This is a best prospect industry sector for this country. Includes a market overview and trade data.

Agricultural Machinery and Chemicals Overview

Kenya imports virtually all of its agricultural chemicals because there is no significant local production. Unlike many sub-Saharan African countries, Kenya’s fertilizer use has almost doubled since the liberalization of the market in the 1990s and removal of government price controls and import licensing quotas. The growth in use has been noted especially among the smallholder farmers for food crops (maize, domestic horticulture) and export crops (tea, coffee). Growth in the industry is largely due to huge private investment to import and sell fertilizers on the local market. The fertilizer industry is dominated by Russia, United States, Ukraine, China and Romania. After blending, a small percentage of these fertilizers are exported within the region.
 
The rise in use of fertilizer can also be attributed to a stable fertilizer marketing policy, increased private sector participation which imports on behalf of government agencies and for private users; increased competition, availability of fertilizer closer to the rural areas (the private sector has invested in a wide and intense distribution network); the reduction of distance to nearest fertilizer seller and better access to markets for farmers’ produce.
 
The Government of Kenya continues to provide fertilizer subsidies under the National Accelerated Agricultural Input Access Program (NAAIAP) which provides farm input subsidies and distributes subsidized fertilizer to small scale farmers to reduce poverty and “kick- start” agricultural productivity that was greatly affected by the 2007 post-election violence and as well as inadequate rainfall. The bulk purchase of fertilizer also looks to cut out the middlemen and thus bring down the price of fertilizers, and thereby bring down food prices.
 
Sub-Sector Best Prospects
Best sales prospects for U.S exporters include fertilizers and pesticides. Half of all pesticides imported by Kenya are fungicides, 20% crop insecticides, 20% herbicides, acaricides, rodenticides, and nematicides, and 10% other. Kenya’s consumption of fertilizers in 2012 was more than 500,000 tons valued at $236 million. The most widely used fertilizer is di-ammonium phosphate (DAP). Other fertilizers used in Kenya include nitrate potassium phosphate (NPK), single super phosphate (SSP), and calcium ammonium nitrate (CAN) and Urea.
 
Note: Fertilizers are the number two product counterfeited in Kenya. U.S. exporters should expect some competition from these lower priced, inferior goods. Consider marketing the effectiveness of a genuine product in your marketing campaigns.
 
Opportunities
Great opportunities exist in the maize, wheat, tea and coffee growing seasons. There has been a continued growth in the use of fertilizers to produce these commodities. Kenya’s horticulture industry is a major export success in Africa. The industry is entirely dominated by the private sector and provides many opportunities for increased importation of fertilizers and pesticides as well as equipment.
 
Agriculture remains the backbone of Kenya’s economy and brings the challenges of growing enough quality food to feed the growing population while adverse climate changes. Kenya will need to rely on methods adopted by other Asian and Latin American countries that are able to meet their food security needs. This will definitely include an increased use of fertilizers.
 
Recent soil analysis of secondary and micronutrient deficiencies in Kenya shows widespread deficiencies of various secondary and micronutrients – particularly S, Zn and B. Kenya was also found to have considerable areas of high soil acidity, which can affect yield response of acid-sensitive crops. The GoK will be educating farmers and providing information on the best fertilizers for specific regions to improve nutrients and thus yields. Consultancies in this area are welcome.
 
Note: USAID is responsible for implementing the President’s Feed the Future (FTF) initiative, which seeks to help farmers improve food production and weather regular cycles of drought and famine.
 
New investment in manufacturing is encouraged by the Government of Kenya, and U.S. industrial chemical manufacturers/suppliers may consider utilizing Kenya as a base for penetrating the Eastern African market. The government is keen to set up a fertilizer manufacturing facility in Kenya as part of the Vision 2030 to promote food security and lower food prices.
 
Catherine Malinda
Commercial Assistant
U.S. Commercial Service, U.S. Embassy Nairobi
U.S. Department of Commerce | International Trade Administration
Tel: +254 (20) 363-6064; Catherine.Malinda@trade.gov
 
Web Resources
Tegemeo Institute, Egerton University
Agrochemicals Association of Kenya (AAK)
Fresh Produce Exporters of Kenya (FPEAK)
Kenya Flower Council (KFC)K
Ministry of Agriculture
Kenya National Bureau of Statistics

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.