USAID/Kenya fertilizer marketing development program impact study : final report

External evaluation, covering the period 1983-1988, is based on a survey of farmers, importers, and retailers. The program - which provided Kenya with 134,301 MT of fertilizer worth $39 million and promoted trade liberalization and other policy reforms by the Government of Kenya (GOK) - contributed to significant increases in fertilizer availability in appropriate packaging and at more competitive prices. As a result, fertilizer use and knowledge have increased, especially among small farmers. About 40% have improved access to fertilizer and 43% can now obtain supplies within a kilometer of their farms. About 95.5% of farmers use fertilizers regularly, while about 55% report increased use. About 85% report increased fertilizer knowledge and 73% are aware of various fertilizer types and uses. About 91% reported that fertilizer use increased their yields. Moreover, a viable commercial fertilizer marketing system is beginning to take form. While 85% of farmers obtained fertilizer from a single GOK-supported supplier 4 years ago, only 47.1% use this supplier now. The number of fertilizer retailers in rural trading centers and the involvement of cooperative unions in fertilizer distribution have increased markedly. Importers are now capable of applying competitive methods of procurement and about 92% are better able to plan their import needs. As a result, about 35% of retailers and 43% of importers report profit increases. Third, the program has helped the GOK to develop a national fertilizer policy and to improve its procedures for estimating fertilizer requirements and for monitoring stock levels, sales, and the performance of importers. The program has also assisted in establishing the Kenya National Fertilizer Association and an agency to ensure immediate transport of fertilizer shipments. In addition, USAID/K has improved coordination of donors, which have increased from 4 countries (21,548 MT) in 1983/84 to 11 countries (140,000 MT) in 1988. Several constraints to a viable commercial marketing system remain, however. (1) The supply of fertilizer aid-in-kind, which necessitates GOK involvement in fertilizer management, should be replaced with other forms, such as balance of payment support, in order to maximize private sector control of fertilizer markets. (2) Allocations to end-users have taken away the large-scale sector from private distributors and left them with the less profitable smallholder market segment. (3) Price control remains a major constraint. The GOK has not been able to announce fertilizer selling prices on time, often resulting in insufficient importation. (4) Rural retailers lack access to an effective credit system.