Fertiliser Prices to Remain at Ksh 2,500 as President Ruto Commits to Boosting Food Security

President William Ruto made a significant announcement that further solidifies his administration’s focus on improving food security in Kenya. Speaking during the celebrations held in Kwale County, the President emphasized that fertilizer would continue retailing at a subsidized price of KSh 2,500 across the country, irrespective of its intended agricultural use. This policy reaffirms the government’s efforts to bolster food production and reduce the cost burden on farmers, particularly as Kenya continues to grapple with high living costs and fluctuating agricultural yields due to climatic changes.

This article takes a deeper dive into the implications of this continued fertilizer subsidy, its potential benefits and challenges, and the broader context of agricultural policies in Kenya under Ruto’s administration.

1. The Importance of Fertilizer in Agriculture

Fertilizer is a critical input in modern farming, playing a vital role in enhancing soil fertility and boosting crop yields. In a country like Kenya, where agriculture remains the backbone of the economy, accounting for approximately 33% of the Gross Domestic Product (GDP) and providing employment to over 75% of the rural population, access to affordable agricultural inputs is essential. The majority of small-scale farmers depend on inorganic fertilizers to maximize their yields and ensure food security both at the household and national levels.

However, for many years, the high cost of fertilizer has been a major impediment to productivity for Kenyan farmers. The rising global prices of inputs, exacerbated by disruptions such as the COVID-19 pandemic, supply chain issues, and the Russia-Ukraine war, have pushed fertilizer prices up, leaving many farmers unable to afford adequate quantities.

2. Ruto’s Price Control and Its Impact on Food Production

Since assuming office in 2022, President William Ruto has prioritized agriculture as one of the key pillars of his administration. By ensuring that fertilizer continues to retail at KSh 2,500, Ruto’s government aims to cushion farmers against rising input costs while driving increased agricultural production.

In his speech, President Ruto highlighted the positive impact that affordable fertilizer has had on food production, stating, “We have seen the impact on food production.” The results of the subsidy have been encouraging, particularly in regions where crop yields had dwindled due to farmers’ inability to purchase sufficient fertilizer. This policy move seeks to sustain and improve those gains, encouraging farmers to increase their acreage under cultivation and optimize their production.

Agricultural experts concur that reduced fertilizer prices can lead to higher crop yields, which in turn helps to stabilize food prices in local markets. With fertilizer being more affordable, more farmers can afford to apply the recommended quantities, improving the fertility of their land and ensuring better harvests. This is especially important for staple crops such as maize, rice, and wheat, which are crucial to Kenya’s food security.

3. Government Procurement and Distribution

During the Mashujaa Day address, Ruto reassured Kenyans that the government had already concluded the process of procuring the next consignment of fertilizer. This commitment ensures that farmers will have access to adequate supplies as they prepare for upcoming planting seasons. The President’s statement also suggests that his government is keen to maintain a steady flow of inputs, avoiding the perennial shortages that often lead to price hikes.

The procurement process is a critical component in this subsidy program. Historically, delays in the acquisition and distribution of fertilizers have plagued Kenya’s agricultural sector, leaving farmers without access to inputs at crucial planting times. By concluding the procurement early, the Ruto administration seeks to avoid such challenges and ensure that the fertilizers reach farmers on time.

However, the effectiveness of the government’s distribution mechanisms remains a topic of debate. While subsidized fertilizers have been available to many farmers, there have been instances where corruption and inefficiencies within the supply chain have delayed delivery, or where subsidies have not reached the intended beneficiaries. To address these concerns, it is imperative that the government takes steps to streamline the distribution process and ensure that the subsidy benefits all farmers, particularly those in remote and marginalized areas.

4. The Role of Fertilizer Subsidies in Alleviating Food Insecurity

Kenya, like many countries in sub-Saharan Africa, faces persistent food insecurity challenges, driven by a combination of factors, including climate change, erratic rainfall patterns, and poor agricultural practices. By making fertilizer more affordable, the government aims to alleviate some of these challenges by increasing the productivity of smallholder farmers, who contribute significantly to the country’s food supply.

This policy also aligns with the government’s broader food security strategy, which includes initiatives aimed at enhancing irrigation, mechanizing agriculture, and promoting climate-smart farming practices. Fertilizer subsidies, when properly managed, can complement these efforts by ensuring that farmers have the necessary inputs to maximize their production potential.

Nevertheless, critics argue that subsidies alone are not enough to address the deeper structural issues facing the agricultural sector. While lower fertilizer prices may improve short-term productivity, long-term solutions will require investments in extension services, better access to markets, post-harvest handling, and the promotion of sustainable agricultural practices.

5. Challenges Facing Fertilizer Subsidy Programs

While the continuation of the fertilizer subsidy is a positive step, it is not without its challenges. One major concern is the sustainability of such a subsidy in the long term. Fertilizer subsidies require significant financial resources, and with Kenya’s public debt levels rising, questions have been raised about the government’s ability to sustain this program over the years.

Furthermore, subsidies often come with the risk of inefficiency and corruption. If not properly managed, subsidized fertilizers could end up in the hands of unscrupulous traders who may resell them at higher prices, thus defeating the purpose of the subsidy. In this regard, the government will need to strengthen monitoring and accountability mechanisms to ensure that the fertilizer reaches the farmers it is intended for.

Another concern is the over-reliance on chemical fertilizers. While these fertilizers can enhance productivity in the short term, overuse may lead to soil degradation and long-term environmental impacts. To address this, there is a growing need for the promotion of organic fertilizers and integrated soil fertility management systems that balance the use of inorganic inputs with sustainable farming practices.

6. Conclusion: A Balanced Approach to Agriculture

President William Ruto’s decision to continue retailing fertilizer at KSh 2,500 is a commendable move that demonstrates his administration’s commitment to supporting Kenya’s agricultural sector. By making fertilizer more affordable, the government is empowering farmers to increase their productivity, which in turn will contribute to improved food security and economic stability.

However, for the fertilizer subsidy to have a lasting impact, it must be accompanied by a broader agricultural strategy that addresses the underlying challenges in the sector. This includes investing in infrastructure, improving access to markets, promoting sustainable farming practices, and ensuring that the subsidy reaches the most vulnerable farmers.

As Kenya looks to the future, it is clear that agriculture will remain a key driver of economic growth and food security. With the right policies in place, Kenya can harness its agricultural potential to not only feed its growing population but also position itself as a leader in food production in the region.