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County governments and Kenya National Bureau of Statistics (KNBS) will soon determine prices for all agricultural products in the country, including vegetables and fruits. This is if the Senate approves a bill proposed by nominated senator Veronica Maina.

The Agriculture Produce (Minimum Guaranteed Returns) Bill 2024 will require every county to create a fund for the returns, taking into account data from KNBS. The pricing framework will consider several factors including farm inputs such as seeds, herbicides, pesticides, and fertilisers, as well as livestock production inputs such as animal feeds and drugs. Labour, fuel, irrigation, machinery, and farm rent will also be considered.

Guaranteed returns

“The minimum guaranteed returns shall be twenty per cent of the profit above the comprehensive cost,” reads part of the bill.

The bill, however, noted that the prices are subject to review owing to the ever-changing market prices in the country. More notably, the bill has specific reservations to the refunds’ recipients and mode of payments.

“Minimum guaranteed returns shall only be paid where the agricultural produce is largely consumed locally, through direct transfers to the beneficiaries’ bank accounts, and in instances where the market returns obtained by beneficiaries fall below the recommended minimum guaranteed returns,” the bill further notes.

The funds are also subject to suspension or cancellation if payments are obtained through misrepresentation, fraud or failure to disclose any material information. Payments in excess amounts published in the Gazette or approved errors can also lead to cancellation and suspension.

Currently, prices for agricultural products are greatly determined by market forces and various government agencies, co-operatives, and regulatory bodies, leaving farmers vulnerable to price fluctuations.