NAIROBI, Kenya — The government has released Sh200 million to purchase rice directly from farmers through their Savings and Credit Cooperative Organisations (SACCOs), in a move aimed at stabilising farm-gate prices and guaranteeing timely payments to growers.
The Kenya National Trading Corporation (KNTC) is implementing the programme, which has already seen Sh120 million disbursed, according to Managing Director Lucy Anagwe.
Anagwe said the funds are readily available and assured farmers that payments will be made immediately once rice is delivered and meets quality standards.
“We have received a Sh200 million rice grant and have utilised Sh120 million so far. Farmers should be assured that payment will be made immediately after delivery and quality verification,” she said.
As part of the intervention, the government has fixed the buying price of rice paddy at Sh90 per kilogram, offering relief to growers amid concerns over fluctuating market prices and delayed payments.
The Agriculture and Food Authority (AFA) said the arrangement will also benefit millers, who can deliver rice paddy to SACCOs and receive payment within 30 days.
AFA Director General Bruno Linyiru said national institutions will absorb all available produce to prevent losses at the farm level.
“We are assuring farmers that all produce will be taken up by national institutions. No farmer should be left with unsold rice,” Linyiru said.
In Mwea, Kenya’s largest rice-growing region, farmers have welcomed the move.
The Mwea Rice Growers Multipurpose Cooperative Society (MRGM) expects total production to hit 1.6 million bags this year, each weighing 100 kilograms.
MRGM Managing Director Anthony Waweru said the cooperative currently holds more than 40,000 bags of Pishori rice and described KNTC’s commitment as critical in avoiding payment delays.
“We are expecting to harvest close to 100,000 bags this season, but this will depend on KNTC’s continued commitment to buy our rice,” Waweru said.
Last year, similar government-backed purchases helped stabilise the rice market in Mwea and ensured farmers were paid on time, a scenario growers hope will be replicated this season.
