust

Fun

d R

egul

atio

ns 2

015

unde

r the

Pub

lic F

inan

ce M

anag

emen

t Act

201

2a)

ToEs

tabl

ish

the

Stra

tegi

c Fo

od

Rese

rve

Trus

t Fun

d to

SFR

stru

ctur

es s

houl

d be

en

hanc

ed fo

r effi

cien

cy

& ef

fect

iven

ess

Enac

tmen

t of a

co

mpr

ehen

sive

SFR

Ac

t and

com

preh

ensi

ve

regu

latio

ns to

giv

e ef

fect

to

the

Act

SFR;

MO

ALF&

I; Pa

rliam

ent;

Sena

te; N

atio

nal

Trea

sury

etc

6-12

m

onth

s;

imm

edia

te/

cont

inou

s

b)To

Prov

ide

Stra

tegi

c Fo

od

Rese

rve

in p

hysi

cal

stoc

k an

d ca

sh

equi

vale

nt

Esta

blis

hmen

t of a

n au

tono

mou

s an

d in

depe

nden

t ent

ity (s

tate

co

rpor

atio

n) to

enh

ance

its

per

form

ance

Enac

tmen

t of a

co

mpr

ehen

sive

SFR

Act a

nd c

ompr

ehen

sive

re

gula

tions

to g

ive

effe

ct

to th

e Ac

t

SFR;

MO

ALF&

I; Pa

rliam

ent;

Sena

te; N

atio

nal

Trea

sury

etc

6-12

m

onth

s;

imm

edia

te/

cont

inou

s

c)To

stab

ilize

the

food

sup

ply

and

pric

es in

the

coun

try

Inst

itutio

nal c

olla

bora

tion

(Min

istry

of A

gric

ultu

re;

EAC

stru

ctur

es a

nd o

ther

re

leva

nt g

over

nmen

t m

inis

try &

inst

itutio

ns)

Col

lect

ade

quat

e an

d co

mpr

ehen

sive

dat

a an

d re

sear

ch in

ord

er to

in

form

mai

ze s

uppl

y

MO

ALF&

I; M

inis

try o

f Tr

ade;

NC

PB;

SFR

6-12

mon

ths

imm

edia

te/

cont

inuo

us

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

89No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

How

Who

Tim

elin

es

12.

Publ

ic P

rivat

e Pa

rtner

ship

Act

201

5

a)Pr

ovid

e fo

r the

pa

rtici

patio

n of

th

e pr

ivat

e se

ctor

in

the:

fina

ncin

g,

cons

truct

ion,

de

velo

pmen

t, op

erat

ion,

or

mai

nten

ance

of

infra

stru

ctur

e or

dev

elop

men

t pr

ojec

ts o

f the

G

over

nmen

t th

roug

h-co

nces

sion

or

oth

er c

ontra

ctua

l ar

rang

emen

ts

NC

PB to

util

ize

the

prov

isio

ns o

f the

Act

if it

in

tend

s to

par

tner

with

th

e pr

ivat

e pa

rty in

the

impo

rtatio

n of

mai

ze a

nd/

or fe

rtiliz

er

NC

PB a

nd M

OAL

F&I

to li

aise

with

the

PPP

Com

mitt

ee o

f the

Nat

iona

l Tr

easu

ry

PPP

Com

mitt

ee;

NC

PB;

MO

ALF&

I

4-12

m

onth

s;

imm

edia

te/

cont

inou

s

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

90No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

How

Who

Tim

elin

es

b)To

est

ablis

h th

e in

stitu

tions

to

regu

late

, mon

itor

and

supe

rvis

e th

e im

plem

enta

tion

of

proj

ect a

gree

men

ts

on in

frast

ruct

ure

or d

evel

opm

ent

proj

ects

Inst

itutio

nal c

olla

bora

tion

in p

roje

ct im

plem

enta

tion

Form

atio

n of

a S

tand

ing

Com

mitt

ee w

ith

repr

esen

tatio

n fro

m

inst

itutio

ns;

PPP

Com

mitt

ee;

NC

PB;

