New regulator to monitor country’s grain reserves

Government will establish a Grain Sector Regulator (GCK) to enhance grain production, protect grain producers, traders and consumers.

Under the restructuring plan of the National Cereals and Produce Board (NCPB), Government plans to create various autonomous agencies to support a competitive and efficient grain sector. 

The new institutions include National Food Security Agency (NAFOSA), Grain Corporation of Kenya (GCK) and Commodity Exchange (COMMEX). NAFOSA will replace the national Strategic Grain Reserve (SGR). Last week, Agriculture Cabinet Secretary Felix Koskei confirmed that the SGR has 3.1 million bags of maize of which 500,000 bags will be released to the local market to boost supply.

Government engaged consultancy firm Ernst and Young (EY) to undertake a study on the restructuring of NCPB. The consultants recently submitted a draft report for review.

Before full reorganisation of NCPB, the ministry is seeking more views from the value chain players.

The proposed GCK will upscale ongoing processing and sale of the Nafaka products, and improve warehouse-receipting services, according to sources.

Further, the institution will be required to explore Container Freight Station (CFS) & bonded warehouses as a potential business line.

Laban Gathungu, a partner with EY in charge of Public Sector Advisory Services says the recommendations outlined in the restructuring plan of the NCPB conform to the current proposed parastatal reforms as well as overall government structure.

“These recommendations are in line with The Report of The Presidential Taskforce on Parastatal Reforms (October 2013) which recommended that that NCPB be restructured to transfer the SGR mandate to the relevant ministry and retain NCPB as a commercial entity under the Government Investment Corporation (GIC),” said Mr Gathungu.