Kenya: Ministry seeks suppliers’ support in low-cost fertiliser plan

He said that this could be achieved by procuring the commodity outside the main planting seasons in the West through a centralised system to reap from economies of scale.

“The importers should buy the farm inputs during low season in the West when prices are rock bottom in those countries. They can also place orders as a team to cut on costs,” said Mr Koskei.

He did not elaborate how the importers would be selected and what safeguards would be in place to ensure the inputs reached farmers at a reasonable profit margin to the supplier in order to reduce the reliance on subsidised fertiliser.

Mr Koskei said that a balance should be struck so that subsidy does not jeopardise the private sector’s role in ensuring the cost of production was competitive enough to attract more investments into agriculture. However, he said, delays in supply of top dressing fertilisers would not have serious implications on this year’s crop.

Competence

“The government intervened on time and we only had challenges with provide enough Calcium Ammonium Nitrate (CAN), particularly for farmers who planted early,” he said.

CAN retails at Sh3,000 in the market compared to Sh1,600 at the NCPB depots.

Mr Koskei said that besides some 5,000 tonnes of CAN delivered to farmers, an additional 20,000 tonnes would be at the NCPB depots next week.

“We are reaching out to vibrant organisations and use of railway transport to improve on supply of the fertilisers to avoid unnecessary delays,” he said.

Mr Koskei challenged the Kenya Farmers Association and the Kenya National Trading Corporation to demonstrate their competence before they could be allowed to distribute fertiliser together with NCPB.

“They need to reorganise themselves and satisfy the government that they are efficient,” he said. “We have no problem working with them to advance the government’s development agenda.”