Kenya commodity import program

A total of $45 million in foreign exchange will be provided for the import of fertilizer. Local currency generations will be used for mutually agreed upon development purposes and for a trust fund to cover USAID/K"s operating expenses. The GOK covenants to: (1) study the feasibility of decontrolling fertilizer prices and develop a pricing policy on the basis of this assessment; (2) prepare annual fertilizer import plans and streamline import licensing for the private sector; (3) promote fertilizer use through farmer education, appropriate packaging, and price incentives for agricultural production; (4) strengthen its capacity to conduct price analysis and monitoring of fertilizer market developments; (5) undertake studies on the environmental impact of fertilizer use; and (6) take steps to eliminate price controls and quantitative restrictions on fertilizer imports. Complementary funds ($1.1 million) will be provided for short-term TA, policy studies, training, evaluation, and monitoring.