/ 24 August 2009

Japan gives Kenya $7,7bn for food aid

Japan gave Kenya a $7,7-billion grant on Monday to buy food in response to an appeal by the east African country’s president who declared a food shortage a national disaster.

The government says up to 10-million people in both rural and urban areas are at risk of severe hunger because of food shortages after insufficient rains.

”Japan is the first development partner to give financial commitment after the food crisis was declared a national disaster and appeal for assistance made,” Finance Minister Uhuru Kenyatta said during a signing ceremony.

”This support could not have come at a better time when the country is experiencing the worst drought after going through the difficult time of post-election crisis, high food prices and the global financial crisis.”

The money will be used to buy maize, the country’s staple food, he said.

Kenya’s maize production was reduced partly by post-election violence early last year, when fighting caused the destruction of the crop, displaced farmers and prevented planting.

Agriculture Minister William Ruto has said maize output will fall to 20,4-million 90kg bags after the long rain season that compared with 28-million bags in normal seasons.

Ruto also said that high prices would continue to be seen for the rest of the year.

Kenya’s inflation in July was unchanged at 17,8% from June due to high food prices, government statistics showed. — Reuters