Kenya likely to re-introduce commodity pricing controls

Kenya mulls over a proposal to re-introduce commodity price controls to protect farmers from exploitation. 

Speaking during the official flagging off and handover of project vehicles to Small Scale Irrigation and value addition project to Counties, Agriculture Cabinet Secretary Peter Munya said preliminary reports from the Mombasa tea auction indicate setting of the minimum tea prices at the auction has raised tea prices with plans to extend the measures to other agricultural products.

Kenya abolished commodity controls in the mid 1990s as the country embarked on liberalizing its market as one of the conditions set by the development partners then.

However the government is likely to re-introduce commodity price controls to curb exploitation by brokers.

So far, price controls have improved tea prices at the weekly Tea auction.

Munya has warned that the government is contemplating setting up a pricing mechanism to eliminate unscrupulous middlemen.

Munya is also calling on the judiciary to expedite rulings on KTDA cases to allow full implementation of the 2020 tea regulations.

To improve irrigation at the counties, the African Development Bank has extended a 3.8 billion shillings loan facility to the government to roll out the small irrigation and value addition programme in 11 counties.

The targeted counties will benefit from the construction of feeder roads to help farmers access markets for their produce.



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