MO

ALF&

I

4-12

m

onth

s;

imm

edia

te/

cont

inuo

us

Publ

ic P

rivat

e Pa

rtner

ship

Act

20

15

c)To

est

ablis

h th

e PP

P C

omm

ittee

Inst

itutio

nal c

olla

bora

tion

PPP

Uni

t of t

he N

atio

nal

Trea

sury

to c

olla

bora

te

and

supp

ort o

ther

G

over

nmen

t ins

titut

ions

in

the

mai

ze in

dust

ry

PPP

Com

mitt

ee;

Nat

iona

l Tr

easu

ry; N

CPB

; SF

R M

OAL

F&I

6-12

M

onth

s;

imm

edia

te/

cont

inuo

us

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

91No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

How

Who

Tim

elin

es

13.

Agric

ultu

ral F

inan

ce C

orpo

ratio

n Ac

t

a)Pr

ovis

ion

of lo

ans

to fa

rmer

s

b)Pr

ovis

ion

of lo

an

to a

gric

ultu

ral c

o-op

erat

ive

soci

etie

s et

c

To re

stru

ctur

e AF

C

in o

rder

to e

nsur

e de

velo

pmen

t of

agric

ultu

re &

its

indu

strie

s

Revi

ew o

f the

cur

rent

Act

MO

ALF&

I; AF

C B

oard

of

Dire

ctor

s;

The

Nat

iona

l Tr

easu

ry

6-12

M

onth

s;

imm

edia

te/

cont

inuo

us

14.

Agric

ultu

ral D

evel

opm

ent C

orpo

ratio

n Ac

ta)

Prom

ote

prod

uctio

n of

ag

ricul

tura

l inp

uts

(eg

hybr

id m

aize

se

eds)

b)Pr

ovis

ion

of c

redi

t/lo

ans

for f

arm

ers

To re

stru

ctur

e AF

C

in o

rder

to e

nsur

e de

velo

pmen

t of

agric

ultu

re &

its

indu

strie

s to

ens

ure

high

yi

elds

To fa

cilit

ate

farm

ers

in

prod

uctio

n of

mai

ze

Repe

al o

f the

cur

rent

Act

Esta

blis

h ea

ch fa

rmer

s cr

edit

need

s an

d pr

ovis

ion

of th

e sa

me

ADC

; AFA

; M

OAL

F&I;

Farm

ers;

Fa

rmer

sSo

ciet

ies

etc

6-12

m

onth

s;

imm

edia

te/

cont

inuo

us

6-12

m

onth

s;

imm

edia

te/

cont

inou

s

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

92No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

How

Who

Tim

elin

es

15.

Co-

oper

ativ

e So

ciet

ies

Act N

o. 1

2 of

199

7 &

Coo

pera

tive

Soci

etie

s R

ules

199

7a)

Prov

ides

for t

he

esta

blis

hmen

t of t

he

coop

erat

ive

soci

etie

s b)

Func

tions

/obj

ects

of

the

co-o

pera

tive

soci

etie

s to

pro

mot

e of

the

wel

fare

and

ec

onom

ic in

tere

sts

of it

’s m

embe

rs.

c)Its

pro

visi

ons

bind

s al

l mem

bers

of t

he

coop

erat

ive

soci

etie

s in

clud

ing

farm

ers

coop

erat

ive

soci

etie

s

a)Re

view

the

Act a

nd th

e Ru

les

in o

rder

to a

lign

it w

ith th

e cu

rrent

situ

atio

n in

the

mai

ze in

dust

ry

b)Fa

rmer

s to

join

and

/or

form

coo

pera

tives

in

ord

er to

enj

oy th

e be

nefit

s th

at a

ccru

e fro

m

the

law

.

Min

istry

to s

pear

head

th

e re

view

of t

he A

cts

and

regu

latio

ns th

roug

h co

llabo

ratio

n of

var

ious

ac

tors

MO

AFL&

I; C

oope

rativ

es

Soci

etie

s; K

FA;

6-12

m

onth

s;

imm

edia

te/

cont

inuo

us

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

93No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

How

Who

Tim

elin

es

16.

