2019 Fertilizer Prices for Smallholder Tea Farmers

KTDA Management Services Ltd imported 95,937 metric tonnes (1,918,734 bags) of NPK 26:5:5 fertilizer valued at Kshs. 3.822 Billion on behalf of 619,637 small-scale tea farmers and some multinational companies. The fertilizer has been distributed through the 69 KTDA-managed tea factories in Kenya.

This year the cost of a 50kg bag is Kshs 1.996 on average compared to Kshs. 1,774 last year. The increase in fertilizer prices in 2019 compared to 2018 is attributable to a global increase in demand for fertilizer and increase in crude oil prices. The USD exchange rate is Kshs 104 in the year 2019 compared to Kshs 101 in 2018.

The current market price of similar fertilizer is Ksh 2,800 per bag which is 40% higher than KTDA average price.

The price includes C&F Mombasa, clearing, forwarding, handling and port charges. Individual factory prices are also affected by local transport charges which are dependent on the distance of the factory from the port of Mombasa.

KTDA Management Services Ltd purchases the fertilizer under the KTDA Fertilizer Credit Scheme. Farmers make repayments in easy monthly installments.

Fertilizer application improves tea yield and leaf quality.