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September 25, 2008

Kenya promises farmers subsidised fertiliser

Government subsidized fertilizer will be available to Kenyan farmers by late October.

Tenders for the supply of the 180 thousands tonnes of the fertilizer will be floated this month.

Agriculture minister William Ruto says the government has set aside eleven billion shillings for the exercise which is expected to force the cost of fertilizer to come down.

The move comes as farmer's hue and cry persists over the high cost of the commodity.The price of a fifty kilo bag of fertilizer is trading at an all time high of 4500 shillings from less than 2000 thousand shillings a few months ago. This has been blamed on the high cost of energy and the high demands from China and India.

In an effort to cushion farmers against high cost of farming the government promised to import subsidized fertilizer on a 30 to 70 basis.

Ruto says in an effort to address the issue effectively the government is in talks with Athi River Mining Company over the construction of a multi billion shillings fertilizer company in the country.

He further revealed that African Development Bank is willing to finance the construction of a regional fertilizer company.


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