Con

sum

er P

rote

ctio

n Ac

t 201

2

Ensu

re fo

od s

afet

y an

d vi

able

con

sum

er

pric

es

Prop

er e

nfor

cem

ent o

f its

pro

visi

ons

in o

rder

to

ens

ure

that

mai

ze

supp

lied

(loca

lly/

inte

rnat

iona

lly) i

s fit

for

hum

an c

onsu

mpt

ion

Fair

and

affo

rdab

le m

aize

flo

ur p

rices

to c

onsu

mer

s

Ensu

re m

aize

and

mai

ze

flour

pric

e st

abilit

y

Ensu

re m

aize

saf

ety

free

from

toxi

c su

bsta

nces

su

ch a

s afl

atox

in

MO

ALF&

I; M

inis

try o

f H

ealth

; Ken

ya

Bure

au o

f St

anda

rds

(KeB

S); E

AC;

Con

sum

er

Prot

ectio

n O

rgan

izat

ions

et

c.

6-12

m

onth

s;

Imm

edia

te &

C

ontin

ous

17.

Com

petit

ion

Act 2

010

To p

rom

ote

and

safe

guar

d na

tiona

l ec

onom

y an

d pr

otec

t co

nsum

ers

from

un

fair

& m

isle

adin

g m

arke

t con

duct

Ensu

re fa

ir tra

de a

nd

prom

ote

fair

mar

ket

prac

tices

Impl

emen

t thi

s Ac

t to

geth

er w

ith th

e EA

C

Com

petit

ion

legi

slat

ion

in

orde

r to

prev

ent m

arke

t di

stor

tion

(pric

es/s

uppl

y)

Com

petit

ion

Auth

ority

; AFA

; M

OAL

F&I

6-12

M

onth

s;

Imm

edia

te/

cont

inuo

us

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

94No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

How

Who

Tim

elin

es

18Se

ed &

Pla

nt V

arie

ties

Act &

Ken

ya P

lant

Hea

lth In

spec

tora

te A

ct 2

012

Regu

late

s tra

nsac

tions

in

seed

s/te

stin

g/ce

rtific

atio

n of

see

ds

and

to c

ontro

l the

im

porta

tion

of s

eeds

, et

c.

Har

mon

ize

the

oper

atio

ns o

f the

in

stitu

tions

est

ablis

hed

unde

r the

two

Acts

(S

eeds

and

Pla

nt

Varie

ties

Act a

nd th

e Ke

nya

Plan

t Hea

lth

Insp

ecto

rate

Ser

vice

Ac

t, 20

11 e

spec

ially

th

e Ke

nya

Plan

t Hea

lth

Insp

ecto

rate

Ser

vice

) in

orde

r to

ensu

re tr

adin

g in

go

od q

ualit

y se

eds;

Col

labo

ratio

n of

thes

e in

stitu

tions

with

the

Keny

a Se

eds

Com

pany

Ensu

re c

olla

bora

tion

betw

een

KEPH

IS; K

enya

Se

eds

Com

pany

; NC

PB

and

othe

r rel

evan

t in

stitu

tions

for e

ffect

ive

impl

emen

tatio

n of

the

prov

isio

ns o

f the

two

Acts

MO

ALF&

I; KE

PHIS

; NC

PB;

Keny

a Se

eds

Com

pany

6-12

M

onth

s/Im

med

iate

/co

ntin

uous

The

Ferti

lizer

and

Ani

mal

Fo

odst

uffs

Boa

rd to

be

the

sole

regu

lato

r of

ferti

lizer

man

ufac

turin

g/im

porta

tion

c. T

he A

ct to

be

furth

er

amen

ded

in o

rder

to

rem

ove

the

anim

al

food

stuf

fs u

nder

the

man

date

of t

he B

oard

so

as to

ens

ure

auto

nom

y

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

95No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

How

Who

Tim

elin

es

19.

Ferti

lizer

& A

nim

al F

oods

tuffs

Act

& it

s 20

15 A

men

dmen

t Act

Regu

late

s th

e im

porta

tion/

man

ufac

ture

/sal

e of

ag

ricul

tura

l fer

tiliz

ers

etc.

