Agriculture Cabinet Secretary Mithika Linturi Monday shed light on the government's fertilizer subsidy program, disclosing key details during his appearance before the MPs.
Linturi stated that the government has contracted 10 suppliers to procure and distribute fertilizer under the initiative at a total cost of Sh4.1 billion for the short rains and an additional Sh1.2 billion for the long rains.
Addressing concerns about SBL Innovative Limited’s involvement in the program, Linturi clarified that the company is not part of the selected suppliers.
Instead, he revealed that the company has been distributing a soil conditioner through the National Cereals and Produce Board (NCPB) network.
The soil conditioner, he explained, is not included in the subsidy program but was being distributed through NCPB stores under a separate deal initiated on March 31, 2022.
“There is no fertilizer under the subsidy program being distributed by the company. But, it is important for the committee to note that it is not fertilizer per se, I am told it is a soil conditioner being distributed through our NCPB network,” he explained.
"The agreement the company had with NCPB was signed even before this administration came in," he added.
According to Linturi, NCPB is a commercial wing and any company or manufacturer of such commodities that meets certain standards can use to distribute it.
In exchange, the particular company or manufacturer pays a commission to NCPB.
“NCPB is not funded by the exchequer. It does business and they make money to run their operations,” he said.
The CS who was accompanied by other top officials from KePHIS and NCPB also stressed that the government has no intentions of getting the soil conditioner from the particular company as part of the subsidies to the farmers.
Concerning the number of farmers who obtained the said soil conditioners from the NCPB stores, Linturi said this could not be established as it was being distributed through other channels.
“NCPB was acting just like any shopkeeper where any farmer would get in and buy and go,” he said.
He, however, revealed that the total bags that went through the NCPB depots were 70,143 bags.
Linturi further disclosed that the government has so far paid out Sh8.9 billion for the subsidy program since it was launched.
He said in the 2021-22 financial year, Sh1.5 billion was released and another Sh2.5 billion was paid in 2022-23.
