Fertiliser Access and Cost in Kenya: The Challenge Undermining Smallholder Profitability

The current landscape#

The global fertiliser price spike triggered by the Russia-Ukraine conflict in 2022 hit Kenyan smallholder farmers with brutal force. The price of DAP (Di-Ammonium Phosphate) — the primary planting fertiliser for most Kenyan crops — rose from KSh 3,200 per 50kg bag in early 2021 to KSh 7,500 per bag at the 2022 peak. Although prices have partially moderated to KSh 5,200-5,800 in 2026, they remain 60% above pre-crisis levels at a time when many crop prices have not risen proportionately. For smallholders applying the agronomically recommended 50kg of DAP per acre at planting plus CAN for top-dressing, fertiliser now represents 40-55% of total cash input costs — a share that makes the economics of cereal farming marginal or negative at average yield levels.

Market dynamics and opportunity#

Three practical strategies are helping Kenyan farmers manage input costs effectively in the current environment. First, cooperative bulk purchasing: farmer groups that aggregate their fertiliser requirements and purchase as a single order from manufacturers like MEA Limited, YaraCare, or Mea Fertilizers at the beginning of the season receive discounts of 12-18% versus retail price — savings that effectively recover most of the cost increase. Second, the government's Fertiliser Subsidy Programme (FSP) — which provides a 50% government-funded subsidy on certified fertiliser for registered smallholders in targeted counties — has reached 800,000 farmers and is being expanded. Third, organic and bio-fertiliser alternatives are demonstrating comparable yield performance on soils with good initial fertility: vermicompost, AESA-recommended composting, and bio-stimulant products like GroBio and Ugatuzi Organics are gaining adoption, particularly among certified organic farmers who are barred from synthetic fertilisers.

Strategic implications for businesses#

The longer-term solution to Kenya's fertiliser challenge is increasing domestic production and blending capacity. Kenya currently imports 100% of its fertiliser despite having phosphate rock deposits in Mrima Hill in Kwale County that have been discussed for decades without development. The Kenya Fertiliser and Animal Feeds (KEFAS) strategy committed in 2024 to developing domestic fertiliser blending plants in Mombasa and Eldoret — reducing the import cost component that currently adds $80-120 per tonne versus imported blended product. For individual farmers navigating the current market, the most important tool is the KRA KPLC fertiliser tracker, which monitors retail prices at certified agrovets across all 47 counties and is accessible free via USSD code *233# — allowing price comparison shopping before purchase.

Before and after scenario#

A maize farmer in Trans-Nzoia applies the full recommended fertiliser rate on 3 acres, spending KSh 52,000 on inputs in 2025, but achieves yields that only cover input costs after sale — farming for zero net income in a year with average rainfall. After joining a cooperative bulk-purchase scheme, accessing a 50kg DAP subsidy bag, and substituting 25% of his synthetic nitrogen requirement with KARI-recommended compost from crop residues, he reduces input costs by KSh 18,000 per season — restoring profitable margins.

2026 market pulse#

Kenya's fertiliser import bill reached KSh 62 billion in 2025, 60% above 2021 levels. The government's Fertiliser Subsidy Programme reached 800,000 smallholders in 2025 but remained chronically underfunded relative to the 4.5 million eligible smallholder households.