The

Amen

dmen

t Act

20

15 e

stab

lishe

s a

Ferti

lizer

and

Ani

mal

Fo

odst

uffs

Boa

rd

to re

gula

te th

e fe

rtiliz

ers

and

anim

al

food

stuf

fs in

dust

ry

The

Act c

onta

ins

dual

fu

nctio

ns re

latin

g to

fe

rtiliz

ers

and

anim

al

feed

s th

eref

ore

ther

e is

ne

ed to

sep

arat

e th

e tw

o fu

nctio

ns

Fully

impl

emen

tatio

n fo

th

e Ac

t in

orde

r to

curb

a

lot o

f fer

tiliz

er im

porta

tion

and

enco

urag

e lo

cal

man

ufac

turin

g of

fe

rtiliz

ers

whi

ch w

ill re

duce

the

cost

s of

pro

duct

ion

and

supp

ort t

he “B

ig F

our

Agen

da” o

n fo

od a

nd

nutri

tiona

l sec

urity

and

m

anuf

actu

ring

sect

ors

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

96

No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

How

Who

Tim

elin

es

The

Ferti

lizer

and

Ani

mal

Fo

odst

uffs

Boa

rd to

be

the

sole

regu

lato

rof

ferti

lizer

m

anuf

actu

ring/

impo

rtatio

n

c. T

he A

ct to

be

furth

er

amen

ded

in o

rder

to

rem

ove

the

anim

alfo

odst

uffs

und

er th

e m

anda

te o

f the

Boa

rd s

o as

to e

nsur

e au

tono

my

20.

War

ehou

se R

ecei

pt S

yste

m B

ill 20

18

To fa

cilit

ate

the

esta

blis

hmen

t, m

aint

enan

ce a

nd

deve

lopm

ent o

f th

e W

areh

ouse

Re

ceip

t Sys

tem

fo

r agr

icul

tura

l co

mm

oditi

es in

Ke

nya

The

Bill

shou

ld b

e en

acte

d in

to L

aw fo

r ef

fect

ive

impl

emen

tatio

n of

its

prov

isio

ns

Fast

-trac

k th

e en

actm

ent

of th

e Bi

ll in

to a

n Ac

t of

Par

liam

ent t

oget

her

with

its

com

preh

ensi

ve

Regu

latio

ns to

ens

ure

stru

ctur

ed tr

adin

g in

ag

ricul

tura

l com

mod

ities

, es

peci

ally

mai

ze

MO

ALF&

I; Pa

rliam

ent

6-12

M

onth

s;

Imm

edia

te/

cont

inuo

us

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

97

No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

How

Who

Tim

elin

es

21.

Afric

an U

nion

Fra

mew

ork:

The

Map

uto

Dec

lara

tion

2003

Allo

catio

n of

10%

na

tiona

l bud

get t

o ag

ricul

ture

Prom

ote

grow

th a

nd

agric

ultu

ral d

evel

opm

ent

of A

frica

n ag

ricul

ture

(e

.g. f

ood

prod

uctio

n an

d su

pply

; agr

icul

tura

l re

sear

ch a

nd la

nd/w

ater

m

anag

emen

t; gr

owin

g;

mar

ket a

cces

s et

c)

Ensu

re a

lloca

tion

of th

e 10

% n

atio

nal a

nd c

ount

y bu

dget

s to

Agr

icul

ture

, es

peci

ally

mai

ze

Impl

emen

t the

EAC

Pr

otoc

ols

in li

ne w

ith th

e Ke

nyan

law

s in

ord

er to

pr

omot

e fa

ir tra

de &

to

prot

ect d

omes

tic m

arke

t

MO

ALF&

I; M

inis

try o

f Tr

ade;

Min

istry

of

Eas

t Afri

can

Com

mun

ity;

Keny

a Tr

ade

Rem

edie

s Ag

ency

; KRA

6-12

m

onth

s;

Imm

edia

te &

co

ntin

uous

22.

The

Trea

ty E

stab

lishi

ng th

e Ea

st A

frica

n C

omm

unity

(EAC

Tre

aty)

To p

rom

ote

East

Af

rican

Com

mun

ity’s

fre

e m

arke

t

Prom

ote/

ensu

re fr

ee

trade

with

in th

e EA

C

tradi

ng b

loc

Ensu

re e

ffect

ive

impl

emen

tatio

n of

th

e pr

ovis

ion

on

mai

ze p

rodu

ctio

n an

d m

arke

ting

MO

A; M

inis

try

of E

ast A

frica

n C

omm

unity

; Ke

nya

Trad

e Re

med

ies

Agen

cy

4-12

mon

ths

Task

For

ce fo

r Maiz

e Ind

ustry

Stak

ehold

ers

98

No.

