AGRICULTURENEWS

Govt Cuts Fertilizer Price to Ksh2,000, Halves Maize Seed Cost

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Kenya's CS for Agriculture and Livestock Mutahi Kagwe
Kenya CS for Agriculture and Livestock Mutahi Kagwe
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The government has announced a fresh subsidy on fertilizer 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, the price of a 50-kilogramme bag of subsidised fertilizer will fall from Ksh2,500 to Ksh2,000, while the government will meet half the cost of certified maize seed.

The intervention will reduce the price of maize seed from Ksh300 to Ksh150 per kilogramme, according to Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe.

This means farmers will pay Ksh300 for a 2kg pack of maize seed, down from Ksh600. A 10kg pack will cost Ksh1,500 instead of Ksh3,000, while the price of a 25kg pack will fall to Ksh3,750 from Ksh7,500.

The maize seed subsidy will target approximately 40 million kilogrammes, with the government estimating that the programme will provide about Sh6 billion in subsidies.

Farmers will access both the subsidised fertilizer and maize seed through government-designated distribution channels.

The measures are part of President William Ruto’s administration’s policy of shifting government support from subsidising consumption to subsidising production by lowering the cost of agricultural inputs.

The government says the approach is intended to enable farmers to increase production while strengthening national food security.

Fertilizer prices cut by more than 73 per cent

The latest price reduction builds on the government’s National Fertilizer Subsidy Programme.

In 2022, a 50kg bag of fertilizer retailed at approximately Ksh7,500. The subsidy subsequently brought the price down to Ksh2,500, with the latest intervention reducing it further to Sh2,000.

The government says this represents a reduction of more than 73 per cent from the 2022 price.

Since 2022, approximately 33.55 million 50kg bags of subsidised fertilizer have been distributed to about 1.98 million farmers, with government support amounting to approximately Sh78.79 billion.

The Agriculture Ministry says the support has coincided with increased agricultural production.

Maize production rose from 34.3 million 90kg bags in 2022 to 73 million bags in 2025, while maize imports declined by more than 66.5 per cent over the same period.

The government says these gains need to be protected from the effects of drought.

The latest intervention is therefore aimed at preventing farmers who have already suffered crop losses from being unable to finance the next planting season.

The government said its approach is based on the principle that farmers who lose crops to drought should not also lose the ability to plant the next crop because fertilizer and certified seed have become unaffordable.

Government steps up drought recovery measures

Beyond the input subsidies, the government said it will continue supporting farmers recovering from drought by lowering their production costs and helping them return to farming.

The Agriculture Ministry said it will also invest in irrigation, water harvesting and other climate-smart interventions aimed at strengthening the country’s resilience to changing weather patterns.

The new subsidy comes as the government seeks to sustain gains in domestic food production while protecting farmers from weather-related shocks.

The measures announced by Kagwe are expected to provide farmers with cheaper access to two of the key inputs needed for maize production, while supporting the government’s wider push to increase agricultural output and strengthen food security.

Read: Farmers Credit Affordable Fertilizer and Better Infrastructure for Higher Yields

>>> KenGen, Chinese firm in Joint KSh 103.2Bn Fertilizer Plant Project

Written by
BT Reporter

editor [at] businesstoday.co.ke

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