Farmers to Earn KSh 500m as Govt Mops up Excess Rice in Local Market

• Rice farming in Kenya, especially in Kirinyaga county, has helped support the lives of millions of farmers
• Farmers usually sell the local rice at a modest price, money that is normally used to supplement their incomes
• However, there has been excess importation of rice in Kenya, a move that has resulted in prices dropping due to excess supply, pushing the government to buy the surplus rice in the market

Bonface Kanyamwaya, a journalist at TUKO.co.ke, has over 10 years of experience in finance, economics, business, markets, and aviation, offering insights into Kenyan and global trends.

The government has mopped up excess rice from Mwea farmers in Kirinyaga county worth KSh 500 million.

The rice, whose volume measures 5,000 metric tonnes, has been bought by the government to help support the livelihoods of 8,500 farmers from Kirinyaga and neighbouring counties.

Did Kenyan government buy excess rice?

The rice, which has been bought by the state from Mwea Rice Growers Multipurpose Cooperative Society, will see growers receive their money in the next 30 days after delivery.

"The Ministry of Agriculture and Livestock Development has successfully addressed concerns raised by farmers under the Mwea Irrigation Scheme regarding the impact of rice importation on the sale of locally produced rice."

To protect the livelihood of over 8,500 rice farmers from Kirinyaga and neighbouring counties, Kenya National Trading Corporation will mop up 5,000 metric tonnes of locally grown rice, valued at KSh 500 million," said Agriculture Food Authority director-general Bruno Linyiru on Friday, May 30, in a statement.

Linyiru said that Kenya produced 191,000 metric tonnes of milled rice in the 2024/25 season.

However, this volume is still not enough as it can only last two months because the monthly requirement is about 100,000 metric tonnes.

He reiterated that since January, only 94,000 metric tonnes of rice have been imported.

"This shortfall, therefore, necessitates importation to supplement local supply of the third most consumed staple cereal after maize and wheat," he said.

Going forward, in order to protect local farmers, the government will reduce rice imports by 50% through the expansion of irrigation schemes and increasing the area under production.

The state will also introduce high-yield rice varieties and promote upland rice farming, a move that will empower more farmers, increase production and productivity, and enhance food security.

AFA to tame unscrupulous traders

But, as much as local farmers supported the government’s plan to allow controlled rice importation in Kenya, they expressed concern over unethical practices by some retailers packaging imported rice as local brands.

The Agriculture Food Authority (AFA) pledged a firm crackdown on such deceptive practices in consultation with KEBS to protect both farmers and consumers.

Did Kenyan government subsidise maize?

In other news, Agriculture Cabinet Secretary Mutahi Kagwe on Monday, May 26, announced a subsidy for maize to curb rising prices in the market.

The prices of unga in Kenya have been on the rise following a spike in maize prices to about KSh 5,400 per 90 kg bag in May.

A 2 kg packet of unga retails at between KSh 160 and KSh 175, depending on the brand, in Kenyan supermarkets.

Proofreading by Asher Omondi, copy editor at TUKO.co.ke.

Source: TUKO.co.ke