Kenya agricultural input subsidy program

Following widespread crop losses caused by failed long rains, Kenyan President William Ruto pledged to lower the prices of fertilizer and certified seeds to assist farmers in recovering. The initial plan included strategic subsidies, expanded irrigation projects via a National Infrastructure Fund, and measures to crack down on counterfeit fertilizer.

By late August, the government formalized these reductions. Agriculture Cabinet Secretary Mutahi Kagwe announced that the price of a 50kg bag of subsidized fertilizer would drop from Sh2,500 to Sh2,000. Additionally, the government committed to covering 50% of the cost of certified maize seed, reducing its price from Sh300 to Sh150 per kilogramme. This reduction applies to various packaging sizes, including 2kg, 10kg, and 25kg packs.

The maize seed intervention is expected to cover approximately 40 million kilograms of seed at an estimated state cost of Sh6 billion. These measures represent a strategic shift from subsidizing consumption to subsidizing production, aiming to lower production costs, improve productivity, and strengthen national food security. The government intends for farmers to access these inputs through designated distribution channels to prepare for upcoming planting seasons.