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Government reverts to e-vouchers for fertiliser subsidy

Move expected to weed out middle men.

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by JACKTONE LAWI

Business12 December 2022 - 13:30
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In Summary


  • •According to the head of state The government, working with the private sector and has engaged suppliers to import 300,000 metric tonnes (6 million bags) of fertiliser.
  • •The President said that that the e-vouchers will tame misappropriation of the programme caused by middlemen and brokers.
Small-scale farmers collecting subsidised fertiliser at NCPB depot in Eldoret on April 22, 2022

The government is planning to offer subsidy programmes via e vouchers in an effort to weed out middle men in the fertiliser business.

Over the-years powerful operatives have managed to infiltrate the supply value chain and frustrated the subsidy programmes leaving smallholder farmers at the pain of accessing the product at higher cost.

The government had in 2020 rolled out the e-voucher programme in a pilot phase, but it was only directed to small-scale farmers in selected counties who received money through their mobile phones to purchase the farm inputs from approved agro vets.

President William Ruto in his first Jamhuri Day celebration said that that the e-vouchers will tame misappropriation of the programme caused by middlemen and brokers.

This is among a raft of measure that the government is racing to implement in its digitisation Journey.

“We intend to transfer 85% of the remaining government services to the digital space so that every Kenyan doesn’t have to queue in any line to access government services,” said Ruto.

According to the head of state The government, working with the private sector and has engaged suppliers to import 300,000 metric tonnes (6 million bags) of fertiliser.

A consignment of two million bags has already landed at the port of Mombasa, and the remaining 4 million will arrive in the first week of January in time for the long rains.

The government had committed to deliver subsidy on fertiliser to 1.3 million farmers.

“The government will continue to subsidise the price of fertiliser and farmers will buy at Sh3,500 a bag,” said Ruto.

The National Treasury had allocated Sh3.6 billion to subsidise the farm inputs for the short-rain planting season.

“Our farmers are now ready to give Kenya a bumper harvest, improve food supply and drive down the price of food, the single biggest driver of the cost of living. They will achieve these goals using affordable fertiliser and certified seeds,” added Ruto

Last month, the President said Kenya has entered into an agreement with a multinational firm to fast-track the development of affordable green fertiliser.

Ruto said under the pact, Fortescue Future Industries and the government will work together to build a 300MW capacity generation green ammonia and green fertiliser facility by 2025.

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