William Ruto's Fertiliser Subsidy Programme To Continue Against World Bank Recommendation

• The Kenyan government will continue to provide subsidised fertiliser at KSh 2000 per bag
• The government will also proceed with the purchase of maize at Ksh 4,000 per 90kg bag from local farmers
• The World Bank had recommended that the government needed to remove the subsidy

Elijah Ntongai, a journalist at TUKO.co.ke, leverages more than three years of expertise in financial, business, and technology research, providing profound insights into both Kenyan and global economic trends.

Kenya's Minister for Agriculture, Mithika Linturi, announced the government, under President William Ruto's leadership, is set to continue with the distribution of subsidised fertilisers across the country.

This decision stands in direct contrast to the World Bank's recommendation outlined in the Kenya Poverty and Equity Assessment 2023 Report, released on December 12.

Mithika Linturi's announcement

During a ceremony held at Amwamba Primary School in the Akachiu Ward in Meru, Linturi confirmed that the government plans to continue the distribution of subsidised fertiliser countrywide at a fixed cost of KSh 2,000.

""We will will continue distributing subsidised fertiliser countrywide at a cost of KSh 2,000 as well as proceed on with the purchase of maize at Ksh 4,000 per 90kg bag from local farmers," Linturi said on X.

A World Bank recommendation

The World Bank report advocated a strategic shift away from input subsidies as part of efforts to eliminate government interference in the market and emphasised investments in crucial infrastructure, research, and development.

"Shift away from input subsidies to farmers and towards removing market distortions, investing in key infrastructure, and research and development. Swapping vouchers for inputs with vouchers for an equivalent amount of cash can also allow poor households to make efficient planting and investment decisions tailored to their asset endowments.

Domestic fertiliser prices are subject to global conditions, and the promotion of local (or within Africa) production of fertiliser potentially offers a less distortionary way to make this input affordable," the World Bank stated.

The divergence in strategy between the government's commitment to subsidies and the World Bank's proposal underscores a potential policy clash, leaving stakeholders and observers awaiting further insights into the administration's agricultural agenda.

Man steals 4,304 bags of subsidised fertiliser.

In other related news from TUKO.co.ke, a Kenyan man was taken to court for defrauding the government in the fertiliser subsidy programme.

Appearing before the Milimani Law Courts on Thursday, November 9, Benjamin Kuto pleaded not guilty to defrauding Ministry of Agriculture officials of fertiliser worth KSh 10.7 million.

The farmer from Moiben, Uasin Gishu County, was accused of receiving the subsidised fertiliser based on the wrong information he provided.