By Yoga David
The Ksh 30 Million Rice Milling plant bought by the County Government of Kisumu is now set to start operations after the County signed a strategic lease agreement by two partners.
In a landmark move that would help revitalize rice farming in Kisumu, the County Government signed a tripartite agreement with the National Irrigation Authority (NIA) and the privately owned Upland Crop Company to operate the Mill, a move that has excited farmers.
The signing of the agreement was held at the National Irrigation Authority (NIA) headquarters at Irrigation House, Nairobi early this week. The County Executive Committee Member (CECM) for Agriculture, Irrigation, Livestock and Fisheries, Kenneth Onyango, signed on behalf of Governor Prof. Anyang Nyong’o.
The National Irrigation Authority (NIA), was represented by Chairman Charles Muasya, while the Upland Crop Company, a seasoned private investor in the milling business in the country, was represented by Chairman and veteran Kisumu businessman, Mr Sunil Shah.
The lease agreement is set for operationalization of the state of art rice mill in Ahero, Nyando Sub County. The mill with a processing capacity of 2.5 metric tons per hour, translates to an output of 60 tons of milled rice per day, offering a ready, competitive market for small and medium scale rice farmers in the greater Western Kenya irrigation schemes.
In an interview at his 11th floor office at Prosperity House, CECM Onyango reflected on the long journey that began with Governor Nyong’o’s visit to the Ahero Irrigation scheme following heavy hailstorms related crop losses, five years ago.
“The idea of installing a rice mill in Ahero began when the governor visited the Ahero irrigation scheme at a time when farmers had suffered significant losses due to hailstorms.” said Hon. Onyango
He added: “During discussions with the then Chairperson of the National Irrigation Authority, it was agreed that a partnership between the County Government and NIA was necessary. There had been a mill before, but it had become obsolete.”
With the new arrangement, Upland Crop Limited will manage and operate the mill as a private venture, injecting capital, experience and efficiency into what was once a dormant facility.
“It’s been two years since the mill was installed, and as I’ve mentioned, the delay has largely been due to the bureaucratic nature of the PPP process. Nevertheless, we’re pleased that we can now move forward. Upland Crops Limited came on board through an expression of interest, and they bring extensive milling expertise.” Hon. Onyango added.
Hon. Onyango detailed how the Public Private Partnerships (PPP), though delayed by bureaucracy, marked a turning point for rice farmers who for years have been selling paddy rice to Ugandan traders at low prices.
“Now, farmers will enjoy value addition, then the price will go up. Time must also come when you want to see rice produced from Kisumu County on the shelves and in supermarkets across the country.” He said.
According to CECM Onyango, the impact of the mill will go far beyond just processing rice. Kisumu county expects to generate substantial revenue, Ksh200 per metric ton milled and the creation of jobs across the value chain.
Farmers will also benefit from contract farming arrangements, access to fertilizers, herbicides and mechanization support, as well as income from byproducts such as rice husks and bran mixed with sunflower which can be used to produce poultry and fish feed.
The rice farming acreage has expanded from 15,000 in 2017 to over 19,000 acres. CECM Onyango said this was brought about as a result of the intervention by the county government through expansion of community-based irrigation schemes.
According to Onyango, the project aligns with the national government’s Bottom-Up Economic Transformation Agenda (BETA). Which prioritize local agricultural productivity to reduce reliance on imports.
“When you look at the BETA agenda, agriculture is a function carried out at the county level, as it is essentially devolved. This means there must be a strong collaboration between the county and the national government. It’s important to remember that the national government aims to reduce foreign exchange spent on imports,” said Onyango.
Other infrastructure upgrades to be done by the county government of Kisumu are plans to solarize Ahero’s pumping station with support from the Hungarian government, lining the irrigation canals through The Japan International Cooperation Agency (JICA) supported projects. All aimed at maximizing water efficiency and reducing production cost.
Similar models are being extended to fish farming, dairy and horticulture. The county has partnered with Aquarech and Equity Bank to roll out cage fish farming and give three cages, having a capacity of 60,000 to women, youth and men.
Partnership with Aquaculture Business Development Programme (ABDP), to install 15 cages having a capacity of 30,000 each along the beaches of Lake Victoria. This is to replenish the dwindling fish stock in the natural waters, because of the illegal fishing activities.
In dairy, the county is working with FAO to develop the Kenya Dairy Development Center (KDDC) into a breeding and multiplication centre, using artificial insemination to gradually improve livestock breeds for higher milk and beef yield.
As we wrapped the interview, CECM Onyanga had the following message to share with farmers and stakeholders about the county’s long term commitment to agricultural transformation.
“First of all, if you look at the governor’s manifesto, agriculture is central to it, particularly when he frequently highlights food security as a priority for the county. For far too long, we’ve been importing the food we consume from our neighbors.” he stated
He continued by saying “I want to appeal to the people of Kisumu County to embrace agriculture not just as a subsistence activity, but as a commercial venture. Let’s view agriculture as a means to strengthen our financial base.”
Said the County Minister: “For those with the means to invest, I encourage you to do so, as food sustainability and security are vital to every household. If we can ensure food security at the household level, collectively, we will achieve food security.It”