In measures announced to further increase food production, President William Ruto said the Government has set aside Kshs 10 billion to provide loans to farmers at a single digit.
He said the reduction of the prices of fertiliser took effect from Tuesday (yesterday).
President Ruto asked farmers to take advantage of the gesture to double the use of fertilizer for improved results.
He noted that yesterday, alone, 34,000 bags of fertilizers were sold after the prices were reduced to Sh 2,500 per 50 kg bag.
“It’s impressive that farmers have taken advantage of the move by Government to subsidize the cost of production to engage in serious farming activities,” President Ruto said.
He maintained that increased production was the only way to reduce high cost of living in the country.
President Ruto praised farmers for utilizing the current rains and the subsidized cost of production to produce more food.
“Our farmers have gone beyond the call of duty to carry out a phenomenal job in making our country food secure through increased production,” said President Ruto.
He said the move by the Government to subsidize fertiliser to lower the costs of production has yielded fruits.
President Ruto said the Government was committed to lowering the cost of food production by empowering farmers to produce at affordable rates and earn better returns.
The Head of State, at the same time, disclosed that the Government was increasing the budget for the Agriculture Finance Corporation (AFC) from Kshs 2 billion to Kshs 10 billion.
He said the move would facilitate affordable credit available to farmers.
“The credit will be provided at single digit rates to further reduce our cost of production and enhance the productivity,” he said.
The President made the remarks during a press briefing, held at State House, Nairobi, on Wednesday.
Present were Deputy President Rigathi Gachagua, Prime Cabinet Secretary Musalia Mudavadi, Agriculture Cabinet Secretary Mithika Linturi, chairperson of Council of Governors Anne Waiguru and Governors Susan Kihika (Nakuru), Ken Lusaka (Bungoma) and Stephen Sang (Nandi).
Meanwhile, President Ruto announced that the Government was implementing a national initiative to acquire 100 driers, which will be distributed strategically to various NCPB depots nationwide to serve maize farmers at subsidised and highly affordable rates.
“It is our initial and primary intervention to mitigate post-harvest losses, which usually claim as much as 30 per cent of produce harvested, especially with the onset of expected El-Nino rains in the October, November-December season,” he said.
He said the Government was also maximising farmer returns from their produce by likewise removing brokers, middlemen, conmen and other intermediaries, as well as other perennial marketing challenges related with cereals and pulses.
Furthermore, the President said his administration has done away with the policy of subsidising consumption in favour of subsidising production, saying it was now yielding fruits.
He maintained that the move by his administration to instead, invest in agriculture, the country’s biggest employer, largest contributor to the GDP and the mainstay of the rural economies was in the right direction.
President Ruto observed that because arable land in Kenya is limited, and the population has increased over the years, the only way to increase agricultural productivity is through the use of high quality inputs and, in particular, fertiliser.
President Ruto also assured sugarcane and coffee farmers that reforms were being carried out in the respective sectors to rid out cartels frustrating their efforts to improve their lives.
“We are streamlining these sectors to weed out cartels frustrating farmers efforts to increase productivity,”said President Ruto.