Fertilizer retailing in the Kenyan Highlands

Abstract

Local retailers of agricultural supplies in developing countries occupy an important link in the dissemination of agricultural technologies but little is documented on their business activities in the Highlands of Kenya. Kenya's fertilizer markets were liberalized in 1990 and since then a steady increase in the proportion of fertilizers imported through commercial channels has occurred. A short, formal survey was conducted among 139 retailers in 74 market centres located in six Provinces of Kenya. Business operators were asked about the formulations and prices of fertilizers sold, product repackaging, sources and dissemination of product information, sales trends and the availability and extension of credit. Retailers were found to market a total of 17 different fertilizers, with each retailer marketing an average of 4.5 types. Retailers provided specific recommendations concerning their products to farmers with 81% considering this an important part of their business ac tivities. Many retailers' recommendations are based upon written information and testing on family farms but others were unable to justify the basis of their recommendations. More than twice as many retailers extended credit to customers (31%) than was extended to them by their suppliers (14%). Two important national indicators of fertilizer marketing, total supply and consumption, do not significantly differ when the seven years before and after onset of market reforms started in 1990 are compared but other, more subtle national indicators suggest that successful fertilizer marketing reforms are in progress. There is a significant decrease in the proportion of annual ‘carry-over’ of fertilizer stocks (p = 0.04) resulting from a shift from distribution by parastatal to privatized operations and a significant positive trend in commercial fertilizer imports over time since the implementation of market reforms (r = 0.97).