The Government of Kenya has unveiled a KSh5.7 billion fertilizer subsidy fund to subsidise prices for 2.28 million 50-kg bags of fertilizer for farmers growing food crops.
Agriculture Cabinet Secretary Peter Munya says the subsidy is expected to boost food production by reducing farmers’ high input costs.
Following the subsidy announcement, CS Munya published new fertilizer prices that cover an estimated 114,000 metric tonnes of the product.
Farmers will now pay KSh2,800 for a 50Kg of DAP fertilizer from a high of KSh6000, KSh1,850 for CAN, KSh2,700 for UREA, NPK KSh3,000, MOP KSh2,500, and Sulphate Ammonia KSh2,500.
According to CS Munya, the rising prices of fertilizer were triggered by logistical constraints due to the global COVID-19 pandemic.
Therafter, prices further skyrocketed after China, Russia and Turkey restricted exports to protect their local farmers after demand for the commodity surged in India, Brazil, and USA.
Increased buying by major importers of the commodity also led to higher shipping charges for bulk and containerized cargo, a situation worsened by the Russia-Ukraine conflict.
Elsewhere, Nigeria has opened a 3-million-tonne fertilizer plant at a cost of $2.5 billion, seeking to become a net exporter of fertilizer. The plant is the largest in Africa and second largest in the world.
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