Kenya allocates 1 billion shillings to purchase local rice before allowing imports

Kenya plans to allocate 1 billion shillings to the Kenya National Trading Corporation (KNTC) to purchase locally produced rice before permitting new imports, Vice President Kithure Kindiki announced on Friday, September 18, during a visit to Mwea in Kirinyaga County.

According to Kithure Kindiki, this initiative aims to enable the KNTC to first absorb the harvests from Mwea and other rice-growing regions of the country as the marketing campaign intensifies. The government seeks to prevent the influx of imported rice from negatively impacting the prices paid to Kenyan producers.

The KNTC, a state-owned enterprise under the Ministry of Investments, Trade and Industry, acts as the government’s procurement agent. Its mandate includes stabilizing prices of essential goods, supporting agricultural markets, and maintaining stocks to balance supply and demand.

This announcement comes as producers in Mwea had requested the settlement of 210 million shillings owed for 25,760 bags of rice already delivered to the KNTC at the end of August. The Mwea Rice Farmers Cooperative explained that payment delays were affecting the purchase of inputs and household expenses for farmers.

The Vice President indicated that purchases funded by the announced allocation should also contribute to national food reserves. The priority given to domestic harvests must be applied before the opening of new imports, as purchases for the next campaign are set to begin later this year.