The Future of Smallholder Farming in Eastern Africa - Uganda ...

5.Develop farmers’ and traders’ organizations: This needs special attention as the results
of this study clearly indicated the traders’ felt need for such organizations. The
organizations would enhance farmers’ and small traders’ capacity to exploit economies of
scale in acquiring marketing inputs, access to credit, and capacity to negotiate for better
prices with the more organized large buyers, who often possess more market information.
The government and nongovernmental organizations have a clear role to play in
catalyzing the formation of functional farmers’ and traders’ organizations.
6. Enact stable, unambiguous, and supportive government policy: Until now the Kenyan
government has limited itself to a passive role by merely allowing private trade to exist. An
articulate and stable government food policy to support the development of the private sector
is needed. Government must have clear objectives for the private sector in the liberalized
market. Private traders need assurance that their legal status is not under any threat and that
they will retain their current freedom to move maize and take other marketing actions. Policy
reversals that create uncertainty in the market should be avoided. The rapid changes
introduced into the marketing sector in recent years should be embedded in effective
legislation. Enforcing contracts and standards regulations are key to establishing an enabling
environment for liberalization to yield positive benefits to traders and other market
participants.