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An assessment of the effect of a national fertiliser subsidy programme on farmer participation in private fertiliser markets in the North Rift region of Kenya

Author

Listed:
  • Makau, Joyce Mumbua
  • Irungu, Patrick
  • Nyikal, Rose Adhiambo
  • Kirimi, Lilian Wambui

Abstract

This study evaluated the effect of the national fertiliser subsidy on farmer participation in commercial fertiliser markets in the North Rift region of Kenya. The study used primary data collected from 710 households. A double-hurdle model and descriptive statistics were used to analyse the data. The results show that the national fertiliser subsidy reduces farmers’ probability of participating in commercial fertiliser markets by 30%. On average, an additional kilogram of subsidised fertiliser displaces 0.2 kg of commercial fertiliser from the market. This implies that the national fertiliser subsidy has a displacement effect on commercial sales. The government therefore should consider changes in programme design and implementation by distributing subsidised fertiliser to areas with weak commercial fertiliser distribution networks. In addition, proper targeting of resource-poor households is recommended if the programme objectives are to be achieved.

Suggested Citation

  • Makau, Joyce Mumbua & Irungu, Patrick & Nyikal, Rose Adhiambo & Kirimi, Lilian Wambui, 2016. "An assessment of the effect of a national fertiliser subsidy programme on farmer participation in private fertiliser markets in the North Rift region of Kenya," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 11(4), pages 1-13, December.
    • Handle: RePEc:ags:afjare:252459
    DOI: 10.22004/ag.econ.252459
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    References listed on IDEAS

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    Cited by:

    1. Dennis Kimoso Mulupi & Mose P. B Ph.D & Kenneth Waluse Sibiko Ph.D, 2021. "Subsidized Fertilizer Utilization and Determinants among Small-scale Maize Farmers in Kakamega County, Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(11), pages 614-622, November.
    2. Pradyot Ranjan Jena & Hugo Groote & Bibhu Prasad Nayak & Annina Hittmeyer, 2021. "Evolution of Fertiliser Use and its Impact on Maize Productivity in Kenya: Evidence from Multiple Surveys," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(1), pages 95-111, February.

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