By Hope Barbra
In one of the historic moves to cushion maize farmers and ensure adequate returns on investment, the County Government of Murang’a has entered into a Memorandum of Understanding (MoU) with Capwell Industries to purchase maize directly from farmers.
The MoU places the cost of maize at Sh3,500 per 90kg bag, a move envisaged to improve farmers’ earnings, as they previously sold their produce to brokers at Sh2,200 per bag.
Murang’a County has been aggressively boosting maize production through the Inua Mkulima initiative, targeting over 150,000 farmers with subsidised high-yield seeds and fertiliser to enhance food security and commercialisation.
Under the partnership, Capwell will purchase 3,500 metric tonnes of white maize per season at a minimum price of Sh3,500 per 90-kilogram bag, delivered directly to the factory by farmers from Murang’a County.
Governor Irungu Kang’ata, writing on his X handle, said: “Capwell Ltd, manufacturers of Soko brand unga, have signed an agreement to buy maize at Sh3,500 per 90kg bag. Kavagara and Paleah have signed similar deals. This has pushed farmers’ earnings up from brokers who previously purchased maize at Sh2,200.”
The Kenya Association of Manufacturers (KAM) said the partnership expands agro-processing and presents a major opportunity for market development and economic growth.
“Through agro-processing, farmers can earn higher and more stable incomes while reducing post-harvest losses. At the same time, we can cut down on imports of agro-based raw materials, save foreign exchange, increase the value of our exports, and ultimately reduce income inequalities across the region,” KAM said.
The Kenya Association of Manufacturers joined Capwell Industries and the Murang’a County Government as they entered into the MoU aimed at strengthening linkages between farmers and off-takers.
The partnership forms part of KAM’s Agriculture for Industry (A4I) initiative, which seeks to foster innovative partnerships and create an ecosystem where producers and off-takers can connect and transact seamlessly.
Governor Kang’ata called for the strengthening of linkages between the agricultural value chain and local industry.
“This approach will help farmers maximise returns from their produce and positively impact the growth and sustainability of the manufacturing sector,” Dr Kang’ata explained.
Immediate former KAM Board Chair and CEO of Capwell Industries, Rajan Shah, expressed optimism that the partnership will increase farmers’ incomes by strengthening their market access. “It will guarantee farmers a predictable and reliable supply chain,” he said.
KAM Chief Executive Tobias Alando called on all partners and development agencies to collaborate in unlocking the vast, untapped potential within Kenya’s agricultural sector for the benefit of all.
“Expanding agro-processing presents a major opportunity for market development and economic growth. Through agro-processing, farmers can earn higher and more stable incomes while reducing post-harvest losses. At the same time, we can cut down on imports of agro-based raw materials, save foreign exchange, increase the value of our exports, and ultimately reduce income inequalities across the region,” Mr Alando said.
