Agriculture & Microenterprise Development

Kenya Maize Development Programme (KMDP)

Maize is the primary staple food crop in the Kenyan diet, with a per capita consumption of 98 kilograms. The price of maize in Kenya is among the highest in eastern and southern Africa, and the lowest income quartile of the Kenyan population spends 28% of its income on maize. The inefficient maize production-marketing system has contributed to economic stagnation and worsening levels of poverty in Kenya. Increased productivity, more efficient markets, and rational government policies could dramatically alter the economic contribution of the maize sub-sector – from being a drag on the economy to becoming a key element in accelerated growth and poverty reduction. 

ACDI/VOCA was awarded a four year cooperative agreement by USAID-Kenya in September 2002 to implement the Kenya Maize Development Programme. ACDI/VOCA’s mission worldwide is to promote economic opportunities for enterprises and communities through the innovative application of sound business practices. Its core competence areas are enterprise development, food and agricultural systems, financial systems and economic recovery. The KMDP focuses on high and medium potential maize producing districts of Kenya. KMDP has project activities in Trans Nzoia, Uasin Gishu, Bungoma and Lugari Districts in Year One and is expanding to Nandi, Kisii/Nyamira, Nakuru and Bomet Districts in Year Two.

The Kenya Maize Development Programme(KMDP) contributes to USAID/Kenya's Agriculture and Microenterprise program objective to increase rural household incomes, by increasing productivity of maize in target areas, increasing access to agricultural markets and business support services and improving the effectiveness of small holder organizations. Led by ACDI/VOCA-Kenya, the Program involves a diverse consortium of partners within the maize value chain that include the Cereal Growers Association of Kenya (CGA), Farm Input Promotions Africa Ltd (FIPS) and the Kenya Agricultural Commodity Exchange (KACE).

Project objectives

Increase productivity of maize in the target areas:

• Soil fertility and soil amendment research/demonstration protocols are developed and disseminated to farmers and other program clients to foster sustainable resource use and increase maize yields;
• Through collaboration with seed companies and research institutions, and increased participation of the private sector, improved varieties of maize will be available to more rural producers;
• Producers will have access to improved inputs of certified qualities, and the technical understanding to apply them to greatest effect through the Maize Handbook ( developed by the program) and improved delivery of extension services;
• Producers will increasingly employ sustainable-use technologies to increase productivity and conserve the natural resource base; and
• Producers and other market participants will increasingly employ and pay for private sector services.

Increase Agricultural Markets and Trade

• Farmers and other market participants will have timely access to price discovery information and market mechanisms (trade opportunities) to act on that information to secure higher prices;
• Qualified producer organizations will have access to a range of services including safe and secure storage, and access to loans secured by those stored commodities, to benefit from off-season price differentials; and
• Members of small millers’ organizations and medium-size millers will reduce their raw materials costs through direct purchases from consolidated stores of mill-ready (dried and graded) maize from producer organizations.

Increase Access to Business Support Services

• Millers’ and farmers’ organizations and middle-market players will constitute a growing demand for private sector business services;
• The number of private sector service providers will increase and the diversity of their technical capacities will expand in response to these market demands; 
• New products and services will be launched in response to market demand; and
• Financial services such as warehouse receipting, crop and miller financing will become more available.

Increase Effectiveness of Small Holder Organizations

• Farmer clients learn to make choices between alternative farming practices based on their heightened understanding of the comparative advantages/disadvantages and their tolerances for risks, and have access to technologies, and the information required to profit from the improved technologies;
• Farmers learn new approaches to collective actions aimed at reducing costs and increasing operating efficiencies and profits;
• Members of well managed producer organizations, by virtue of the organizations’ creditworthiness, have access to a wider range of financial services products;
• Female membership and the number of women managers of smallholder organizations will increase, resulting in more equitable resource and profit sharing; and
• Smallholder organizations will have enhanced skills in the conservation of their natural resources base.

Kenya Maize Consortium
ACDI/VOCA-KENYA facilitates the Kenya Maize Consortium which seeks to promote a sustainable, competitive and efficient maize industry through appropriate policy advocacy, identifying and removing constraints in the sub sector, identifying and seizing opportunities for increased domestic, Regional and international trade leading to improved livelihoods and increased profits for all players in the value chain.

Key Results
1.  Through collaboration with seed and fertilizer companies, improved varieties of certified maize seeds and fertilizers have been made available to stockists and farmers groups in project area

FIPS Africa team showing the nutrient effect on maize in one of the field demonstrations The plot with Gypsum added to DAP and  MOP showed more vigor

2.   Training producer groups in Farming-as-a-Business which guides most farmers to the unavoidable conclusions that collective actions contribute to increased efficiencies and profits, and that saving for future investments is more beneficial than borrowing at high interest rates. KMDP activities have expanded the trading options of the maize farmers and traders through: assembly of product to meet larger volume contracts with millers and  large traders; application of quality control standards to obtain price premiums; and assistance in accessing essential technical services like moisture meters.
 

    
3.   The Annual Maize Business Fair whose main objective is to facilitate business linkages among the private sector players, farmers, public sector players and the NGO’s, had over twenty private sector companies exhibiting.
4. Implementation and use of marketing information (hardware and software) through improved content of  market information tools like websites, short messaging services (SMS), Interactive Voice Response(IVR),  Market Information Centers and Points (MICs and MIPs)
5. Training in Maize Farming-as-a-Business leading the participating farmers to the unavoidable conclusion that collective actions contribute to increased efficiencies and profits, and that saving for future investments is more beneficial than borrowing at high interest rates

Future activities
1. Maize Handbook under development to increase technical understanding in input use  and to improve delivery of maize extension services;
2.  Producers will increasingly employ sustainable-use technologies to increase productivity and conserve the natural resource base as KMDP promotes minimum tillage practices
3. Create a Private sector collateralized warehousing and work towards making it an institutionalized system.
4. Institutionalise producer group capacity building through the development of Agribusiness Training Center  at Co-operative college of Kenya in collaboration with other development partners

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