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From Russian Businessmen to Adverts: Kenya Seeks Fertilizer Investors

From Russian Businessmen to Adverts: Kenya Seeks Fertilizer Investors

Most of the imported fertilizer is used during the planting season. In 2012, some 300,000 mega tons were used during the March-April planting season. A further 150,000 mega tons was used for top-dressing. The biggest consumers are cereals, which consume about 150,000MT, followed by horticulture – which takes up about 65,000MT.

Tea and coffee farmers are also major fertilizer consumers, with the former using about 50,000MT and the latter 40,000MT per year. The high usage of fertilizer in horticulture, tea and coffee sub-sectors has boosted the industries, making them major foreign exchange income earners for the government.

The major sources of fertilizers are the U.S., Europe, the Middle East, Asia, and South Africa. Other entrants are China, India and Singapore. The major American fertilizer exporters to Kenya are Aerostar Global Logistics, Maas Nursery, and Woodburn Fertilizer Inc.

The report noted that sub-Saharan African countries are the lowest fertilizer users in the world. Kenya, however, is among sub-Saharan countries with the highest fertilizer user rates.

Three factors largely determine the use of fertilizers by Kenyan households: product availability, affordability, and expected returns (input-output ratio). According to Alfred Githege, an agricultural extension officer based in Kiambu County, availability of information on benefits, use and recommended ratios of fertilizer also determines fertilizer usage among farmers.

The report grouped fertilizer users into three classes; the consistent users (uses one type in four different waves), the non-consistent users (on-and-off user), and consistent non-users (never used fertilizer at all). Under the consistent non-user category, the study noted that these households are mostly headed by women — the head of the household is above 65 years old and has only attained a few years of formal education.

MEA Fertilizer, the largest local importer, distributor and blender of fertilizers, has been importing the commodity from these manufacturers. Eustace Muriuki, the firm’s managing director, says that the government’s call for investment partners to put up a fertilizer manufacturing factory locally may be expensive in the short term.

“Lack of raw materials for manufacture of fertilizers will frustrate these efforts since all the raw materials have to be imported,” he said.

The government’s initiative to remove controls and import licensing quotas has encouraged investors involved in the importation of fertilizers. The government has also scrapped duty and Value Added Tax (VAT) on the commodity, further encouraging its use by farmers.