KENYA – The government of Kenya has expanded its budget for fertilizer subsidy by adding KES 8.25 billion (US$54M) to the program.
This follows the Supplementary Appropriation (No.3) Bill that was assented to by President William Ruto at the State House on Thursday, November 23.
The subsidy boost comes barely a week after the Africa Fertilizer Financing Mechanism (AFFM), a special AfDB fund has pledged Sh304.9 million (US$2M) partial trade credit guarantee and KES 33.3 million (US$219,000) grants funding to fast-track fertilizer distribution in the country.
Recently, President Ruto while delivering his first State of the Nation address in Parliament noted that the move to subsidize the cost of fertilizer was a masterstroke in the plan noting it has reduced from the previous KES 6, 500 (US$42.72) to now KES 2, 500 (US$16.43) per bag.
The head of state added that the move has now seen the maize production, in the country, go up by 200,000 per care this year with 18 million additional bags of maize set to be harvested.
To tame losses and ensure the stability of maize prices in the country, KES 2.1 Billion (US$14M) has also been apportioned to post-harvest management.
According to government executives, the post-harvest management fund will entail the acquisition of dryers, bulk storage facilities, and the purchase of excess maize from farmers to cushion them against price fluctuations.
The Government has said it will buy the produce from farmers at KES 4,000 per 90-kilogram bag.
Earlier this week, the Agriculture CS Mithika Linturi flagged off the first 100 grain dryers to be distributed in the larger Rift Valley region as El Nino wreaks havoc on maize farms.
According to Linturi, the dryers have the capacity to dry 14 tonnes of maize in two hours.
Further, an additional KES 1.7 billion (US$ 11M) has been set aside for the ongoing sugar reforms, including the payment of farmers’ arrears and the improvement of sucrose levels.
The government also allocated funds to other sectors. To enhance coffee production in the country, the Government has allocated KES 4 billion (US$26) for the sector’s revitalization.
Majority Leader Kimani Ichungw’ah added that KES 400 million (US$ 2.6) has also been made available to New KCC for mopping up excess milk during this rainy season.
“This will ensure that our farmers do not suffer from losses occasioned by increased supplies of milk in the market,” he said.
