Kenyans will have to dig deeper into their pockets to buy select commodities like sugar, coffee and tea.
This is following a move by agriculture stakeholders proposing the re-introduction of levies on specific cash crops.
While the government had allocated Ksh10 billion for the fertilizer subsidy in the current financial year, the stakeholders argue that the amount is not enough, hence the need to add taxes on the crops to finance the fertilizer subsidy program kitty.
The stakeholders are exploring a sustainable funding model for fertilizer, which includes adopting new levies for cash crops.
"We are looking for where else to tax for the benefit of our farmers. I know we have different commodities like sugar, coffee, tea, which we had proposed that let there be a small levy for these particular crops to be plowed back into its input," Eng Laban Kiprotich, the Agriculture Engineering secretary said.
Furthermore, the experts are calling for a review of some taxes on companies handling fertilizers to reduce the cost of production.
"There is some research that shows that agriculture withholding taxes and levies have a negative impact on farmers in the short run," Dr Clement Breisinger, the program leader of IFPRI said.
IFPRI develops research-based policy solutions, builds coalitions for policy change, and co-creates innovative analytical tools in close collaboration with ministries of planning, social solidarity, and agriculture.
IFPRI-Kenya is made up of globally renowned experts with extensive technical expertise in nutrition, agriculture, gender, and social protection.
Farmers have been encouraged to adopt sustainable and modern farming technologies that involve the use of organic fertilizer, economic land use, and intercropping lime use to optimize on the benefits.
The fertilizer subsidy program is part of the Kenya Kwanza's ways to support farmers into more productivity to ensure food security and access to nutritious, quality food.
For the 2025 long rains season, the government procured 7.4 million bags of fertilizer, the bulk of which will be delivered to stores by mid-January 2025.
Distribution is set to commence at the end of January, ensuring farmers are well-prepared by the onset of the rains in mid-March.
