Subsidies play a significant role in mitigating the economical curves. Subsidies are government grants given to a specific product or industry with the aim of making them affordable. Covid-19 caused an economic shock to the whole world. This clearly unmasked the contingent measures countries put in place without a proper execution plan. The Russian war as well affected different economies adversely, with Russia and Ukraine being significant exporters of fertilizers and wheat respectively.
Kenya was not an exception. Agriculture being the backbone of the economy, it saw the prices of fertilizers and wheat rising by 40% upwards. This outcry saw the new President of the Republic of Kenya, Dr. William Samoei Ruto, prioritize fertilizer subsidies in his inaugural speech. On 22/9/2022, Deputy President Rigathi Gachagua flagged off a consignment of fertilizers that are subsidized to different parts of the country. The following are the reviewed prices of the fertilizers that he flagged off;
- DAP fertilizer to Ksh3,500 from Ksh7,000
- CAN to Ksh 2,875
- NPK to Ksh 3,275,
- MOP to Ksh 1,775,
- UREA to Ksh3,500
- Sulphate of Ammonia 2,220.
This is will see to benefit the farming of 1.4 million acres. This brings joy to farmers, who use heavy fertilizers as the major farm inputs.
However, there have been questions on the sustainability of subsidies in Kenya and more on unavoidable consequences such as the Russian war which led to trade restrictions imposed on them.
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