Govt rules out plan to sell NCPB assets

 

Cabinet Secretary Ministry of Agriculture Felix Koskei (L) flanked by PS Dr. Romano Koome (R) during a press briefing at Kilimo House on June 10, 2013. Mr Koskei said the board would remain a government institution and the consultants have clear instructions to see how the board can be streamlined to improve on service delivery. 

By DENNIS ODUNGA dodunga@ke.nationmedia.com
Posted  Sunday, July 28  2013 at  12:33

 

The National Cereals and Produce Board (NCPB) assets will not be sold off or its mandate interfered with, a cabinet secretary has said.

Agriculture Cabinet Secretary, Mr Felix Koskei has allayed fears that a team of consultants moving round the board’s depots were after privatizing it, due to poor performance.

Mr Koskei said the board would remain a government institution and the consultants have clear instructions to see how the board can be streamlined to improve on service delivery.

“The issue is not privatization of NCPB. It’s about how better can you can be served. So don’t worry. It will continue buying your maize and bringing you fertilisers if you continue relying on the government for the farm inputs,” he told farmers in Eldoret.

He spoke amid ongoing squabbles over payment of compensation to a company whose contract was irregularly cancelled.

The cabinet secretary said plans were underway to strengthen other institutions like Agricultural Finance Corporation (AFC) to operate like other commercial banks in the market and offer over the counter services at low interest rates.

“AFC should be able to accept deposits and continue offering loans for agricultural purposes at an interest rate of less than 10 per cent as opposed to 25 per cent that many other banks ask for. High interest rates discourage farmers because that translates to losses,” Mr Koskei said.

He further said the lending institutions should work on a plan that incorporates an insurance cover for loans taken for agriculture to mitigate against effects of climate change that has seen some farmers incur heavy losses yet they have loans to service.

He revealed that he had ordered the Kenya seed company to ensure seeds were available within a distance of 10 kilometres in order for farmers to access quality seeds.

Prof Paul Ndalut, a lecturer at the University of Eldoret said many soils in many parts of the North Rift and Western were acidic, something that is to blame for reduced yields over the years.

“Unfortunately, farmers are not aware that increased usage of fertilisers particularly DAP has greatly contributed to reduced number of bags harvested from our farms. Some are reluctant to switch for a while to other crops or use alternative fertilisers,” said Prof Ndalut.