Act

/Fra

mew

ork

Issu

e/Pr

ovis

ion

Rec

omm

enda

tion

How

Who

Tim

elin

es

23.

The

East

Afri

can

Com

mun

ity C

omm

on M

arke

t Pro

toco

l (EA

C-C

MP)

Prom

ote

free

mov

emen

t of g

oods

be

twee

n Pa

rtner

St

ates

Ensu

re p

rote

ctio

n of

do

mes

tic m

arke

t thr

ough

pr

even

tion

of o

ver-

impo

rtatio

n; d

umpi

ng

and

mar

ket d

isto

rtion

;

Esta

blis

h th

e qu

antit

ies

of m

aize

nee

ded

in th

e co

untry

Impl

emen

tatio

n of

the

safe

guar

d m

easu

res

in

orde

r to

prot

ect d

omes

tic

indu

stry

/mar

ket

Impl

emen

t the

pro

visi

ons

of th

e Ke

nya

Trad

e Re

med

ies

Act a

nd

Regu

latio

ns

MO

ALF&

I; M

inis

try o

f Ea

st A

frica

n C

omm

unity

;

Keny

a Bu

reau

of

Sta

tistic

s;

Keny

a Re

venu

e Au

thor

ity (K

RA);

Keny

a Tr

ade

Rem

edie

s Ag

ency

6-12

M

onth

s;

Imm

edia

te &

co

ntin

uous

20.

Prot

ocol

on

the

Esta

blis

hmen

t of t

he E

ast A

frica

n C

omm

unity

Cus

tom

s U

nion

(EAC

-CU

)

Prom

otio

n of

intra

-re

gion

al tr

ade

in

good

s th

roug

h el

imin

atio

n of

inte

rnal

ta

riffs

Impo

se s

afeg

uard

m

easu

res

whe

n th

ere

is s

udde

n su

rge

of a

pr

oduc

t im

porte

d in

to a

Ke

nya

henc

e ca

usin

g/th

reat

enin

g to

cau

se

serio

us in

jury

to d

omes

tic

prod

ucer

s

Esta

blis

h ef

fect

ive

man

agem

ent o

f dat

a an

d s

tatis

tics

to m

onito

r th

e qu

antit

y o

f gra

ins

impo

rted

thro

ugh

trans

pare

nt re

porti

ng

proc

esse

s

MO

ALF&

I; EA

C M

inis

try;

KRA;

SFR

; EAC

C

omm

ittee

on

Tra

de

Rem

edie

s;

Keny

a Tr

ade

Rem

edie

s Ag

ency

6-12

mon

ths

Imm

edia

te/

cont

inuo

us


[3975

SPECIAL ISSUE

THE KENYA GAZETTE Published by Authority of the Republic of Kenya

(Registered as a Newspaper at the G.P.O.)

Vol. CXX—No. 138 NAIROBI, 9th November, 2018 Price Sh. 60 GAZETTE NOTICE NO. 11710

TASK FORCE OF MAIZE INDUSTRY STAKEHOLDERS TO MAKE RECOMMENDATIONS FOR THE DEVELOPMENT OF

THE MAIZE INDUSTRY IN KENYA

APPOINTMENT

IT IS notified for the general information of the public that the Cabinet Secretary for Agriculture, Livestock, Fisheries and Irrigation has appointed a Task Force to make recommendations for the development of the maize industry in Kenya which shall comprise of—

Name Institution Jackson Mandago Council of Governors Patrick Khaemba Council of Governors Wycliffe Wafula Wangamati Council of Governors Noah Wekesa (Dr.) Strategic Food Reserve Margaret Kamar (Prof.) Senate Ferdinand Wanyonyi National Assembly Mrs. Ann Onyango Ministry of Agriculture, Livestock,

Fisheries and Irrigation Johnson Irungu (Dr.) Ministry of Agriculture, Livestock,

