Funding cut in agriculture to hurt prospects

Agriculture and Livestock CS Mutahi Kagwe respond to queries when he appeared before the National Assembly Agriculture and Livestock Committee on the 2025 Budget Policy Statement at Parliament on February 21, 2025. [Boniface Okendo, Standard] The agriculture and livestock sectors are facing a significant budget shortfall for the 2025-26 financial year. Total allocation to the agriculture sector is Sh47.6 billion, a reduction from the Sh54.6 billion in the previous year, as announced by National Treasury Cabinet Secretary John Mbadi in Parliament. "The government has allocated Sh47.6 billion for various programmes under the sector despite the fact that agriculture is devolved. The national government is committed to supporting the sector through input financing, subsidies, and extension services," he said. Mbadi added that this would move the country from a food deficit to a food surplus, reduce reliance on food imports, and enhance export crops. The Agriculture and Livestock Committee has raised concerns that several key programmes have been significantly underfunded, potentially compromising their effectiveness and ability to achieve intended objectives. The committee cites the Food Security and Crop Diversification Project, which has a funding shortfall of Sh1.5 billion, and the Fertiliser Subsidy Programme, which is underfunded by Sh10 billion. "These financial gaps could impact agricultural productivity, food availability, and overall economic stability. To ensure the successful implementation of these initiatives and the realisation of Bottom-Up Economic Transformation Agenda (BETA) objectives, it is essential that funding allocations are enhanced to adequately support their intended outcomes," said the Committee. Kenya Seed Company, which plays a crucial role in providing subsidised maize seed to help farmers manage rising seed costs, requires Sh1.7 billion in financing but has not been allocated any funding. The Committee now warns that the lack of funding may affect timely access to essential planting materials, potentially leading to increased production costs for farmers. "Without adequate support, agricultural productivity and food security could be affected, emphasising the urgent need for budgetary intervention to sustain this subsidy programme and protect farmers from financial strain," it said. Also left unfunded is the National Livestock Development and Promotion Service (NLDPS), which requires Sh1.33 billion. The NLDPS coordinates the development, promotion, and marketing of livestock and livestock products both domestically and internationally. The Committee says that without any allocation of funds, key initiatives aimed at enhancing the livestock sector, improving market access, and ensuring sustainable growth will be affected. The Committee has advised that bridging this funding gap is essential to support livestock development and strengthen its contribution to the economy. Despite the budget challenges, some programmes and key value chains have received financial support to enhance productivity. These include food crops, fisheries and aquaculture, livestock, and horticulture. The National Agricultural Value Chain Development Project (NAVCDP) took the lion's share with Sh10.2 billion, followed by the Fertiliser Subsidy Programme with Sh8 billion, the Food Systems Resilience Project with Sh5.8 billion, and Fisheries and Aquaculture Development, which received Sh4.8 billion. Other allocations include Sh2.3 billion to the Value Enhancement of Pastoral Economies, Sh2 billion to support sugar sector reforms, and Sh2 billion towards the Coffee Cherry Revolving Fund, among others.

Funding cut in agriculture to hurt prospects

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