Agriculture Cabinet Secretary Peter Munya has announced that the government has released Ksh5.1 billion for the fertilizer subsidy kitty.
Speaking during a presser, on Friday, April 1, Munya stated this review will lower the cost of DAP fertilizer to Kshs.2,800 from a high of Kshs.6000, able to cover 1 million acres owned by smallholder farmers in the country.
CAN fertilizer will now be selling at Ksh1,950 down from Ksh3,900, UREA will retail at Ksh2,700 from Ksh6,500, NPK will sell at Ksh3,000 from Ksh4,900, MOP will be selling for Ksh2,500 from Ksh3,800 and Sulphate of Ammonia will be sold at Ksh2,500 from Ksh3,800.
The government has set aside Ksh5.7 billion to subsidize fertiliser for farmers following the rise in prices.
CS Munya stated that fertiliser prices have risen to levels that affected both large and small-scale farmers in the last year.
The rise in fertiliser prices is due to producer countries such as China, Russia and Turkey restricting exports to protect their farmers.
Prices have also increased drastically due to the heavy consumption and demand from countries such as India, Brazil and USA that are buying up large quantities, hence reducing available global supplies.
"This increased buying of fertiliser has also led to competition for shipping thus increasing the rates for bulk and container cargo to high levels," Munya stated.
The amount set aside will subsidize 114,000 metric tonnes for farmers. Fertilizer prices in Kenya were expected to skyrocket after the Ukrainian invasion by Russia. Kenya imports fertilizer from Russia and China.
“We get most of our fertilizer from Russia and China and this war may see the price of fertilizer hit Sh7,000 if there will be no subsidy in place,” CS Munya told Parliament on March 1, 2022.
The CS stated that the Ministry needed at least Ksh31.8 billion for the subsidy, adding that it would lower the cost of planting fertilizer (Diammonium Phosphate) to Ksh2,800.
He was asked by the parliamentary committee to formulate a budget that can be used to lower the cost of fertilizer before the supplementary budget was tabled.
