County governments may soon be required to cushion farmers against market losses by paying minimum guaranteed returns for agricultural produce facing unfavorable market conditions.
This follows the tabling of the Agriculture Produce Minimum Guaranteed Returns Bill before the Senate, a proposal that seeks to integrate guaranteed minimum payments into the county budget planning cycle.
For years, farmers have operated without assurance of fair prices for their produce, despite agriculture being described as the backbone of Kenya’s economy. The Bill, sponsored by Nominated Senator Veronica Maina, aims to address this long-standing challenge by ensuring farmers earn a minimum income even when market prices fall.
If enacted, the legislation will establish County Minimum Guarantee Committees in each of the 47 counties. The committees will identify dominant crops and livestock eligible for the minimum guaranteed returns and determine the average market price and comprehensive cost of production for each product.
Under the proposal, the minimum guaranteed return will be equivalent to 20 percent of the difference between the average market price and the comprehensive cost of production. Payments will be made directly to farmers’ accounts.
According to Senator Maina, county governments receive funds for agricultural development, yet there is no clear legal framework guiding how these resources should directly benefit farmers.
The Bill is currently under Senate consideration and, if approved, will be forwarded to the National Assembly for further debate and possible adoption.
