Farmers in the Uasin Gishu County will soon enjoy subsidized prices on fertilizers as Toyota Tsusho Corporation is set to construct a 123 billion Kenya shillings fertilizer plant in the region.The plant will be built on a two-acre piece of land the Japanese firm acquired in Kapsaret, Eldoret. The firm will further expand the area under the plant to five acres.
Toyota East African chairman and adviser Dennis Awori said the two acres are sufficient to put up a plant, but they intend to expand in future.
The construction of the plant will be a major shot in the arm to the government, as it will save the government billion of shillings in subsidies. The goverment further estimates that the plant will cut the cost of fertiliser by close to 40 per cent.
The government spends Sh3 billion annually to provide farmers with low-cost fertiliser at Sh1, 600 compared to market rate of Sh3, 500.
The new plant would be close to the new bypass that connects Nairobi to other towns in western Kenya such as Kisumu and Kakamega, making it easy for them to get raw material to the site as well as transport finished products to the market.The plant is expected to end the perennial shortage of fertiliser in the country, which has in the past exposed farmers to exorbitant prices.
Eldoret has been chosen as the location of the plant due to the high quantities of fertiliser that the North Rift region consumes, according to the government.
This comes at a time when MEA Limited, a Kenyan – owned fertilizer also plans to put a plant in Nakuru.The firm is set to receive 1 billion Kenya Shillings loan from the International Finance Corporation to fund a 3 billion fertiliser plant, the construction of the fertiliser plant is set to begin in October 2015.