Agriculture ministry seeks Kshs. 31B subsidy to cool off fertilizer prices

The price of a 50kg bag of fertilizer could hit Kshs. 7,000 in the near future if no subsidy is put in place as global prices surge following the raging war between Russia and Ukraine.

Agriculture Cabinet Secretary Peter Munya has said Kshs. 31.8 billion will be needed to stabilize fertilizer prices with parliament offering Kshs. 3 billion for the programme in the supplementary budget.

Currently, fertilizer retails at an average of Kshs. 6,000 in most parts of the country as the commodity experienced unprecedented price increases.

The government blames the high prices on the current Russia Ukraine war as Kenya sources her fertilizer from Russia.

This coupled with the covid-19 pandemic that saw reduced production of fertilizer in China and hoarding of the commodity by Brazil, India and the US has seen global prices shoot up.

The government warns that farmers might purchase fertilizer at Kshs. 7,000 per bag until August if a subsidy kitty is not put in place.

The Agriculture Ministry estimates that with Kshs. 31.8 billion subsidy, the cost of fertilizer could be lowered to Kshs. 2,000.

However, the National Assembly says it will factor in Kshs. 3 billion in the supplementary budget to subsidize fertilizer in the short term as the planting season begins.

MPs faulted Treasury for omitting the Kshs. 1.4 billion in the budget policy statement allocated to subsidize fertilizer.