It is believed to be a loss-making farming business by many in Kenya, but others believe it’s a profit-making enterprise with low cost and minimal managerial involvement.

Today, we ask ourselves: is maize farming in Kenya profitable, and if yes, by how much?

With maize being a staple food for Kenya, most farmers know that when it rains, planting means sowing maize. But is it profitable?

In this article, we look at the cost of maize farming per acre, how many bags of maize you can harvest per acre, loss or profitability, return on investment, and the payback period.

We shall examine two scenarios: a farmer with their own land and a new farmer who decides to lease land. Either farmer can decide to sell their maize green, dry, or as silage for fodder.

Normal Farmer with Own Land

It will cost this farmer KSh 6,000 for ploughing and KSh 3,000 for harrowing, making the total cost of land preparation KSh 9,000.

Two tons of manure will cost KSh 10,000. Ten kilograms of seeds will cost KSh 5,000. The farmer will also need 2 bags of DAP at KSh 13,000 and KSh 10,000 for 2 bags of CAN.

To control weeds, herbicides will cost KSh 4,000, insecticides KSh 1,000, while labour and other costs will amount to KSh 5,000. This brings the total cost of maize farming per acre to KSh 57,000 for a farmer with their own land.

A New Farmer Leasing Land

This farmer will incur an additional cost of KSh 20,000 for leasing good, fertile agricultural land on top of the production cost of KSh 57,000 incurred by the farmer with their own land.

This brings the total cost of maize farming per acre to KSh 77,000 for a new farmer leasing land.

Read Also: Green vs. Dry Maize Farming in Kenya:Which is More Profitable in 2025?

Maize Farming Revenue per Acre

Both farmers can opt to sell their harvest as green maize, fodder, or dry maize.

Ten kilograms of maize can produce 20,000 pieces of green maize. If each is sold at KSh 5, then the farmer will earn KSh 100,000 plus KSh 15,000 from the sale of maize stalks.

This farmer will make a profit of KSh 58,000 (KSh 115,000 – 57,000) with their own land and KSh 38,000 (KSh 115,000 – 77,000) with leased land.

The same acre of land can produce 10 tons of silage fodder. If sold at KSh 10 per kilogram, the farmer earns KSh 100,000.

This gives a profit of KSh 43,000 (KSh 100,000 – 57,000) with their own land and KSh 23,000 (KSh 100,000 – 77,000) on leased land.

If the maize is left to dry, the farmer can harvest 25-35 bags depending on the variety.

In this case, we shall work with 25 bags. If each 90kg bag is sold for KSh 3,500, the farmer will earn KSh 87,500.

This results in a profit of KSh 30,500 (KSh 87,500 – 57,000) with their own land and a profit of KSh 10,500 (KSh 87,500 – 77,000) on leased land.

All these prices are subject to variation with changing market prices for both inputs and harvested maize.

ROI and Payback Period Analysis

What is ROI (Return on Investment)?

ROI tells you how much profit you make for every shilling you invest. It’s like asking: “If I put KSh 100 into this business, how much extra money will I get back?”

Formula: ROI = (Profit ÷ Investment) × 100

What is Payback Period?

Payback period tells you how long it takes to get back all the money you invested. It’s like asking: “How long before I recover my initial investment?”

Formula: Payback Period = Investment ÷ Profit per period

Calculations for Different Scenarios

1. GREEN MAIZE (Best Option)

Farmer with Own Land:

• Investment: KSh 57,000
• Profit: KSh 58,000
• ROI = (58,000 ÷ 57,000) × 100 = 102%
• Payback Period = 57,000 ÷ 58,000 = 0.98 seasons (about 4 months)

Farmer with Leased Land:

• Investment: KSh 77,000
• Profit: KSh 38,000
• ROI = (38,000 ÷ 77,000) × 100 = 49%
• Payback Period = 77,000 ÷ 38,000 = 2.0 seasons (about 8 months)

2. SILAGE FODDER (Second Best)

Farmer with Own Land:

• Investment: KSh 57,000
• Profit: KSh 43,000
• ROI = (43,000 ÷ 57,000) × 100 = 75%
• Payback Period = 57,000 ÷ 43,000 = 1.3 seasons (about 5 months)

Farmer with Leased Land:

• Investment: KSh 77,000
• Profit: KSh 23,000
• ROI = (23,000 ÷ 77,000) × 100 = 30%
• Payback Period = 77,000 ÷ 23,000 = 3.3 seasons (about 13 months)

3. DRY MAIZE (Lowest Returns)

Farmer with Own Land:

• Investment: KSh 57,000
• Profit: KSh 30,500
• ROI = (30,500 ÷ 57,000) × 100 = 54%
• Payback Period = 57,000 ÷ 30,500 = 1.9 seasons (about 8 months)

Farmer with Leased Land:

• Investment: KSh 77,000
• Profit: KSh 10,500
• ROI = (10,500 ÷ 77,000) × 100 = 14%
• Payback Period = 77,000 ÷ 10,500 = 7.3 seasons (about 2.5 years)

What Do These Numbers Mean?

ROI Explanation:

• 102% ROI means for every KSh 100 you invest, you get KSh 102 profit (plus your original KSh 100 back)
• 49% ROI means for every KSh 100 you invest, you get KSh 49 profit
• Any ROI above 20-30% is considered very good in farming

Payback Period Explanation:

• 0.98 seasons means you get all your money back in less than one growing season
• 7.3 seasons means it takes over 7 growing seasons to recover your investment
• Shorter payback periods are better because you get your money back faster

Key Insights for Farmers:

1. Green maize is the most profitable option – especially if you own land
2. Owning land makes a huge difference – ROI is much higher than leasing
3. Leasing land for dry maize gives very low returns (only 14% ROI)
4. Green maize pays back investment fastest – in less than one season

Conclusion

We can therefore conclusively say that maize farming in Kenya is profitable. The cost of maize farming per acre in Kenya is KSh 57,000 to 77,000. Farmers can make KSh 10,500 to 58,000 per acre of maize farming in Kenya.

Recommendation: If you have your own land, focus on green maize for the highest returns (102% ROI). If you must lease land, green maize is still your best option (49% ROI), but avoid dry maize on leased land as the returns are too low (14% ROI).

About Post Author