The Kenya Agriculture and Livestock Research Organisation, (KALRO) has paid Sh394,800 to a farmers’ group for 564 kilograms of Amaranthus seeds supplied in 2012 under a World Bank-supported project implemented in Yala, Bondo, Kisumu West and Butere Mumias. The settlement follows mediation by the Commission on Administrative Justice after a 14-year delay.
In a statement issued on Tuesday titled, “KALRO Pays Farmers for Indigenous Vegetable Seeds After Fourteen Years, Following Mediation by the Ombudsman,” the Commission said the payment resolves a long-standing dispute dating back more than a decade.
Two representatives of the farmers’ group had lodged a complaint with the Commission, alleging delays in payment for vegetable seeds produced under a contractual agreement with the former Kenya Agricultural Research Institute (KARI), now KALRO.
According to the group, it had entered into a contract with KARI to produce standard commercial vegetable seeds under the project “Scaling Up Farmer-Led Seed Enterprises for Sustained Productivity and Livelihoods in Eastern and Central Africa.”
The programme was funded by ASARECA, described as a World Bank project in conjunction with KARI, and implemented in Yala, Bondo, Kisumu West and Butere Mumias Sub-Counties.
Under the arrangement, the farmers produced Amaranthus and Spider Plant seeds, which were approved by the Kenya Plant Health Inspectorate Service (KEPHIS).
The group then supplied the seeds to KARI for sale and distribution through its seed unit. However, payment was not made.
In its response to the Commission, KALRO said that under the agreement, payment would be made once the seeds were sold.
The organisation explained that its seed unit had been unable to sell the seeds due to challenges with packaging and marketing, noting that the project ended in 2012 and that no funds were available for packaging and marketing.
When initial correspondence failed to elicit a response, the Commission issued reminders in line with its regulations.
In its final reminder, the Commission warned, “Please note that the Commission is yet to hear from you regarding the subject matter, and requests you to address the same within fourteen days, failure to do so, the Commission will invoke and issue summons under Section 26(a) and 27(a) of the CAJ Act and Regulations 17(4) of the CAJ Regulations.”
KALRO subsequently requested more time, citing difficulties in tracing documentation to verify the volume of seeds collected from the farmers.
It noted that the project had been handled by its predecessor, KARI, and that records appeared incomplete. The farmers were asked to provide documentation detailing the quantity of seeds delivered.
The Commission forwarded the documents provided by the farmers to KALRO for review. In a later response, KALRO acknowledged that seed varieties had been transported from Kisumu to Machakos (KARI Katumani).
On December 20, 2012, KEPHIS issued a Stop-Sale Order for Spider Plant (Lagveg 003) after germination tests showed the seeds did not meet the required germination percentage. The seeds were to be destroyed and could not be sold or distributed as planned.
KALRO indicated it did not have records concerning the destruction of the Spider Plant seeds and requested additional time to review its files further.
The Commission, citing Article 47 of the Constitution and the Fair Administrative Action Act of 2015, noted that a public entity must remain accountable and clearly explain its course of action where a matter cannot be resolved expeditiously.
Under its mandate in Section 8(f) of the CAJ Act, 2011, the Commission facilitated mediation between the parties.
During the deliberations, KALRO offered to settle by paying for the Amaranthus seeds at the current market price of Sh700 per kilogram, noting that there was no dispute regarding the Amaranthus and that the disagreement concerned the Spider Plant seeds.
The farmers initially declined the offer, insisting that the original agreement be honoured and payment made at the agreed rates.
After further consultations, KALRO agreed to offer Sh700 per kg for the full 564 kilograms claimed, bringing the total settlement to Sh394,800.
The organisation said the offer was fair, considering the prolonged duration of the dispute, including interest at the current market cost.
The farmers accepted the offer, bringing the matter to a close. Confirming the payment, KALRO wrote, “This is to inform you that the amount due to the farmers' group has been settled.”
