By John Oyuke
The Government is just one step away from fixing the perennial fertiliser shortage.
In a new policy, Government is seeking to attract investors to manufacture fertiliser locally in a bid to safeguard to food security.
It is estimated that Treasury spends close to Sh18 billion annually to import up to 500,000 tonnes of fertiliser. Moreover, farmers are said to have lost a cumulative Sh60 billion in over charge costs in the past five years.
A senior ministry of Agriculture official, who declined to be identified, said Government is analysing a feasibility study and interim reports on the study on local fertiliser manufacturing.
According to the official familiar with the development, the final report was to have been released before April 30 this year.
“A feasibility study on local fertiliser manufacturing has been conducted and a draft report on the same is being discussed,” a Senior Researcher at Tegemeo Institute, Egerton University, Francis Karin says.
The three-tiered report, dubbed ‘Streamlining of fertiliser cost and feasibility study’ looks at various options — including purchasing and supply chain improvements, blending as well as local manufacturing.
But even if the project takes off, this would not be the first time Kenya has tried its hands at setting up such a factory.
Kenren
The first attempt was in 1975, when the Government entered into a joint venture with N-Ren, an American firm, to set up KenRen Chemical and Fertilisers Ltd at the Coast.
KenRen was to manufacture fertiliser for domestic and export markets. It signed financing agreements with Austrian and Belgian banks and suppliers, with the Kenya Government as guarantor. The suppliers never delivered any equipment “except for some crates whose contents were not verified.”
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