KENYA FERTILIZER MARKET

Kenya Fertilizer Market is well developed and it is estimated to grow at a CAGR of 3.5% during the forecast period.

Agriculture is the pillar of Kenya’s economy expansion and also contributes significantly to the labor force which employs over 40% of the overall population. As agriculture plays a fundamental role in the country, fertilizer as the key component in this sector also observes a substantial growth.

However, since in early 2022 Russia invaded Ukraine, there has been a surge in Kenya’s fertilizer prices by 30 percent. Kenya procured around 758,000 metric tons of chemical fertilizers through import in 2021 in which farmers should pay around USD 35 for a 50 kg bag of fertilizer. As Kenya heavily dependent on Russia to supply its fertilizer consumptions, Kenya must search for alternative suppliers following Russian export sanctions. This can be an opportunity for other countries or organizations who want to take up the vacancy to supply fertilizers in the country.

Major Kenya Fertilizer Market Drivers and Emerging Trends

The government initiatives provide a significant impact to the growth of Kenya fertilizer market. The private sector is now allowed to acquire fertilizer elements from abroad for domestic blending for specific crops. In addition, the government is also promoting investment from the private sector to build fully operational fertilizer manufacturing plants in Kenya. In collaboration with the US Agency for International Development, the government partners with one thousand agrovets and ten thousand farmers across 47 counties to enhance crop production. These initiatives will enhance the market growth in the near future.

 The Kenyan National Fertilizer Subsidy Program has also been launched to increase food production and to address the surge of food prices. With a subsidy of USD 23 million, this program aims to minimize agricultural production expenses and thereby reduce food prices.

Furthermore, the Africa Fertilizer Financing Mechanism is set to provide USD 2 million partial trade assurance as well as USD 219,000 financial aid to an agricultural company in Nairobi. This support aims to accelerate the distribution of more than 7,000 tone of fertilizers to hundreds of thousand farmers in Kenya, which will further drive the growth of this market. However, the limited access for smallholder farmers to access fertilizer funding and the low adoption rate of agricultural technologies including fertilizers, may hamper the growth of fertilizer market in Kenya over the coming years.

Segments covered in the Report:

The Kenya Fertilizer Market has been segmented on the basis of product, application, and form. Based on product, the market is segmented into organic and non-organic. The organic segment is further divided into animal-based, plant-based & mineral-based. The non-organic segment is further divided into phosphorus, nitrogen & potassium. Based on application, the market is segmented into agriculture, gardening, horticulture, and others. Based on form, the market is segmented into solid, liquid, powdered, and gaseous.

Market Segmentation

Kenya Fertilizer Market by Product

• • Organic
    • Animal-based
    • Plant-based
    • Mineral-based
  • Non-Organic
    • Phosphorus
    • Nitrogen
    • Potassium

Kenya Fertilizer Market by Application

• • Agriculture
  • Gardening
  • Horticulture
  • Others

Kenya Fertilizer Market by Form

• • Solid
  • Liquid
  • Powdered
  • Gaseous