Kenya project 615-0243 · 1989–1996 · agriculture

Mid-term evaluation of a program to encourage fertilizer marketing reforms in Kenya. Evaluation covers the period 1986-12/91. The program has succeeded in achieving its purpose. Importers and distributors now use pricing policies which reflect the cost of fertilizer to them, including a profit margin which is driven primarily by competitive forces. There is a wider retail distribution network in place: retailers are earning higher margins, which has provided an incentive for them to set up in new areas and in competition with existing retailers. In addition, fertilizer traders are beginning to develop new sources of competitive advantage in strategic activities such as marketing, sales, and service activities. This stronger market network has increased the potential for increased smallholder fertilizer use. The terms of reference for this evaluation study did not require direct estimation of the actual changes in smallholder fertilizer use. However, over the duration of the program, total fertilizer consumption in Kenya fell from 272,000 tons in 1988/89 to 228,000 tons in 1990/91, a decline of 16%. It is likely that fertilizer use by smallholders over the period would have

Source: DEC abstract, PD-ABI-172 (1992). The source's own text.