Subsidized Fertilizer to ensure Food Security

Overall objectives:

To increase access and utilization of fertilizer especially among the small holder farmers; lower and stabilize fertilizer prices and increase crops productivity

1. The Government procured 171,750 Metric Tons (MT) of assorted fertilizer in 2013/2014 and 205, 955 MT in 2014/2015. The subsidized fertilizer was for coffee, sugarcane and food crops, especially maize. In addition, 69,000 MT was procured for tea farmers.

2. DAP price range has been maintained from 6,500 Kshs per bag before the subsidy to 3,400 Kshs in 2015 while CAN prices has been stabilized at 2,550 per bag.

3. With the subsidy programme crops yields has increased. For example maize yields per hectare increased from 14.7 bags (90 Kgs) in 2012 to 20.7 bags in 2014; tea production increased from 420 million Kgs in 2012 to 445 million Kgs in 2014; cane production increased from 5.8 Million MT in 2012 to 6.4 Million MT in 2014.

4. Fertilizer usage amongst small holder farmers has increased as indicated by increased fertilizer import volumes which increased from average of 395,000 mt in 2011/12 to 680, 000mt in 2013/14.

5. In order to enhance efficiency and targeting of needy farmers the government has contracted Safaricom Ltd to develop an electronic Fertilizer management system.

6. For long term development of fertilizer industry, the government has identified a strategic partner (Toyota Tsusho Company) to construct fertilizer processing plant. The company is in the process of constructing the plant in Eldoret and will start production by March 2016.

7. The government has established fertilizer and seed development fund of kshs. 3 billion which will increase to 15 billion by 2017. Draft regulations to operationalize the fund are ready.