Kenya’s fertiliser subsidy program has been hit by several challenges with non-recipients citing a lag between the date of receipt of the notification and redemption of the subsidized fertiliser, lack of finances to redeem the voucher, wrong timing, long queues, long distances, corruption, not being contacted despite registration, title deed, and obtaining information late.
According to the Central Bank of Kenya (CBK), access to government subsidized fertiliser among sampled farmers by the think tank stood at 49% in July 2023 compared to 43% and 29% reported in May and March 2023, respectively.
Fertiliser Subsidy Distribution System has been Automated
The respondents interviewed by the MPC Survey said there were improvements in the registration and distribution of the subsidized fertiliser and acknowledged that automation has simplified the process.
Nevertheless, some farmers raised concerns on the Ministry of Agriculture using the North Rift season as the benchmark for issuing the subsidized planting and top-dressing fertiliser, arguing that the regions are not homogenous and there could be timing differences in planting and harvesting.
Others noted that the utilization of the subsidized fertiliser is at times limited by lack of a sustainable water source given the dependence on rainwater.
In the month of August, the CBK survey projects that retail prices of cereals, grains and their end products are expected to either decline or remain unchanged. A balance of opinion analysis shows that respondents expect retail prices of cereals and grains to decline. Additionally, respondents expect a decline in the prices of beans, maize and green grams in August following the onset of the harvest from the lower Eastern, Western and South Rift regions.
The price of vegetable items is expected to reduce further in August though at a decreasing rate following increased supply of the fast-maturing crops from the long rains season. The prices of cooking oil/fat and sugar remain elevated and could rise further owing to the high importation cost and reduced cane deliveries, respectively.
It is expected that at least 2,149,760 farmers will benefit from this programme in its first phase of implementation. The subsidised fertiliser, which retails at KSh3,500 down from KSh6,000 per 50kg bag, is being transported to the National Cereals and Produce Boards (NCPB) across the target counties and will trickle down to the wards and locations through farmers’ cooperatives.
The programme is being jointly implemented under a multisectoral framework bringing together Ministries of Interior and National Administration; Agriculture and Livestock Development; The National Treasury and Economic Planning; Co-operatives, Micro, Small and Medium Enterprises Development; Investments, Trade and Industry.
The Government distributes the subsidy fertilizer only to farmers who have been registered by use of an e-voucher system that ensures traceability and full accountability of the subsidised fertilizers.
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