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Kenya uses mobile technology to subsidize farmers

Xinhua, May 30, 2015 Adjust font size:

Kenya has selected a mobile phone company to help streamline a pilot project that aims at empowering farmers with access to a technology-based solution for the distribution of fertilizer and other key inputs.

The ministry of agriculture said the project to be rolled out by the country's largest mobile firm, Safaricom, will see over 500, 000 farmers use their mobile phones to receive critical subsidy during the pilot phase.

Principal Secretary of State Department of Agriculture Sicily Kariuki said traditionally, the process of giving subsidies to farmers has been time-consuming and inefficient as there was no single way to reach them all effectively.

"Our solution, should the pilot be successful, will allows us to increase transparency in the allocation of fertilizer to over 3. 5 million small-holder farmers across the country, using mobile phones," Kariuki added in a statement on Saturday.

The solution, named "E-fertilizer Subsidy Management System", is an electronic vouchering solution that has been specially developed for the ministry by Safaricom, allowing farmers to access vouchers via their mobile phones.

It will also enable the government to plan future requirements in terms of fertilizer types and quantities. The vouchers will be used by the farmers to access government fertilizer at subsidized prices.

E-Fertilizer Subsidy leverages data and SMS services will manage the issuance, redemption and reconciliation of vouchers. The solution offers simple reporting capabilities in order to improve decision support for the ministry, which is charged with distributing fertilizer inputs to farmers across the country.

Safaricom CEO Bob Collymore said mobile technology has the ability to revolutionize traditional distribution models and enhance supply chain issues.

"This turn-key solution is just one of several that Safaricom hopes will transform the operations of businesses across Kenya," Collymore added.

As part of the strategy, the ministry is implementing a fertilizer subsidy program aimed at stabilizing fertilizer prices, thus cushioning farmers from price fluctuations across seasons and making it affordable to farmers.

Agriculture is the backbone of Kenya's economy, earning over 24. 2 percent of the country's GDP, and employing 75 percent of the country's workforce.

Kariuki said the solution also allows for the verification and vetting of farmer profiles. Registration of farmers to benefit from the program as well as agro-dealers is being carried out by the ministry. Endi