Maize seed prices cut in State subsidy push

Kenya Seed Company cuts maize seed prices ahead of planting season. [File, Standard]

Kenya  Seed Company (KSC) has announced a reduction in maize seed prices amid increased pressure from farmers for a more sustainable approach to address challenges in the agricultural sector.

The reduction follows the start of the planting season preparations across the country.

Under the new pricing plan, a two-kilogramme packet will retail at Sh500, down from Sh600, while a 10kg pack will sell at Sh2,500. The 25-kilo bag will now retail at Sh6,000, down from Sh7,500.

This cut is expected to lower production costs significantly, especially for smallholder farmers.

In a directive issued to Kenya Seed Company (KSC), the government ordered a slash in the prices of certified maize seeds to improve access and expand cultivation.

The intervention is supported by a Sh2 billion financial aid expected from the National Treasury.

In 12, the Ministry of Agriculture instructed the seed producer to lower prices under a coordinated subsidy framework aimed at making farm inputs more affordable.

Sammy Chepsiror, the company's Managing Director, stated that support from the Treasury has helped the firm stay operationally stable and increase production to meet both domestic and regional demand.

“We were summoned by the National Assembly Agriculture Committee last week to discuss ways of subsidising inputs, and the government has committed Sh2 billion to us, resulting in lower prices to support farmers,” said Chepsiror.

Chepsiror disclosed that the company has expanded seed production beyond Kenya, into Uganda and Tanzania, to meet rising regional demand.

"We have expanded our seed production across the East Africa region to meet growing regional demand, and our goal is to position the country as a key player in East Africa’s seed systems," he said.

He added that the company has increased investment in seed multiplication and farmer support programmes to combat climate change effects and boost productivity.

“We have raised growers’ prices from Sh88 to Sh110 per kilo, which has helped increase production. We are employing strategies to contribute effectively to national food security," he noted.

Payouts to contracted seed growers have nearly doubled, from Sh2.7 billion three years ago to Sh5.4 billion, a deliberate move by the company to encourage full participation in certified seed production.

According to the MD, seed maize output has also risen substantially, from below 30 million kilos in 2023 to around 45 million kilos in 2025.

"The current stock is enough to satisfy local demand, with surplus earmarked for export to regional markets, including Uganda, Tanzania, Rwanda, and the Democratic Republic of Congo," he said.

Last year, the company used a bank overdraft to fund Sh2 billion for the subsidy programme announced by the President.

"This year, we are better prepared, with sufficient seed supply for both domestic use and export,” he added.

The government, through the Ministry of Agriculture, has enhanced the seed maize subsidy programme—part of a wider effort to stabilise the country’s staple food supply and support small-scale farmers, who form the backbone of Kenya’s agricultural economy.

The intervention comes at a crucial time as farmers prepare for the long rains planting season, which largely determines national maize output.

Farmers in the county have, over recent years, faced rising costs for certified seeds and fertiliser, coupled with unpredictable weather patterns influenced by climate change.

While farmers welcomed the reduction, they called for long-term solutions to address challenges in the agricultural sector.

"The subsidies offer is a short-term relief; the government needs to come up with sustainable solutions to resolve systemic issues within the agricultural sector," said Fredrick Rono.

Kenya National Federation of Farmers (KNEF) commodity representative Tom Nyagechaga urged for sustainable support models to ease farmers’ burdens.

'We argued for the government to adopt more sustainable support models, similar to those used in the sugar industry, where farmers receive farm inputs on credit and repay after harvest," said Nyagechaga.

He maintained that subsidies alone are insufficient to solve farmers' problems.

The farmers proposed that 25kg of seed maize retail at Sh3,500, 10kg at Sh1,500, and 2kg at Sh400, to shield farmers from high production costs.