Trans Nzoia, Kenya – Farmers in Kenya's breadbasket region of Trans Nzoia are voicing strong concerns over the government's outstanding debt of Sh800 million to the Kenya Seed Company (KSC) for subsidized seeds. The delayed payment, pending since 2013, is casting a shadow over the timely delivery of crucial maize seeds, potentially affecting production and food security in the region.

KSC Managing Director Sammy Chepsiror recently addressed the issue during a company-sponsored golf tournament at Kitale Club, attended by over 120 golfers. He mentioned recent discussions with Treasury officials, expressing optimism that this year's Sh1 billion bill would be settled promptly, with the older Sh800 million debt factored into future payment plans.

"The treasury promised to settle this year’s Sh1 billion within the shortest period," Chepsiror stated. He also assured farmers that KSC maintains sufficient seed stock for maize, sunflower, wheat, and horticultural crops. Furthermore, he cautioned against unscrupulous traders dealing in counterfeit fertilizers.

However, the delay in settling the debt is causing significant anxiety among farmers. Maize seed prices were capped at Sh210 for a 1kg packet, Sh420 for a 2kg packet, Sh2,100 for a 10kg packet, and Sh5,250 for a 25kg packet under the subsidy program.

Fredrick Rono, a maize farmer from Kiminini sub-county, expressed his unease about the uncertainty surrounding the availability of subsidized maize seed during the planting season. "If the government doesn’t pay KSC on time, the company won’t have the capacity to produce enough seeds in future. This will force us to buy seeds at higher prices or settle for uncertified seeds, which will affect our yields,” Rono explained.

Echoing these sentiments, John Komen, a farmer from Kapsitwet, highlighted the direct impact on small-scale farmers. "The pending bill from 2013 and the newly announced Sh1 billion subsidy will put KSC under severe financial constraints if the debt is not paid on time. Most of us depend on subsidised seeds to keep our farming businesses afloat. If KSC struggles, it means we will struggle too,” Komen noted.

Economist Dr. Edward Wasike warned of potential maize seed shortages and inflation if the debt issue is not promptly resolved. "If the government does not pay KSC over Sh1.8 billion on time, the ripple effect will be felt across the economy in the future as farmers will struggle to access quality seeds," he said, adding that reduced maize production could lead to increased food prices and greater reliance on maize imports, straining Kenya’s foreign exchange reserves.

Kwanza MP Ferdinand Wanyonyi, a member of the National Assembly Agriculture Committee, revealed that Parliament has approved a supplementary budget to subsidize maize seeds, with funds soon to be disbursed to KSC. "The National Assembly approved a supplementary budget to subsidise maize seed prices. The allocated funds will soon be wired to Kenya Seed Company to facilitate affordable seed distribution to farmers,” Wanyonyi stated.

Agriculture Principal Secretary (PS) Dr. Paul Rono addressed farmers' concerns during a visit to the National Cereals and Produce Board (NCPB) Kitale depot last week. He assured both farmers and KSC that the government is actively working to resolve the payment issue. "The government recognises the importance of KSC in ensuring food security. While we acknowledge the pending payments, we are actively engaging with the Treasury to secure funds for settlement. Our goal is to prevent any disruption in seed production and distribution,” Dr. Rono said.

Dr. Rono also reaffirmed the government's commitment to the subsidy program, stating, "The Sh1 billion subsidy announced this year will be disbursed as soon as the necessary financial arrangements are finalised.”