Rethinking Fertilizer Subsidies in Kenya: Towards More Inclusive and Sustainable Models

By: Hailemariam Ayalew, Faith Kimaiyo, Sally Kimathi, Michael Keenan, and Clemens Breisinger

Fertilizer subsidies have played a prominent role in Kenya’s agricultural policy since 2007, helping farmers reduce production costs and improve yields. From early programs like the National Accelerated Agricultural Input Access Program (NAAIAP) to the current National Fertilizer Subsidy Program (NFSP), the government has invested heavily to make fertilizers affordable and accessible. While these efforts have delivered some important gains—especially during global disruptions like the Russia-Ukraine conflict—the system still faces significant challenges. Inadequate attention to soil health, limited private sector engagement, and limited integration with broader agricultural support systems have often undermined the full potential of these subsidies.

Recognizing the need for a fresh approach, IFPRI, the CGIAR Policy and Innovations Program, and GIZ, in partnership with the Ministry of Agriculture and Livestock Development (MoALD), convened a high-level workshop in early 2025. The event, titled “Reimagining Fertilizer Subsidies: Building Sustainable and Inclusive Models for Kenya’s Agricultural Future,” brought together over 57 stakeholders, including government officials, researchers, private sector actors, development partners, and farmer representatives. The workshop aimed to take stock of past experiences, identify critical bottlenecks, and co-develop alternative models informed by both national realities and international best practices.

Several priority areas emerged from the discussions. Stakeholders highlighted the need for stronger institutional coordination and governance, which would help reduce delivery bottlenecks and increase accountability in subsidy management. Without clear roles and seamless inter-agency collaboration, even well-designed systems can falter in implementation. Further, there was widespread support for integrating soil health diagnostics and climate-smart agriculture principles into fertilizer subsidy programs. By tailoring inputs to specific soil needs and environmental conditions, subsidies can move beyond blanket application and contribute to long-term land productivity and sustainability.

Beyond inputs, another key area was the need for clear exit and graduation strategies. Subsidies should act as a catalyst for growth, not a permanent support mechanism. By helping farmers build capacity and adopt sustainable practices, subsidy programs can empower them to eventually operate independently. Additionally, the private sector should be included in the implementation process and be seen as more than just a distribution channel. Workshop participants called for incentives to support private actors in training, soil testing, and product development highlighting that a well-functioning fertilizer market requires competition, thereby promoting innovation.

The workshop also emphasized a shared commitment to building fertilizer subsidy models that are inclusive, data-driven, and environmentally responsible. Balancing short-term productivity gains with long-term sustainability is no small task, but it is increasingly clear that isolated approaches are no longer sufficient. Collaboration between government, the private sector, civil society, and research institutions like CGIAR is essential. As one government representative emphasized: “But of course, some of these recommendations need also to be backed up by science, by evidence, by best practice. As government, we are very happy to work with partners and scientists who have got a wealth of experience to help us to go into this new area that we are calling subsidy because subsidy was a short-term measure. But we are seeing it’s something that might help our agriculture system moving forward.’

As Kenya charts a new path for input support, there is a real opportunity to make fertilizer subsidies more sustainable, inclusive, and effective. Grounded in evidence and strengthened by collaboration, these reforms can lay the foundation for a more resilient and market-responsive agricultural system. The next phase—piloting alternative subsidy models—will provide critical insights to inform future policy and scaling. If successful, Kenya could offer a blueprint for smarter, climate-resilient subsidies across the region.