The government has announced a fresh reduction in the cost of subsidised fertiliser and certified maize seed as it seeks to cushion farmers from drought-related losses and encourage them to return to production.
Under the new intervention, a 50-kilogramme bag of subsidised fertiliser will retail at KSh2,000, down from KSh2,500. The government will also meet 50 per cent of the cost of certified maize seed, reducing the farmer's price from KSh150 per kilogramme, with the subsidy reflected across different pack sizes.
Under the revised arrangement, a 2kg pack of maize seed will cost KSh300 instead of KSh600, while a 10kg pack will cost KSh1,500 instead of KSh3,000. A 25kg pack will retail at KSh3,750, down from KSh7,500.
The maize seed intervention targets approximately 40 million kilogrammes, representing an estimated KSh6 billion in government subsidy, according to Agriculture Cabinet Secretary Mutahi Kagwe.
Lower production costs
The subsidy is intended to make it easier for farmers affected by drought to resume production while lowering one of the biggest costs associated with crop farming.
The intervention could also have implications across Kenya's agricultural value chain. Improved access to affordable inputs could support future crop production, improve supply to food processors and retailers and help moderate pressure on food prices.
However, the impact will ultimately depend on the availability of subsidised inputs and farmers' ability to access them in time for the planting season.
The government has increasingly shifted its agricultural support towards production-oriented interventions, with the latest subsidy forming part of efforts to strengthen food security while helping farmers manage the effects of changing weather patterns.
For agro-dealers, seed companies, food processors and other players in the agricultural sector, the programme could influence demand and supply conditions in the coming months.
