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