Our Focus on Agri-inputs

Sector At A Glance

The Sector

Key agricultural inputs categories are fertilizers, seeds, farm equipment and agrochemicals
  • Kg's/H

Fertilizer Usage Per Hectare in 2012.

Kenya’s input use is low

With an average use of 44kg of fertilizer per hectare in 2012. In contrast, South Africa was at 62kg, India 164kg & Brazil at 182kg.

The Market

All agricultural inputs are distributed through a system of importers, wholesalers and retailers

75 Agrochemical Manufacturers

Over 7000 Agrovet Dealers

  • Imported
  • Local

90% Of Fertilizer Is Imported

11 major fertilizer imports account for 95% of 500,000T imports. 90% of fertilizer is imported with 10% being blended locally.

The Farmer

Key agricultural inputs categories are fertilizers, seeds, farm equipment and agrochemicals

The World Bank estimates that women make up 70% of Kenya’s farmers.

(Source: Gender in Agriculture Sourcebook, World Bank, page 16, Figure 1.4)

  • Commercial
  • Non Commercial

Only 50% of smallholder farmers participate in commercial farming.

70% use fertilizer and 30% use certified seeds.

3.5 million Smallholder Farmers

Kenya’s agriculture is predominantly smallholder farmers accounting to 3.5 million.

Farm productivity per Ha in Kenya is lower than the global average

Maize Production: Kenya Vs. Global Average

Maize production in Kenya is 1.6MT/Ha.

The global average is 6MT/ha.

Dynamics Of The Sector

General Supply Trends

Inputs Supply By Private Sector

Agricultural inputs supply is mostly driven by private sector, though in fertilizer, Government imports and distributes at subsidized prices.

Agricultural Inputs Availability

Agricultural inputs are only available in high agricultural potential areas and to large scale commercial farmers.

Information On Products

Inadequate flow of information on products’ use and benefits through the trade chain.

Quality Standards

Weak enforcement of inputs quality standards has led to proliferation of substandard products and counterfeits.

Financial Capacity

Lack of adequate financial capacity of traders to sufficiently stock for the peak periods.

General Demand Trends

Farm Productivity

Low farm productivity is calling for adoption of new technologies and innovations.

Growing Population

Growing urban population is increasing the demand for agricultural produce

Farmer Education

Increasing farmer education and discernment leading to demand for quality inputs.

Climate Change

Climate change impact and land fragmentation is driving the need for more effective agricultural inputs

Key Sector Challenges

Inputs Access & Use

  • Farmers lack information about right type of farm inputs, right application and right time of use.
  • Poor rural roads and other key physical infrastructure have led to high transportation costs for agricultural inputs and services.
  • Low agro-dealer investment in the rural areas.

Soil Degradation

  • Insufficient information on soil preservation practices causing land overuse and soil degradation.
  • Insufficient access to soil testing services to determine the soil nutrition, pests and diseases.

Extension Services & Technology

  • Limited access to extension services hindering faster adaptation of new farm practices.
  • Inadequate research and farmer linkages reducing access to new farming technologies.

Climate Change

  • Changing and unpredictable weather patterns greatly affecting rain-fed agriculture.
  • Varying climatic conditions causing an increase in pests and diseases.
  • Lack of information on farm-level technologies to address climate change challenges.

What Are Our Interventions?

Improve access and demand of quality agricultural inputs

Adoption of innovative trade inventory management systems

Enable commercialization of climate smart products and climate resilient agricultural inputs

Promote availability of affordable financial products for smallholder farmers and rural agro-dealers

Improve agricultural inputs market information

Adoption of innovative ways to pass on appropriate information across the supply chain

Adoption of ICT, improved marketing and customer service practices across agricultural inputs’ trade

Enhance application of quality standards

Advocate change of agricultural inputs packaging material taxation legislation to lower inputs prices

Promote enforcement of agricultural inputs quality control to reduce substandard products and counterfeits

Systemic Change Indicators

Agro-dealers

30% of trained agro dealers adopt improved business & customer management practices. Impact over 2,000 agro dealers in the next 5 years.

Large Companies & Service Providers

Large companies investing in improved distribution and farmer support. Service Providers make own investments to commercialize their services.

Maize Yields

Over 2 million farmers increase their maize yields from 1.6mt/ha to 3mt/ha.

Quality Inputs

Over 2.45 million farmers will be using quality inputs in 10 years. Over 3 million farmers will have improved access to inputs, usage & performance.

Innovations

35 large scale market actors adapt new ways of training and dissemination of information across the supply chain.

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