Fisheries and Irrigation Gerald Masila East African Grain Council Milton Ayieko (Dr.) Tegemeo Institute Stephanus P. Kruger Cereal Growers Association Nick Hutchinson Cereal Millers Association Albin Sang National Cereals and Produce Board Peter Kuguru United Grain Millers Association Ms. Felista Nyachuru Office of the Attorney-General

1. The Terms of Reference—

(a) review the policy, legal, regulatory and institutional framework of the maize industry and make appropriate recommendations;

(b) review the current and emerging challenges facing the maize industry and make appropriate recommendations;

(c) review the maize industry value chain including research and import structures, and make appropriate recommendations on addressing the prevailing and anticipated issues of concern in entire maize production and consumption value chain for the short term, medium term and long term;

(d) review and assess the cost of maize production in Kenya, and undertake a comparative analysis of the competitiveness of

Kenyan maize in the East African Community, the Common Market for Eastern and Southern Africa and internationally, and make appropriate recommendations on enhancing the competitiveness of local farmers to protect them from cheap imports taking into account the existing trade treaties and protocols;

(e) review and make recommendations on mechanisms of enhancing maize production and productivity to meet local demand for, and trade in, maize, in order to achieve food and nutrition security;

(f) review the challenge of high post-harvest loss of maize in Kenya and make recommendations on the measures necessary to reduce post-harvest loss of maize;

(g) analyse the roles of different stakeholders, and make recommendations on how stakeholders can collaborate among themselves and with National and County governments to develop the maize industry;

(h) review and make recommendations on appropriate mechanisms for determining maize purchase price for the Strategic Food Reserve, taking into account market forces and the needs of the Kenyan consumer;

(i) review and make recommendations on appropriate mechanisms for streamlining the maize market structure; and

(j) develop and submit a comprehensive final report with recommendations to be implemented in the short term, medium term and long term.

2. In performance of its functions, the Task Force shall—

(a) regulate its own procedure;

(b) hold as many meetings as shall be considered necessary for the discharge of its functions, at such venues and at such times as it may determine;

(c) commence its activities by developing and submitting to the Cabinet Secretary for approval a detailed work plan and budget;

(d) call for, and have review, any relevant documents or information in the possession, custody or control of any relevant institution or person;

(e) regularly update the Cabinet Secretary in writing on the progress being made by the Task Force;

Annex 2: Maize Task Force Gazette Notices







Annex 3: Maize Cost of Production Determination Template

Enterprise/ Name…………………………. Area Under Maize (Acres) ……… Category (S/M/L)

County………………………………… Sub County ………………………… Date ………………

Category Item Unit of Measure

Unit Price (Kshs)

Total Cost (Kshs)

Output Production per Acre (90 Kg Bags)

Direct Inputs Planting Fertilizer

Top dressing Fertilizer

Seed 10 KgsStorage ChemicalsGunny Bags Sisal TwineInsecticides Herbicides

Farm Operation/Machinery (hiring)

Land Preparation 1St 1st Ploughing 2nd Ploughing1st Harrowing2nd Harrowing PlantingFoliar appplicationSpraying (herbicides)Spraying (pestcides/fungicides)Harvesting HaulingHarvesting HaulingShelling Drying


Category Item Unit of Measure

Unit Price (Kshs)

Total Cost (Kshs)

Labour 1st Ploughing 2nd Ploughing 1st Harrowing2nd Harrowing Planting (seed and fertilizer application)Manure application Top dressing Weeding Foliar application Spraying (herbicides)Spraying (pestcides/fungicides)Harvesting Stookingde-huskingHauling Shelling Drying Dusting BaggingFumigation

Other Cost Land RentSecurity Working capital

Marketing Cost Transport TOTAL COST OF PRODUCTION PER ACREMAIZE PRICE PER BAG

Factors to Consider in Determination of Maize Price Per Bag1. The established average Cost of production per 90 Kg Bag in the period under

review2. The Prevailing domestic and Regional Maize prices the producer and

Consumer interests3. The markup of percentage (%) above the average Cost of Production per

Bag to cater for profit and other Miscellaneous Production and post harvest expenses


Documents

REPORT BY THE TASKFORCE OF MAIZE INDUSTRY STAKEHOLDERS