This policy brief examines the impacts of fertilizer subsidies on small-holder agriculture in Kenya. Simulations show that increasing government expenditure on chemical fertilizer subsidies can bring immediate positive change in average crop yields and for socio-economic indicators such as agricultural employment, poverty and undernourishment levels. This, however, comes with unintended environmental effects from fertilizer dispersion and degradation of soil fertility. The brief recommends increased government support for training in sustainable ecological agriculture for small-scale farmers.