Trade Cabinet Secretary Moses Kuria, on Tuesday, June 6, struck a deal that paved the way for a Belarusian Company to invest in the Dongo Kundu Special Economic Zone (SEZ) in Mombasa, which cost Ksh39 billion.
In the new deal, the Belarusian Potash Company committed to building a fertiliser manufacturing firm to boost President William Ruto's quest to lower living costs.
The multinational company produces and exports over 100 million metric tonnes of fertiliser monthly.
Potash fertiliser produced by the Belarusian company contains potassium, an essential ingredient that helps plants develop disease resistance, produce strong cells and store carbohydrates.
According to Kuria, the deal would revitalise the agricultural sector in the country and spur economic growth.
"This is a major boost to our agricultural sector which is the backbone of our country's economy, contributing approximately 33 per cent of Kenya's Gross Domestic Product (GDP)," Kuria stated.
"We have also agreed to explore the possibility of establishing trading companies in each country under the African Continental Free Trade Area (AfCFTA) to expand African markets and support the need of a growing agricultural sector," he added.
Currently, the company supplies nearly 50 per cent of potash fertiliser to Kenya, essential for agricultural production.
President William Ruto is keen on fulfilling his pledge to provide over 5 million farmers with subsidised fertiliser.
The head of state, upon assuming office, reduced fertiliser prices to Ksh3,500 from Ksh6,500 to help the country become food sufficient and reduce the rising cost of living.
With other food items soaring, Ruto argued that food production and shifting from rain-fed agriculture to irrigation would curb overdependence on subsidies.
Currently, 2 kg of sugar retails at Ksh420, while a 2 kg packet of maize flour costs Ksh220.
The prices soared despite Ruto's promise to lower the cost of unga to Ksh150.
