World Bank, CAK push reforms to open up fertilizer market
NAIROBI, Kenya, Nov 26 - The Government has been urged to reform the fertilizer subsidy programme to give farmers more freedom to choose products and Kenya breaking news | Kenya news today |..
✨ Key Highlights
The World Bank and Kenya's Competition Authority (CAK) are urging the Kenyan government to reform its fertilizer subsidy program to provide farmers with greater choice and market-driven prices. A joint report highlights how the current program, NFSP-2, has limited farmer autonomy compared to the previous voucher-based system.
- The NFSP-2 program, adopted after the 2020 fertilizer crisis, accounts for 30–40 percent of national fertilizer sales as of June 2025.
- The report recommends modifying NFSP-2 to permit more last-mile retailers and introduce competitive bidding for future contracts, suggesting options like the lowest retail price under a fixed subsidy or the lowest subsidy required.
- The CAK is also called upon to strengthen anti-cartel enforcement to prevent anticompetitive practices like bid-rigging in the fertilizer market.
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World Bank & CAK Push for Agricultural Reforms as Kenya Seeks Tariff Cuts from China - November 2025
A joint report by the World Bank and the Competition Authority of Kenya (CAK) reveals that government support for state-owned sugar companies distorts competition in Kenya's sugar sector. In a separate report, the two bodies are also urging the Kenyan government to reform its fertilizer subsidy program to provide farmers with greater choice. The report highlights how the current program, NFSP-2, has limited farmer autonomy compared to a previous voucher-based system. On the trade front, Kenya is urging China to eliminate tariffs on its key agricultural exports. Agriculture Cabinet Secretary Mutahi Kagwe met with officials from the General Administration of China Customs (GACC) to push for faster clearance and zero duty on commodities like coffee, tea, and avocados to address a significant trade deficit.
