Experiments were conducted on farmers’ fields in a medium altitude ecosystem in Western Kenya to determine agronomic and financial implications of using farm-saved seed selected from advanced open pollinated generations of certified maize hybrids. First generation of certified seed (G1) of two commercial hybrids (H513 and H614), a local maize variety-Ababari and their respective advanced open pollinated generations two and three (G2 and G3) were evaluated with and without inorganic fertilizer. Significant differences (P<0.05) in maize grain yield were observed with the G1 consistently yielding more than their respective G2 and G3 generations. Fertilizer application resulted in significantly (P < 0.05) higher yield. The farmers’ variety revealed a marginal response to fertilizer but was significantly (P < 0.05) different at Ulumbi. Economic analyses showed that although certified seed with fertilizer had yield advantage of approximately one ton per hectare over unfertilized local maize, the marginal rate of return on hybrid seed and fertilizer was only 15%. This rate of return may not offer sufficient economic incentive for farmers to abandon the practice of growing local and recycled maize seeds without fertilizer given the associated costs of adopting a new technology. It is evident from this study that use of certified and inorganic fertilizer maize will significantly increase maize grain yield. However, the increase in grain yield cannot economically cushion the additional costs of certified seeds and fertilizer.