Kelvin Wairimu
Is Maize Farming in Kenya Profitable? Let’s Break It Down
Maize is Kenya’s staple food and a key crop for many farmers. However, few farmers fully understand the actual cost and profitability of maize farming per acre. Is it truly profitable? What factors affect the cost and returns?
This article breaks down the cost of maize production per acre in Kenya, exploring four key scenarios:
- Farming on own land with self-funded fertilizer
- Maize Farming on rented land with self-funded fertilizer
- Farming on rented land with government-subsidized fertilizer
- Maize Farming on own land with government-subsidized fertilizer
Current Cost of Maize Production Per Acre in Kenya (2024): Ksh. 54,550
Potential Profit Per Acre: Up to Ksh. 27,750 (best case scenario)
Assumptions Used in This Analysis
- Average maize yield per acre: 20 bags
- Government buying price: Ksh. 3,500 per bag
- Subsidized fertilizer price: Ksh. 2,500 per bag
Read Also: Maize Farming in Kenya: How to Grow Maize for High Yields
Scenario 1: Cost of Maize Production Per Acre on Own Land with Self-Funded Fertilizer
Farmers who own land and buy their own fertilizer incur the following costs:
| Expense Item | Cost (Ksh.) |
|---|---|
| Land Preparation | 7,500 |
| Planting | 2,500 |
| 10kg of Seeds | 1,950 |
| 2 Bags of Planting Fertilizer | 12,600 |
| 2 Bags of Top-Dressing Fertilizer | 10,000 |
| Weeding | 7,000 |
| Pesticides | 3,000 |
| Harvesting | 4,000 |
| Post-Harvest Costs | 4,000 |
| Working Capital | 2,000 |
| Total Cost of Production | 54,550 |
Profit Calculation:
- Revenue: 20 bags × Ksh. 3,500 = Ksh. 70,000
- Profit: Ksh. 70,000 – Ksh. 54,550 = Ksh. 15,450
- Profit per bag: Ksh. 773
Verdict: Profitable, but margins are tight.
Read Also: Why H6213 is the superior maize variety this rainy season
Scenario 2: Cost of Maize Production on Rented Land with Self-Funded Fertilizer
For farmers renting land, the additional Ksh. 10,000 land rent significantly affects profitability.
| Expense Item | Cost (Ksh.) |
|---|---|
| All costs from Scenario 1 | 54,550 |
| Land Rent | 10,000 |
| Total Cost of Production | 64,550 |
Profit Calculation:
- Revenue: Ksh. 70,000
- Profit: Ksh. 70,000 – Ksh. 64,550 = Ksh. 5,450
- Profit per bag: Ksh. 273
Verdict: Barely profitable. Renting land increases costs, reducing profit significantly.
Scenario 3: Cost of Maize Production on Rented Land Using Government-Subsidized Fertilizer
Farmers using government-subsidized fertilizer (Ksh. 2,500 per bag) reduce costs by Ksh. 7,700 but face risks due to inconsistent fertilizer quality.
| Expense Item | Cost (Ksh.) |
|---|---|
| Total from Scenario 2 | 64,550 |
| Subsidized Fertilizer Savings | -7,700 |
| New Total Cost of Production | 56,850 |
Profit Calculation:
- Revenue: Ksh. 70,000
- Profit: Ksh. 70,000 – Ksh. 56,850 = Ksh. 13,150
- Profit per bag: Ksh. 658
Verdict: Moderately profitable. However, fertilizer quality is uncertain, which can impact yields.
Scenario 4: Cost of Maize Production on Own Land Using Government-Subsidized Fertilizer
This is the most profitable scenario as farmers cut costs while avoiding rent.
| Expense Item | Cost (Ksh.) |
|---|---|
| Total from Scenario 1 | 54,550 |
| Subsidized Fertilizer Savings | -12,300 |
| New Total Cost of Production | 42,250 |
Profit Calculation:
- Revenue: Ksh. 70,000
- Profit: Ksh. 70,000 – Ksh. 42,250 = Ksh. 27,750
- Profit per bag: Ksh. 1,388
Verdict: Most profitable option but depends on high-quality subsidized fertilizer and good rainfall.
Factors That Can Make or Break Maize Farming Profits
Conditions for High Profitability
- Adequate & well-distributed rainfall between April–June and October.
- Timely and high-quality government-subsidized fertilizer at Ksh. 2,500 per bag.
- The government maintains maize buying price at Ksh. 3,500 per bag or more.
- Minimal pest and disease outbreaks such as Fall Armyworm and locusts.
Major Risks That Can Reduce Profits or Cause Losses
- Drought or irregular rainfall leads to lower yields.
- Poor-quality subsidized fertilizer can result in lower productivity.
- Government buying prices dropping below Ksh. 2,750 per bag.
- Severe pest infestations increase production costs.
Final Verdict: Is Maize Farming in Kenya Profitable?
- Best Case Scenario (Own Land + Subsidized Fertilizer) → Profit of Ksh. 27,750 per acre
- Worst Case Scenario (Rented Land + Own Fertilizer) → Profit of Ksh. 5,450 per acre
Key Takeaways:
- Farmers with own land have a huge advantage in cost savings.
- Renting land significantly lowers profitability.
- Subsidized fertilizer helps, but quality concerns remain.
- Weather and government pricing are the biggest risk factors.
Thinking of starting maize farming? Contact us HERE to Do your cost analysis and factor in market risks before investing!
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