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 An action plan for
Developing Agricultural Input Markets in Kenya was prepared by a team
led by Dr. Balu L. Bumb, IFDC Principal Economist. The team visited
with more than 200 stakeholders in Mombasa, Machakos, Kitale, Sauri
(Millennium Development Village), Kisumu, Nakuru, and other areas. The
action plan identified constraints in the areas of soil fertility,
policy environment, human capital, finance, and other pillars of and
supporting conditions for market development. Recent governmental
interventions and entry of parastatal have created anxiety in the
market. Dealers and stockists lack technical and marketing skills and
are constrained by limited access to finance. High transportation costs
from port (Mombasa) to consuming areas in western Kenya add
significantly (more than $50/ton) to fertilizer prices. Strengthened and
increased use of railway transport can help to reduce transportation
costs. Currently there is no unified fertilizer law in the country;
thus, quality control regulation is fragmented and poorly implemented.
Whereas improvements are needed in all
areas related to the Five Pillars of Market Development, the Government
of Kenya should also address the creation of market-friendly safety nets
and the issues related to soil acidity and infertility. The action plan
will be validated at a stakeholders’ workshop in August 2005.
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Market & Trade Policy --->
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