State to expand inputs subsidy plan for farmers

The Ministry of Agriculture will expand inputs supplies to farmers under the e-voucher programme to 25 more counties from the current 12, which saw the government provide 40 percent of the total cost of seed and fertiliser to growers.

The government started the e-voucher programme last year in 12 counties and farmers have so far redeemed receipts worth Sh654 million in the last main crop with over 17,000 growers benefitting from government-backed subsidy programme.

The government contributed Sh261.7 million while farmers paid Sh392.6 million in order to access the farm inputs from selected agro-dealers.

“We are targeting additional 25 counties and the initial 12 in the short rain 2021 starting September 6,” says the ministry.

The Ministry of Agriculture says 54,000 vouchers were redeemed during the exercise that has been running for over a year now after the government stopped the previous subsidy programme that would see the State supply fertiliser through National Cereals and Produce Board.

Under this programme, farmers are issued with the e-vouchers through their mobile phones after validation by extension officers. They will then be given a pay bill number to make payments and receive a text message confirmation from Safaricom.

Farmers then take the message to registered agro dealers and get the farm inputs they require during planting season. Once a farmer's payment has been made, it triggers the government side that supports this programme, which then pays the balance to ensure the agro dealer gets a hundred percent of the total amount needed for a given input.

Through this programme, the farmer pays 40 percent of the entire cost with remainder to be met by the government. This is part of the wider plan by the government to address the challenge of low yields.

The government has been implementing a fertiliser subsidy for the last 12 years. The previous scheme model was inefficient and largely public sector-driven in the importation, storage and distribution through NCPB.

This model faced some challenges including high cost to government, at approximately Sh5 billion per year and has been characterised by inefficiencies in its delivery and management.

The subsidy programme has previously focused mainly on fertiliser and less on other inputs thereby compromising the potential gains from a combination of various inputs (fertiliser, seeds, agrochemicals and other planting and stocking materials).

The programme will expand to other crops such as sugar cane, coffee and Irish potatoes unlike previously when it primarily targeted maize farmers.