Ladies and Gentlemen,

I am pleased to preside over the official opening of this year’s Nairobi International Trade Fair.

This annual event provides our farmers, traders, and service providers with an opportunity to exchange information of crucial importance to the growth of our national economy. I urge all participants to make practical use of the knowledge that this event avails in order for us to increase our national productivity at all fronts.

I note that the theme of this year’s show is “Driving Agribusiness in attaining food sufficiency and Vision Twenty Thirty”. This theme is most appropriate at this time when we grapple with the challenge of food insecurity in the country as a result of unfavorable weather conditions over the last three years. The situation has been further aggravated by the global financial and economic melt-down. The theme is also in tandem with our agricultural sector vision of transforming farming in Kenya into a profitable commercial activity, employing millions of Kenyans at all stages of agricultural value chain. I urge all Kenyans to embrace this approach to agriculture so as to enable the country register its full potential economically for the well being of all our citizens. As we are all aware, Kenya’s economy is predominantly agro-based. It is therefore important to build on this sector as a crucial pillar in our effort to achieve our vision of a prosperous middle-income economy by twenty thirty.

In this regard, I am pleased to note that line ministries have jointly developed the Agricultural Sector Development Strategy to enable the sector contribute to the achievement of Vision twenty thirty. I urge farmers to transform their agricultural practices from low-input subsistence agriculture to commercial, technology-driven agriculture. As a nation, let us raise our status in the global economy. 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. I expect the sector ministries in their new Agricultural Development Sector Strategy to embrace these key ingredients of agricultural reform.

Ladies and Gentlemen,

We are all aware that our country has experienced challenges arising from prolonged drought, high fuel prices as well as the global financial crisis. These challenges have caused food scarcity and overall food insecurity as well as high prices of agricultural inputs. I am, however, encouraged to note that we have stepped up appropriate measures to address these challenges.

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.

With respect to the high prices of agricultural inputs, the Government is implementing a fertilizer strategy that is starting with bulk procurement and low level subsidy. Over the last one year, the Government has taken over more than 50 per cent of the fertilizer market by importing over 241,000 metric tones worth 9.7 billion Shillings. The net effect has been a significant reduction in the price of fertilizer by more than 150 per cent.

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 800 million Shillings for the purchase and distribution of seeds free of charge to farmers who are on famine relief 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.

In addition to these efforts, we are aware of the need to provide water in areas affected by the drought. I wish to assure the public that we have allocated enough financial resources to ensure there is enough water in affected areas.

Moreover, in order to increase food security in the medium and long term, my Government has taken deliberate measures to expand irrigated agriculture with a view to harnessing our irrigation potential. To start with, we have allocated 2 billion Shillings to rehabilitate all our irrigation projects and bring into production an additional 35,000 acres immediately. We will continue to allocate more resources so that we can put one million acres under irrigation in the next five years. 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.

Ladies and Gentlemen,

Turning to the performance of specific sub-sectors, I note that we shall experience a shortfall of about 10 million bags of maize this year. Consequently, we shall continue to maintain a duty free regime so that we can source for maize outside the country to bridge this gap. Besides maize, wheat and rice are also increasingly becoming staple foods for our people. Although we produce less than 50 per cent of our rice and wheat requirements, I am pleased to note that with the expansion of irrigated agriculture our rice production is increasing.

While the cereals production declined last year, I am happy to note that production in the horticultural sector has improved. 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.

Ladies and Gentlemen,

Tea is the second leading foreign exchange earner after horticulture. Tea exports recorded impressive performance. The Total volume of tea produced last year was valued at 62 billion Shillings up from 43 billion Shillings traded in 2007, an increase of about 45 per cent. Despite this impressive performance, the tea industry is faced with challenges of unpredictable weather pattern, escalating cost of production arising from high cost of fertilizer and electricity, as well as multiple taxation and volatility of international tea prices in the global market. My Government is undertaking policy, legal and institutional reforms in the tea industry geared towards promoting global competitiveness. Such reforms include tea value addition, product diversification, market development, training, as well as incentives to encourage investments in the industry.

With respect to coffee, I am happy to note that the industry is recovering after years of poor performance. Export earnings have increased from 8.8 billion Shillings in 2007 to 9.3 billion Shillings in 2008 representing a 5.4 per cent increase. My Government has instituted many reforms to revive the coffee industry. These reforms include the establishment of the Coffee Development Fund to provide accessible and affordable credit to the coffee sub-sector. To date the Fund has disbursed a total of 840 million Shillings to over 61, 000 farmers as credit under the advances and coffee rehabilitation loan packages. total of 705 million Shillings was lent to over 60,000 smallholder farmers. In this Financial Year, the fund intends to launch three more products to address other levels in the coffee market value chain. The products include Coffee processing loan, Coffee establishment loan and Coffee financing loan. I urge all coffee growers to take advantage of these interventions and the prevailing favourable world market prices to produce more coffee and earn more incomes.

Sugarcane is another important cash crop for this country. My Government has implemented far reaching reforms and investments to revitalize the industry. These measures include streamlining the lending procedures of the Sugar Development Fund and reduction of interest rates for the Sugar Development Fund Loans from 10 per cent to 5 per cent. 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. Let me reiterate that the prospects of the industry remain positive in spite of the formidable challenge of improving efficiency to compete internationally, especially once the COMESA Safeguard Measures lapse in February twenty twelve.

Ladies and Gentlemen,

I am aware that farmers are facing challenges in transport as well as limited market outlets for their produce in rural and urban areas. This has been a great hindrance to commercialization of agricultural activities. I want to assure our farmers that my Government is already addressing these issues. Regarding transport, the Government has since 2004 financed road maintenance through the Roads Maintenance Levy Fund totaling about 72 billion Shillings.

Regarding outlets for agricultural produce, my Government will construct 180 Agricultural Produce markets in selected constituencies countrywide in the current Financial Year. I call upon farmers to increase their productivity especially in crop, livestock and fish farming. Let all farmers and business people take advantage of improved infrastructure, credit, and modern markets to improve their profitability and expand employment. This way every Kenyan can have a share of the national cake in the true sense of the word.

In conclusion, I wish to commend the Agricultural Society of Kenya, all exhibitors and all those who contributed towards making this International Trade Fair a success.

With these remarks, it is now my pleasure to declare the 2009 Nairobi International Trade Fair officially open.

Thank you and God bless you all