The government is holding talks with Japanese firms Toyota Tyusho and Maruben over putting up a fertiliser plant in the country. FILE
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The two, Toyota Tyusho and Maruben, were among four international companies shortlisted to establish a plant expected to ensure adequate and steady supply of the plant nutrient.
Agriculture secretary Felix Koskei said the government was moving with speed to ensure that the project is implemented within the set time frame.
The government is negotiating with two Japanese firms that expressed interest in building a fertiliser manufacturing plant in Kenya.
The two, Toyota Tyusho and Maruben, were among four international companies shortlisted to establish a plant expected to ensure adequate and steady supply of the plant nutrient.
Agriculture secretary Felix Koskei said the government was moving with speed to ensure that the project is implemented within the set time frame.
“We expect the first phase to be completed in 2016 with the production of the Nitrogen Potassium Calcium (fertiliser),” said Mr Koskei.
Mr Koskei said the government would increase the fertiliser subsidy from 150,000 tonnes to 300,000 tonnes at a cost of Sh6 billion before the plant is operational.
The estimated maize shortage of 7.4 million bags has been attributed to late supply of subsidised fertiliser last year.
“Depressed production of some crops such as maize was as a result of late distribution and inadequate access of subsidised fertiliser,” Mr Koskei said.
He added that fertiliser would be shipped into the country every two months to ensure steady supply.
The ministry has been allocated Sh3 billion per year for buying fertiliser under the Medium Term Expenditure Framework. Mr Koskei said the money for this year would be used to establish a revolving fund.
“We will no longer wait for the budget from the Treasury to import fertiliser. The money we get from the sales will be directed to the purchase of more, with the government only coming in to fill the subsidy amount,” Mr Koskei said.
The National Cereals and Produce Board (NCPB) imported 22,000 tonnes of fertiliser this month meant to cushion farmers against the high cost of farm inputs during the next planting season. NCBP intends to import an additional 78,000 tonnes in coming months.
A 50 kilogramme bag of subsidised DAP fertiliser sells at Sh2,480 at NCPB deports and Sh3,500 at private stockiests.
The development comes against a backdrop of a Bill sponsored by Kimilili MP Chris Wamalwa that, if enacted, would see NCPB stripped of its role in the distribution of fertiliser.
The Fertiliser and Animal Foodstuff (Amendment) Bill 2013 proposes the creation of a new body to oversee the putting up of a manufacturing plant, distribution and availability of fertiliser across the country.
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