A French-based agribusiness company has intensified its proposition to acquire Kenyan-based fertiliser company CFAO Agri Limited and enter Kenya’s lucrative fertiliser sector.
This follows an invitation to interested stakeholders by the Common Market for Eastern and Southern Africa (Comesa) competition commission for written representation, over the acquisition of 51 percent stake of CFAO by Fipar Agro International follows.
“The commission will, in accordance with Article 26 of the Regulations, determine, among other things, whether or not the proposed transaction is likely to substantially prevent or lessen competition within the Common Market and whether the proposed transaction is or would be contrary to the public interest,” Comesa said in a statement on Friday, March 25.
The firm has an active presence in Egypt, Kenya, Libya, Madagascar, Mauritius, Rwanda, Sudan, Tunisia and Zambia.
The move is seen as a deal to bring experience and expertise in crop nutrition, accelerating and supporting the development of the Baraka fertilizers brand. It may also optimise operations through its industrial and “non-straight” fertilisers expertise (Complex NPK and Blended specific NPKs).
This acquisition will make farmers optimistic having grappled with costly and limited fertilisers for years, despite the situation having been made worse in the wake of the Ukraine-Russia tiff.
Russia suspended the exportation of fertiliser, reducing a significant portion of the global supply that has seen import countries seek alternative sources.
Fertiliser prices have reached their highest level since 2008, with DAP reaching Sh6,000 per 50kg bag, and are expected to rise further if the tension persists and no subsidy is injected. NPK and CAN are currently available for purchase at Sh4,900 and Sh3,900, respectively.
The agriculture Cabinet Secretary Peter Munya told the agriculture committee earlier this month that farmers will have to deal with the current high fertiliser prices until August because the docket is awaiting Sh31.8 billion in subsidy approvals.
Fertiliser scarcity and high prices have added inflammatory pressures to Kenyan farmers, who are already burdened by high fuel prices, weed-killing chemicals, crop seeds and limited rainfall, endangering the country’s cereal production and overall food security.