Middlemen infiltrate fertiliser subsidy, warn sector players

The ambitious fertiliser subsidy launched in Kenya almost three years ago has been infiltrated by middlemen, sector players say. This has left smallholder farmers at the pain of accessing the product at higher cost.

It is alleged that the prized commodity, whose initial plan was to help small-scale farmers improve their production through access to affordable fertiliser, could be benefiting large-scale farmers.

“There is an urgent need for a targeted fertiliser subsidy so that only deserving cases can reap its full benefits. As it is today, unscrupulous traders are diverting the commodity to those who do not really need it,” said Shem Odhiambo, the country director of Export Trading Group (ETG), a commodities and farm inputs supplier.

According to Mr Odhiambo, if ensuring the fertiliser reaches small-scale farmers would prove a tall order to authorities, then policymakers can adopt the Egypt model where the Government purchases produce from smallscale farmers at a relatively higher price without distorting the market fundamentals.

“As a matter of fact, generalised subsidy plan may fail in the long run,” he said, adding: “The private sector can also supplement the work of the Government in the supply of these fertilisers.”

This way, he says, Kenya would not be experiencing erratic food supplies, which has in the past years compelled the Government to import maize from other countries. This year, Mr Odhiambo says, the food security situation is a bit fluid despite the country having received ample rainfall. This is due to the fact that there were problems of farmers in Eldoret and Kitale, Kenya’s food basket, not applying the right fertilisers.

This means come end of the year, Kenya may not attain the 42-million bags of maize target. This sorry state has been worsened by the negative effects of the MNLD disease in some parts of the Rift Valley and the reduced cultivation of maize, particularly in the South Rift.

More worrying is the rise in post-handling losses which analysts say average about 50 per cent of the total harvests. This has been due to the fact that there are limited driers in the country to mitigate against the problem. “Most of the harvesting times in Kenya coincide with the onset of short rains. As a result, this increases moisture content of the harvests ultimately creating a conducive environment for Aflatoxin to thrive,” said Mr Mahesh Patel, ETG Chairman.

Mr Patel says since ETG’s prime customer is the smallholder farmer, they are in the process of setting up multiple driers across the country to shield farmers from the losses. “Upon drying them, we will transport and store them in our warehouses,” he said.