Fertilizer Prices Expected To Increase to Ksh.7K Due To Russia-Ukraine War
The cost of fertilizer is expected to rise to over Ksh.7,000 for a 50kg bag due to the ongoing tension between Russia and Ukraine. The report given by Cabinet Secretary Peter Munya stated that Kenya imports fertilizer from China and Russia, and the invasion by Russia is likely to affect the supplies globally.
“We get most of our fertilizer from Russia and China and this war may see the price of fertilizer hit Sh7,000 if there will be no subsidy in place,” Munya told Parliament on Tuesday.
The cost of fertilizer currently stands at Kshs 6,000 for a 50kg bag, which was attributed to high fuel prices of natural gas in Europe, which led to a reduction of production by some states. For this reason, CS Munya said the Ministry needs at least Ksh31.8 billion for the subsidy, which could lower the cost of planting fertilizer (Diammonium Phosphate) to Ksh.2,800. The Business Daily reported on Wednesday that the Parliament said it would allocate Ksh.3 billion in the supplementary budget towards addressing the high fertilizer costs.
Under the current budget, fertilizer was factored in for coffee and tea farmers only, which caused an uproar from maize farmers. Munya was on Tuesday directed by the parliamentary committee to come up with a budget that can be used to lower the cost of fertilizer before the supplementary budget is tabled and was expected to give a response before the end of Tuesday.
Tags: Agriculture Finance Corporation Government Of Kenya
