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Nairobi, September 30, 2009

President Mwai Kibaki accompanied by Agriculture Minister William Ruto tours the Ruiru 11 coffee farm during the official opening ceremony of the 2009 Nairobi International Trade Fair at the Jamhuri Park showground, Nairobi.

President Mwai Kibaki has today affirmed that the Government shall maintain a duty free regime for importation of maize in the country to bridge an estimated shortfall of 10 million bags expected during this year’s harvesting season.

President Kibaki noted that the prolonged drought experienced in the country coupled by high fuel prices and the global financial crisis had not only caused food scarcity but also complicated the nation’s food security status.

The President, however, assured Kenyans that the Government had taken concrete measures, both short and long term, to address the food situation as well as to cushion wananchi from adverse effects of the current drought.

The President said, “In addition to subsiding fertilizer, we have also reduced the price of seeds by one Shilling and fifty cent per kg. For the first time since we started experiencing drought, we have now allocated some one billion Shillings for the purchase and distribution of seeds free of charge to farmers throughout the country. Furthermore, we have allocated over 500 million Shillings to buy livestock from pastoralists as a way of assisting them to cope with prolonged drought.”

“Regarding the high food prices, for example, my Government has allowed duty free importation of maize while other cereals attract very low duty. This has led to increased inflow of cereals into the country, hence cushioning us from the adverse effects of the shortfall in supply,” said the President.

The Head of State made the remarks at Jamhuri Park Showground during the official opening of the 2009 Agricultural Society of Kenya Nairobi International Trade Fair.

During the occasion the President urged farmers across the country to transform their agricultural practices from low-input subsistence farming to commercial, technology driven agriculture.

President Kibaki said that farmers must strive to become producers of processed and high-value finished products unlike the current situation where they produce raw primary commodities.

He said, “We should transform ourselves from being mere producers of primary commodities to producers of processed and high value finished products. To achieve this transformation, we need to increase the application of improved seeds, animal breeds, feeds and fertilizers. Equally important, we need innovative research as well as efficient and reliable, extension, regulatory and marketing institutions.”

With regard to agricultural inputs, the President noted that the Government had taken over more than 50 per cent of the fertilizer market leading to a significant reduction in the price of the commodity as well as purchase and provision of free planting seeds to local farmers.

The Head of State who lauded the relevance of Show’s theme, “Driving Agribusiness in attaining Food Sufficiency and Vision Twenty Thirty” assured that the Government has allocated enough financial resources to ensure that enough water was distributed in drought affected areas.

To revamp and harness the irrigation potential in the country, President Kibaki noted that 2 billion shillings had so far been allocated to put 35,000 acres of land under food production and promised that more resources would be allocated until over one million acres were irrigated.

Said the President, “As we seek to expand the land under irrigation, we are aware that most of our farmers will continue to depend on rain-fed agriculture.

My Government is committed to providing farmers with appropriate agricultural extension services that are required to boost agricultural productivity. This season the agricultural sector ministries have embarked on food production campaign through field days and barazas throughout the country. I urge farmers throughout the country to heed the advice of extension officers and take full advantage of the forecasted rains in the coming season.”

The Head of State commended the achievements of the irrigation efforts which he noted that had boosted rice and wheat production and filled the existing consumption gaps in the country.

With regard to horticultural farming, the President commended local farmers for their dynamism leading to production of varied and high quality products that compete well at the international market.

“The increase in production is attributed to dynamic and responsive farmers who have been able to produce a wide range of high quality products that meet the requirements of various international markets. I commend horticultural farmers and urge them to maintain high standards for the industry to remain competitive in the world market,” remarked the President.

President Kibaki further lauded the impressive performance recorded by both the tea and coffee industries.

With regard to tea the total, volume produced last year was valued at 62 billion shillings which was a 45 per cent growth in comparison to last year.

In the coffee sector, the President assured that the Government had instituted various reforms to revive the sector and commended the increased earnings from 8.8 billion shillings in 2007 to 9.3 billions shillings in 2008.

The Head of State noted that the establishment of the Coffee Development Fund to provide affordable credit to farmers was an important mileage in the implementation of reforms in the sector adding that over 61,000 farmers had received credit amounting to 840 million shillings.

He urged farmers to take advantage of the various interventions instituted to make coffee growing a profitable venture and also to take advantage of the prevailing better world market prices.

With regard to the sugar industry, President Kibaki assured farmers in the sector that measures aimed at streamlining the sector had been instituted which include reorganizing the procedures of lending the Sugar Development Fund and reduction of interest rates for loans from 10 to 5 per cent.

Noting that the prospects of the industry remain positive despite various challenges especially with regard to improving efficiency to compete globally, the Head of State noted that the Government was committed to maintain passable roads for easy transportation of goods and people.

The President assured, “The Government will continue to implement further measures to realize domestic sugar self-sufficiency and to make the industry more competitive globally and regionally. Indeed, the privatization programme for the five publicly owned sugar factories is on course and will be completed within the next eight months.”

President further urged farmers to increase production of crops, livestock and fish farming in order to take advantage of agricultural produce markets which have been earmarked for construction in all constituencies in the country to ensure that every Kenyan receive a fair share of their national cake.

He commended the Agricultural Society of Kenya (A.S.K), exhibitors and well wishers for making the Trade Fair a success.

Earlier the President toured the various winning stands.

President Kibaki also flagged off trucks carrying free seeds to launch the one billion free seed distribution campaign to 100 districts in Eastern, Central and Coast Provinces which have been adversely affected by the current drought.

Agriculture Minister William Ruto supported the President’s clarion call to Kenyans to work hard and contribute positively to the Country’s economy while reducing empty talk.

The Minister announced government plans to harmonize extension providers countrywide so as to improve on the quality of information to farmers with the aim of transforming agricultural farming into a profitable commercial venture.

Mr. Ruto at the same time said the Government was developing a policy paper for presentation to development partners during the forthcoming Copenhagen meeting to persuade industrialized nations to support climate change mitigation in Third World countries.

Livestock Development Minister Dr Mohamed Kuti clarified that over 70 per cent of the livestock bought from farmers in drought stricken areas under the off take programme and portrayed by the media as dead were moribund and had recovered after feeding.

Dr Kuti assured Kenyans that the government had provided 1 million vials of Rift valley Fever vaccination in readiness for the anticipated El Nino rains.

Also in attendance were Ministers, the Chief of General Staff, Service Commanders, senior Government officials and wananchi from all walks of life.