The 2025 planting season has arrived, and both seed and commercial maize farmers are concerned whether the proceeds from last year’s harvest will sustain production, especially given the recent 30% price increase by seed companies. Seed maize growers, who had already signed contracts with the State-controlled Kenya Seed Company (KSC) for the current season at Ksh 110 per 1 kg, down from Ksh 88, are now faced with a dilemma.
The government’s directive to KSC to lower prices for commercial seed has created a gap between the cost of production and the price of commercial seed. This presents a challenge for the Kitale-based seed firm, which must compete with private seed companies that were not affected by the government’s price decision.
Seed maize farmers are left wondering who will compensate for the deficit between the contracted prices and KSC’s new pricing. The issue became more pronounced when seed maize farmers from the North Rift region gathered at Kitale Golf Club, invited by the Yara Fertilizers group. During the meeting, the farmers threatened to switch to other crops, citing the increasing cost of seed maize production, which is considered both sensitive and less profitable.
Led by Eng. Biketi Wabuyele, who is based in the US, the farmers, under the Seed Maize Growers Association umbrella, questioned the logic behind the new prices imposed on KSC. They speculated that there might be cartels with ill motives working to import seeds in an attempt to undermine KSC. The Kitale forum offered the seed growers an opportunity to discuss diversification strategies with seed firms. The Yara Fertilizers group was urged to meet the costs of soil testing, to be conducted by independent bodies like the Kenya Plant Health Inspectorate Services (KEPHIS).
In a statement, the seed farmers expressed dissatisfaction with the insurance policies provided by financial institutions to compensate for crop failure or poor harvests. They proposed that these policies should be based on an individual’s performance rather than general climatic conditions. Additionally, they raised concerns about the difficulty of obtaining title deeds and other ownership documents for leased plots, which are required for signing contracts with KSC.
The farmers resolved to advocate for their agents to be present at seed conversion processing factories, subsidies on inputs due to inflation, faster processing of loans for seed growing, the leasing of Agricultural Development Corporation (ADC) farms with adequate isolation space, and harmonization of seed production with the Ugandan government. They also claimed that private firms had been given an upper hand over KSC with the aim of declaring the company insolvent, leading to massive seed maize imports.
“The importers should align themselves with KSC guidelines as the government’s agent in the industry and other seed players,” said the farmers. They urged all industry players to step up their efforts to avoid disrupting seed production.
However, speaking at the burial of former IEBC Chairman Wafula Chebukati in Trans Nzoia, President William Ruto assured the farmers that the government would provide a subsidy to KSC if any gaps arose due to the cancellation of the new prices. He also emphasized that there were sufficient fertilizers to distribute to farmers this season.
“Trans Nzoia is an important county because it produces about 60% of the nation’s staple food. The government will do everything possible to encourage farmers to produce more. When Kenya Seed implemented high prices for this season, we asked them to stick to the 2024 prices, and if there are any gaps, we will provide a subsidy,” said President Ruto.
His statement addressed the growing concerns of farmers in maize-growing counties such as Trans Nzoia, Uasin Gishu, Kakamega, Nakuru, Nandi, and Bungoma. Many farmers in these areas were contemplating whether to continue planting commercial or seed maize or switch to other crops due to the price hikes in all varieties of seed maize. This uncertainty regarding food production is compounded by the importation of commercial maize to supplement last year’s unstable harvest, which some farmers are still holding in storage, anticipating higher prices of at least Ksh 3500 for the 90 kg bag offered by the National Cereals and Produce Board (NCPB).
Seed companies, including KSC, Agricultural Development Corporation (ADC), Western Seed Company (WSC), and Zimbabwe-based Seed Co, justified their price increases by citing the rising global cost of production. However, ordinary farmers fear that they will be left to cover the gaps from their own pockets. International seed agencies, such as the Royal Seed Company, South Africa-based PANA, and Germany-linked Dekalb, also increased prices due to global transportation costs, inflation, and insurance.
To remain viable in the challenging market, seed producers agreed to raise prices to cushion farmers from productivity challenges and exploitation by fraudsters selling fake or substandard seeds. For example, while KSC pegged its 2 kg, 10 kg, and 25 kg maize seed packages at Ksh 620, Ksh 3,000, and Ksh 7,500 respectively, their international counterparts priced the same quantities at Ksh 850, Ksh 4,500, and Ksh 9,800. Local producers such as ADC, Seed Co, and WSC set their prices between Ksh 200 and 500, but they assert that these price adjustments are minimal and necessary to survive in the competitive industry.
Under the 2024 prices, KSC will now offer 2 kg at Ksh 420, 10 kg at Ksh 2,100, and 25 kg at Ksh 5,250, following a directive from PS Paul Rono of the Ministry of Agriculture in a letter dated 25th February 2025 to KSC CEO Sammy Chepsiror.
KSC also secured a significant deal with the Trans Nzoia County government to supply maize seed to vulnerable families in all 25 wards as part of Governor George Natembeya’s Operation Fukuza Njaa program aimed at increasing food production. However, it remains unclear whether the contract was signed under the new or old prices.
Commercial farmer Nelson Wakwabubi from Kwanza Sub-county shared that he harvests between 15-25 bags of 90 kg from a one-acre farm, with minimal profits due to fluctuating prices every season. Despite the government offering subsidized 50-kg fertilizer at Ksh 2,500, the cost of land rental, tilling, planting, top-dressing, harvesting, storage, and transportation continues to eat into his profits. As a result, he is considering switching to coffee, sugarcane, avocado, or macadamia production.
For seed growers, the costs are relatively the same, except for being contracted by seed firms, which provide inputs through loans and skilled supervision. Seed growers are paid Ksh 110 per 1 kg of unprocessed seed, but seed companies sell the same quantity for an extra Ksh 300. However, both commercial and seed growers face common challenges, such as natural calamities, delayed rains, diseases like Grain Leaf Spot (GLS) and Maize Lethal Necrosis Disease (MLND), poor road networks, and unpredictable weather.
Maize theft has also become rampant, forcing growers to hire security to guard their crops before harvest. The difficult and impassable roads present additional challenges for seed growers, as their harvests must reach processing factories within a specified time to avoid rejection. Seed firms are also facing challenges such as the increasing subdivision of farms for settlement and a declining interest in maize farming.
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KSC is currently cultivating 2,000 acres with 1,600 contracted growers but needs an additional 30,000 acres to meet both local and export demand, especially within the Great Lakes Region of Africa. ADC, which holds a 52% stake in KSC, is cultivating nearly 1,500 acres of seed maize and is the main supplier to KSC. Dekalb, in its third year in Kenya, operates mainly in Nyanza, Coast, and Ukambani regions, with plans to expand into other areas of the country, focusing on early-maturity varieties.
All stakeholders in the seed industry agree on the need for fair competition, the guarantee of genuine products, the unbiased role of KEPHIS, engagement with only approved agents and retailers, timely product supply, and adherence to recommended zones and regions.
By Abisai Amugune.
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