Fertilizer cost reduction

The Kenya Vision 2030 has identified productivity increases as one of the key drivers of a modern agriculture. The Vision identifies high cost of fertilizers as key constraint in agricultural production. It proposes three tier fertilizer cost reduction strategy comprising of: bulk procurement of fertilizer, domestic fertilizer blending and packaging; and Support establishment of a manufacturing plant for national/regional fertilizer requirements, Co-operatives societies have traditionally been useful in facilitation aggregating members’ input requirements and then purchase centrally in order to create economies of scale and save costs to individual members. Secondly co-operatives institutions (e.g. KPCU, KFA, and District Co-operative Unions) have extensive supply stores throughout the country that could be useful in improving to inputs by the producers.

In this respected the Ministry has initiated the process of forming a nationwide inputs distribution cooperative as well as identifying and restructuring some viable District Unions and is seeking Public Private Partnerships towards injection of fresh capital into these cooperatives to enable them to efficiently and effectively carry out the input procurement and distribution/supply function. The Ministry during the period registered a union Kenya Farmers Cooperative Union (KFCU). The institution is to handle bulk purchase and distribution of the fertilizer and other farm inputs in order to make it affordable to farmers.

Contacts

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  • P.O. Box 30418-00100, Nairobi, Kenya
  • Telephone: +254 20-2731531
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