Page 8 - AIK Guide 2019-20 Edition
P. 8

Note from
                                                    The Publishers





                                            On the backdrop of UN’s sustainable development goals 2030, in
                                            which the primal resolve was the eradication of poverty and hunger,
                                            H.  E  President  Uhuru  Kenyatta  articulated  the  expansion  of  food
                                            production and supply as part of the National Government big four
                                            agenda for the interim five years. This initiative draws support from
                                            the AGRA, FAO and AU endeavours in food security that has seen the
                                            Government and sector stakeholders commit over USD 600million
                                            in the next 10years.


                                            The magnitude of this undertaking will require immense resources,
         expertise and co-ordination across all arms of government both national and county, private sector and
         international partners. Already, there are a number of Bills’ ranging from land use and leasing, soil liming,
         warehouse receipt system, fisheries management and food security awaiting enactment to create the
         legal framework for the Big Four agenda to thrive. Subsequently, the government plans to place an
         additional 700,000 acres of land under maize, potato, rice, cotton, aquaculture and feed production
         through PPP programme to enhance large scale food production.

         However, current macro-economic upheavals are set to negatively impact gains in the sector in the
         short-term. The 16% levy imposed on agricultural pest control products and 8% on petroleum products
         in the 2018/19 budget will not only significantly increase the cost of production but will also render
         Kenyan farm produce uncompetitive in the regional and global market. The knock-on effect of a 16%
         VAT along the value-chain from inputs to final processing means the actual cost of taxes is in the region
         of 56% to 60%. This situation is likely to increase dependency on food imports as well as increase
         counterfeit pesticides in the market. Seldom do you find such an approach deployed in European or
         Asian countries as a measure to bridge tax deficit.

         Whereas there seems to be a mountain of challenges facing the industry, the bigger picture has a more
         positive outlook. Government has allocated more resources to the agriculture docket with a focus on
         promoting irrigation as opposed to depending on rain-fed agriculture, similarly it has allocated Ksh.
         300M to crop insurance to stimulate the uptake of agriculture insurance as a risk mitigation measure
         and a further Ksh 4.3B on fertilizer subsidy through an on-going farmer registration programme. These
         commitments are a merit of measure, borne of consultative dialogue and a myriad of  conferences with
         stakeholders and industry experts.

         Karibu.
         Masara Kinara
         Publisher
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          6                                                          Agriculture in Kenya Guide - Infomation Booklet & Directory
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