"Smart'' targeting of fertilizer subsidies in Kenya: Productivity, welfare, and soil health

Fertilizer subsidy programs in the Global South often juggle competing policy objectives of maximizing aggregate production and providing social protection for the poorest households. Using 2026 survey data from 3105 Kenyan households paired with parcel-level soil tests, this paper evaluates the targeting performance of Kenya’s National Fertilizer Subsidy Program (NFSP). Specifically, we analyze the extent to which the current “de facto” targeting—driven by digital registration and e-vouchers—aligns with these possibly conflicting policy goals. We find that the subsidy recipient populations who would maximize productivity do not tend to include the poorest and most vulnerable farmers. Furthermore, the current pool of NFSP beneficiaries shows limited overlap with the ideal beneficiaries for either policy objective. Among those who we would ideally target, we find that factors such as mobile phone ownership and knowledge of fertilizer recommendations may help predict which households actually receive benefits. We conclude that integrating soil testing into subsidy frameworks could significantly reduce these inefficiencies and improve the alignment between program delivery and national agricultural goals.