Government’s focus on farming is a step in the right direction

Globalisation is part of our modern condition. Wherever you live, globalisation probably affects you. Your economy, your entertainment, even your food, all are deeply influenced by the globalised culture. Thus, a quick meal grabbed in a mall looks eerily similar, it does not matter whether it’s ordered in Nairobi, New York, or Naples.

One of the spill-over effects of this globalised economy is the development of cash crops. These are crops grown for profit and not for their nutritional value.

As trade became cheaper and easier, farmers the world over have started to produce with export in mind. As the general agricultural production became more productive and efficient because of technological advances, enough food for the local population was produced while some farmers turned to cash crops, which provided the local economy with hard international currency vital for its development, and investment in crucial national resources and infrastructure.

Kenya is blessed with a fertile soil, ample rain and driven people. This is the perfect groundwork to develop a cash crop economy. On top of growing lush avocado trees which can produce up to 300 fruits per year, our geographic location, situated prominently in the “coffee belt”, provides us with the potential to make a lot of money from simply providing millennials with their preferred food.

Yet, in order to reap in the big profits, we can’t just hope that a farmer understands the opportunity and takes the risk to invest in growing a new crop.

We have a government which understands the role it has to play to develop the agricultural sector.

The Big Four, President Uhuru Kenyatta’s four main areas of government action, include the state’s goal of attaining food security. President Kenyatta is also pushing for the improvement of the cash crop industry.

In the past year, the President set up a Sh3 billion cherry advance revolving fund, while also having a forensic audit of over 500 cooperative societies across the country to process billions of shillings in debts.

But most importantly was the structural reform which provided for the coffee supply chain to be now partly regulated by the Capital Markets Authority (CMA), which licenses the auctions and brokers selling coffee on behalf of farmers.

The exchange in Nairobi is regulated by the Agriculture and Food Authority. Farmers are now assured to receive a bigger part of the pie, and make a fair profit.

The New Kenya Planters’ Cooperative Union has already received Sh2.7 billion from the government, which it will soon start to distribute to smallholder coffee farmers all across the country.

In order to prevent corruption, it will have to abide by a tough and strict set of regulations, as instructed by the Public Finance Management Act. Another proof that in Kenyatta’s government, corruption is slowly reducing.   

Many farmers can’t wait for this last hurdle to be taken – which is crucial to ensure the money ends up in the right places, and not in the pockets of greedy officials. It is easy to see why: The conditions offered through the new fund are fantastic, and will allow any farmer who is determined to work hard for a better future to succeed.

Instead of the usual interest rate of 13 per cent he would have to pay at the bank, a smallholder coffee farmer will be able to receive a loan to invest in his business at only three per cent! And the security the farmer has to provide is his crop, which prevents a debt overload or to put up his family’s house as collateral.

These are simple steps by the government, yet it is precisely because of their simplicity that they will bear fruit. Kenya has the potential to make a lot of cash from its crops, and President Kenyatta is making sure these profits are reaped by those working hardest – our farmers.