How farmers benefit greatly from Kenya's faltering agriculture

Investigations of the Nation in Nairobi and at three main border points – Isebania, Namanga and Loitokitok – have revealed a thriving illegal trade in agricultural products, which hampers the farmers' will to earn a living.

Although the products of the East African Community (EAC) member states are not taxed, according to the trade bloc protocol, traders at border points – eager to profit from this flourishing activity – s & # 39, with the police and customs officers, to avoid the necessary checks.

Kenyan traders imported more than 77,500 tonnes of corn from their neighbors between January and February 2018, according to data from the Regional Agricultural Trade Intelligence Network (Ratin), reporting Ugandan and Tanzanian farmers some 3.1 billion tonnes of corn. cash checks.

One of the checkboxes at the border point is the certificate of origin, which guarantees that only products from EAC member states enjoy an exemption from import duties. But with illegal trade, one can never be sure, with information that some of the maize that arrives in Kenya actually comes from Malawi and South Africa.

Corn, sugar, rice, millet, potatoes, beans, onions, fruits and eggs are among the most popular products.

Much of Kenya's agricultural production is not competitive due to poor soils, high input costs and the politicization of crops such as maize, where the market benefits well connected individuals at the expense of farmers.

Decades of cultivation, often with a crop and a type of fertilizer, have practically killed agriculture, even in areas that were once very productive.

Entering into the taxation of agricultural inputs and machinery as well as ideal conditions for irrigation and unholy mixing, Kenya's agriculture is one of the least profitable in the world. With a production of 1.6 tons per hectare, maize production is well below that of Uganda, which is six tons and the best world production of 12 tons.

The reintroduction of 16% VAT on fertilizers and crop protection and animal protection products is expected to continue to weigh on the fortunes of Kenyan farmers.

"Kenya has introduced taxes on agricultural inputs, something that no other country in the world has done yet. In fact, other countries are subsidizing agricultural inputs to encourage production, "notes Gerald Masila, executive director of the East Africa Grain Council.

Kenyan farmers, he says, will not compete fairly with Ugandan farmers where machinery and diesel are much cheaper.

The potato is the second staple after maize, but according to industry experts, 80% of the products consumed in Nairobi come from southern Tanzania. And while traveling up to 1,500 km, it is found on the market Marikiti in Nairobi, cheaper than the variety produced in Ol Kalou, for example, less than 100 km from the city.

Yesterday, a kilo of Kenyan potatoes cost 100 shillings, while the Tanzanian harvest cost 100 shillings.

Onions and tomatoes are also popular. "We usually sell Tanzanian onions much faster than local or Chinese varieties because they are cheaper," Kiarie told Kiki. A 40-kg net is equivalent to 3,200 shillings, while the Kenyan variety costs 3,600 shillings.

A Nation team that visited the very active market this week was asked to order the stock in advance.

Kenya has opened single border posts (OSBPs) under the East African Community Protocol Protocol to Facilitate the Movement of Goods and People.

And while the goods are supposed to pbad after being inspected, most of them arrive after traders have paid bribes to customs officials or by panya (unofficial) roads.

The latest addition to the growing list of smuggled products from Tanzania is fish, while Kenya is home to much of Lake Victoria's waters. Tilapia on the Kenyan side costs between 400 shillings and 600 shillings per piece, depending on size, while similar fish from Tanzanian tilapia cost as little as 200 shillings.

To officially import agricultural products, traders must obtain a license and submit to a strict customs clearance at the border point.

The process begins with customs clearance at Tanzanian customs offices. On the Kenyan side, the goods are inspected by the Kenya Bureau of Standards to ensure they meet sanitary standards. The goods then pbad through the Kenya Revenue Authority, which determines the import duties to be paid if they come from outside the EAC. All of these services are grouped under one roof at OSBP.

But traders say it's a tedious process that takes several hours, resulting in huge losses as their products go bad.

To carry their goods without control or to pay smaller bribes, traders use many tips. A popular way is to buy products and distribute them among several boda bodas that route them on unofficial routes.

"We are coordinating their move over the phone while waiting for them from the other side," an active trader in the area has revealed for nearly 10 years.

Police collect bribes from cyclists instead of dealing directly with traders. Once safely on the other side, the goods are loaded into vans or trucks.

The merchants of their business are so protective that the attempts of our team to discreetly take pictures on one of the panya roads in Isebania have been thwarted. The merchants brutalized our photographer and confiscated his camera. It took police intervention to protect him further, but not before telling him to delete all the photos.

The effect of the influx of cheap imports has a negative impact on Kenyan farmers. Mrs. Susan Kong'ato of Uasin Gishu County said that she had invested 2 million shillans to cultivate 35 acres in 2018 and harvested 960 bags. "But the high production costs and the lack of markets have forced me to reduce to 20 acres," she says.

Kenya can not meet its demand for other important foods. Last year, the demand for wheat rose to two billion tonnes while the country produced only 165,000 tonnes. Demand for rice stands at 706,000 tons against a local production of 81,000 tons.

"I have never dealt with Kenyan products. I make good profits with Tanzanian eggs and rice. If they are banned, I will definitely shut down my business, "a Kenyan trader told Isebania.

The trader, who has also previously handled maize, says the situation is the same in Busia where maize, eggs and sugar easily enter Kenya.

Kenya lifted the ban on Ugandan poultry products following bilateral talks between Presidents Kenyatta and Yoweri Museveni. This means that Kenyan farmers can expect increased competition in an unequal market.

But it is not only agricultural products that are smuggled across the border; beer and other drinks flow freely because they are much cheaper in Tanzania. In Kenya, for example, a bottle of half a liter of Tusker blond beer costs 200 shillings per joint, while on the other side of the border, Kilimanjaro Lager will cost you only 70 shillings.

The fact that there is little or no control at the border means that everything is fine and that all kinds of imports are coming in. It is feared that trade, especially corn, will be fueled by well-connected individuals who import from countries like Mexico when opening the window.

Our investigations revealed that between 10 and 15 trucks loaded with corn were leaving Arusha each day for Namanga.

There are four other border points on the Kenya-Tanzania border: Isebania, Ilasit-Loitokitok, Taveta and Lunga Lunga.

Some of the traders we interviewed criticized the customs office at the border for conducting the illegal trade with their means.

KRA officials have never bothered to public education or speed up their checks, it is said. "Instead, what is happening routinely is a confiscation or a process that takes up to 24 hours for your goods to be cleared," lamented one trader.

Our attempts to give KRA a chance to comment failed because our messages and emails were unanswered.

But it is not only in East Africa that Kenya imports its agricultural products. Nearly half of the garlic consumed in the country now comes from China.

Tim Njagi, a development economist at the Tegemeo Institute, believes that agriculture in Kenya is not economical because of its land policies that favor speculation over production.

"We need to encourage consolidation and discourage subdivision," he says.

Although Tanzanian products are imported freely, it has become extremely difficult to send Kenyan products to its southern neighbor because of strict rules. In January, Tanzania imposed 25% duties on Kenyan confectionery.

Yet Kenya can not replicate hostility because it is a signatory to the rules of the World Trade Organization, which requires countries to open their markets to foreign players in accordance with current bilateral trade protocols.

"The EAC laws, for example, require that no tax be imposed on the goods of the region at any of their borders," Hamadi Boga, chief secretary of agriculture, told the Nation. .

He said his department was working to reduce production costs so that local farmers could compete in the region.

Other reports from Zephania Ubwani, Aggrey Omboki and Anita Chepkoech.