THE POLITICS OF MAIZE BETWEEN THE KENYA GOVERNMENT AND US AMBASSADOR

THE STANDARD
NAIROBI, KENYA

By David Ohito

A standoff has emerged between Kenya government and the US embassy over the handling and distribution of maize and wheat imports from the US worth Sh6.6 million meant for the starving masses.

The US embassy is accusing Kenya government officials of putting numerous hurdles on its path over the consignment from the US that is aimed at helping to lower the current high food prices.

The Government is also insisting that the National Cereals and Produce Board (NCPB) play a major role in the process, which the Americans are opposed to.

The embassy is also incensed at the high charges of grain handling and the long durations ships with relief food have to wait before being offloaded.

At the same time, the British government has insisted that its donation of food worth £5.5 million (Sh605 million) will be channelled through the World Food Programme (WFP) and not the Kenya government because of corruption.

The twin issues come even before the dust settles over accusations and counter-accusations by senior Government officials on the safety of the Sh300 million maize imported from South Africa.

Unacceptable deal

"The Government is opposed to our loan guarantees for maize worth US$83 million (Sh6.6 billion). They also want the NCPB to play a big role in the process. But this for us is totally unacceptable," the US Ambassador Michael Ranneberger told The Standard.

The US Ambassador revealed that the ship is on the channel and would be ready to offload when he arrives in Mombasa tomorrow.

Ranneberger added: "The Kenya Government has not agreed to the programme and I have to travel to Mombasa to try and resolve the matter."

Details obtained by The Standard pointed an accusing finger at Government for appointing the NCPB to monopolize the imports under the US loan guarantees.

NCPB, it emerged, is seeking Sh5 billion from the Ministry of Finance to move the American maize consignment from the Port of Mombasa into its silos, if it is granted the deal.

The US embassy on the other hand argues that since the country faces a food shortage, the maize and wheat imports should go directly to the market and not through the silos. It wants private agencies and importers to take up the food consignments.

Food crisis

Ranneberger said the US embassy, in recognition of the humanitarian impact of food crisis, is working tirelessly to facilitate and finance the private sector’s importation of white maize and wheat.

A letter from Ranneberger to the Ministry of Finance that was seen by The Standard reads in part: "Unfortunately, we are facing challenges, both at the Port of Mombasa and in negotiating the GSM-102 credit guarantee programme."

While making the UK donation, the country’s Secretary for International Development Douglas Alexander announced the Sh605 million-hunger kitty after he met with Prime Minister Raila Odinga at his Treasury House offices.

Alexander raised concerns over corruption, the culture of impunity and extrajudicial killings in the country. "We are concerned about the Transparency International report on corruption in Kenya. Graft continues to hold back development and progress," Alexander said.

"Our position is zero-tolerance on corruption. The British taxpayers money must be used effectively for intended purposes only," Alexander added.

"The Government must tackle issues of corruption and end bribery for it has immense damage on the people of Kenya."

Raila promised to make public actions the Government has taken on corruption.

The PM admitted that the economy was getting a thorough beating following the impacts of global financial crisis.

Tourism affected

"Numbers of tourists have plummeted while remittance of funds by Kenyans in the Diaspora has reduced drastically.

The Minister for State in charge of Special Programmes Naomi Shaban, however, downplayed the issue saying there was no cause for alarm.

Ranneberger said he would issue a comprehensive statement tomorrow.

But the Minister for State in charge of Special Programmes, Naomi Shaban, however, downplayed the issue saying there was no cause for alarm.

Dr Shaban said the US ambassador should raise the matter with the Prime Minister who is the chairman of the Cabinet’s ad hoc committee on food security.

In his letter Ranneberger says: "At the Port of Mombasa, vessels carrying needed bulk maize and other grains are facing unacceptable delays and unreasonably high port charges to offload the food for distribution to the Kenyan market.

"…These problems are largely due to the Government of Kenya protecting from competition a single monopoly firm which handles bulk grain offloading at the Port. Because only one firm is licensed to operate, grain vessels are waiting up to two weeks to offload grain, as compared to an international average of four days or less."

comprehensive statement

The US Embassy further says the absence of competition is also resulting in high grain handling prices.

The letter cites the Port of Cairo where the offloading charges are US$4 (Sh320) per tonne, as opposed to Kenya’s $14 (Sh1,200) for the same service.

Ranneberger noted that the transport bottleneck from the port to inland markets must also be addressed to prevent a backlog of grain at the port.

He challenged the Government to evaluate existing applications by private firms and license the construction and operation of the second grain bulk handling facility.