Experts are warning that prices for basic commodities like sugar, coffee, and tea are likely to rise in the near future.
This comes after agricultural stakeholders proposed the re-introduction of levies on certain cash crops to help fund a vital government program.
Although the government allocated Ksh10 billion for fertilizer subsidies in the current financial year, stakeholders argue that this amount is insufficient to cover the increasing demand.
As a result, they are calling for taxes on crops like sugar, coffee, and tea to be reintroduced, with the additional funds being channeled into the fertilizer subsidy program.
The main goal is to find a more sustainable way to fund fertilizer for farmers. Eng. Laban Kiprotich, the Agriculture Engineering secretary, explained that the stakeholders are exploring various avenues to raise the necessary funds for the fertilizer program.
He emphasized that taxing crops like sugar, coffee, and tea could be a viable option, ensuring that any extra revenue generated would be reinvested into agricultural inputs.
However, experts are also urging the government to reconsider some existing taxes on fertilizer companies, as they believe these taxes increase the cost of production and ultimately hurt farmers in the short term.
Dr. Clement Breisinger, a program leader at the International Food Policy Research Institute (IFPRI), pointed out that excessive agricultural taxes and levies can have negative effects on farmers’ financial health.
IFPRI is renowned for its research-based policy solutions and close partnerships with government ministries. The organization aims to bring about positive changes in agriculture, nutrition, and social protection in Kenya.
Their work also emphasizes sustainable farming practices, including the use of organic fertilizers, efficient land use, and intercropping techniques to boost agricultural productivity.
The fertilizer subsidy program is a key part of the Kenya Kwanza government’s plan to enhance food security and improve access to quality food for Kenyans.
As part of preparations for the 2025 long rains season, the government has already procured 7.4 million bags of fertilizer, with most of it expected to reach distribution centers by mid-January 2025.
Distribution will start at the end of January, ensuring that farmers will have the resources they need ahead of the rainy season in March.
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