| A better understanding of the factors affecting fertilizer demand helps to formulate relevant policies for increased fertilizer use. Kenya's rising population and demand for food have made the government focus on increased agricultural production through increased fertilizer use in the smallholder sector. This study develops a model for the Kenyan smallholder fertilizer demand derived from maximization of the certainty equivalent of profits. The analysis is based on the data collected from 150 farm holdings. The Tobit estimation technique is used to determine factors that affect both the probability of using fertilizer and the intensity of fertilizer use. Key factors influencing fertilizer demand include education levels, working capital availability, frequency of contact with extension personal, other sources of information, and the price of fertilizer. A fertilizer price subsidy and an attractive credit programme are recommended for increased fertilizer use. |
