Nairobi, Kenya – The government has increased the fertiliser subsidy funding to support farmers in improving their productivity.
President William Ruto approved the KSh 3.93 trillion Supplementary Budget (No.3) for the fiscal year 2023/2024.
How much is Ruto’s subsidised fertiliser?
The Budget assented to on Thursday, November 23, saw Ruto’s fertiliser subsidy programme receive an additional funding of KSh8.25 billion.
In August 2023, the government launched the second phase of the fertiliser subsidy that saw farmers access the farm input at a reduced price of KSh 2,500 per 50kg bag.
The head of state noted that the programme is the only solution to the high cost of living, anticipating a bumper harvest to ensure food stability.
In the budget allocation, Ruto set aside KSh 2.1 billion for post-harvest management aimed at helping farmers dry, store and sell their produce at fair market price.
Maize and unga prices in Kenya
The money will supplement the government’s budget for buying maize from Kenyans at KSh 4,000 per 90-kilogramme bag.
Farmers have been crying foul of market price fluctuations that have seen middlemen buy maize at KSh 3,000 per 90kg bag.
However, with the new published prices, farmers can sell to the National Cereals and Produce Board (NCPB) and avoid exploitation from brokers.
The interventions have seen unga prices in the country drop to below an average of KSh 150 per 2kg packet, compared to KSh 230 retail price during a similar period under review in 2022.
A spot check by News 9 Kenya showed a 2kg packet of Soko maize flour retailed at KSh 130 at Naivas Supermarkets, an offer price of KSh 164.
Other brands retailed between KSh 149 and KSh 159, representing a significant drop in the prices of the country’s staple food product,
Other beneficiaries are the sugarcane farmers after the Treasury allocated an additional KSh 1.7 billion and coffee farmers who received KSh 4 billion more.
Sugar prices have been on the rise due to a shortage in local production after the government halted production to allow cane farms to grow.
A kilo of sugar currently retails at an average of KSh 230 across different retail shops in the country.
Coffee farmers have a reason to smile after the allocation saw prices increase from KSh 20 to KSh 80 per kilo.
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