Kenya has a long history of implementing fertilizer subsidy programs to support smallholder farmers. These initiatives have evolved over time, including the National Fertilizer Subsidy Programme (NFSP) implemented in 2022 to boost food production and stabilize prices amidst global supply chain disruptions. The NFSP provides subsidized fertilizer to registered farmers based on their landholdings.
Researchers have assessed the impact of the NFSP on farm productivity, finding that it significantly enhances maize yield among participating farmers. However, challenges hinder effective participation, such as financial constraints, information gaps, and logistical issues. Disparities in adoption exist based on factors like land size, household characteristics, and education levels.
The exclusive distribution of subsidized fertilizer through the National Cereals and Produce Board poses a risk of crowding out the private sector. To maximize the impact of fertilizer subsidy programs, it is crucial to address barriers to participation and optimize distribution networks. These programs can contribute to poverty reduction and economic transformation in Kenya by fostering sustainable agricultural growth and inclusive development.
Targeted interventions are essential for maximizing the potential of fertilizer subsidy programs. Policymakers should focus on improving access to information, enhancing financial support mechanisms, and optimizing distribution networks. For economic sustainability, the program design should address concerns about crowding out the private sector. A cost-benefit analysis is recommended to ensure that scarce public resources are used wisely.