Inside John Mbadi's Sh97b 202627 budget plan to enhance food production
Smart Harvest
By
Graham Kajilwa
| Dec 28, 2025
The plan to include the private sector in the distribution of subsidised fertiliser is one of the strategies the government is seeking to deploy to safeguard the country’s food security, having allocated Sh97 billion to the agriculture sector for the next financial year.
Detailed in the Sh4.7 trillion 2026/27 draft budget, the government also targets strategic resource allocation to facilitate soil testing in order to ensure farmers get the right fertiliser for their crops and soil type.
This will go alongside the distribution of agricultural lime to 4.4 million smallholder farmers across all the counties.
“This intervention addresses the persistent challenge of low soil fertility while making critical inputs affordable to resource-constrained farmers, thereby enhancing agricultural productivity and national food security,” reads the draft 2026 Budget Policy Statement published by the National Treasury.
The document that forms the baseline of the 2026/27 budget states that in the coming financial year, and the medium term, the government will sustain and deepen the close-knit fertiliser subsidy program to consolidate the gains achieved in the last three years.
“Over the medium term, the program will provide 2.3 million metric tonnes of assorted fertiliser and 40,000 metric tonnes of agricultural lime to 4.4 million small holder farmers across the country,” the document says.
e-vouchers
The National Treasury document says over the past three years, the Kenya Integrated Agriculture Management Information System (KIAMS), which is the system used to distribute subsidised fertiliser to farmers through e-vouchers, has achieved remarkable success.
The policy document states that the number of farmers registered in the system stands at 7.1 million with the program having reached 3.15 million, which is a 62 per cent success rate.
Farmers in the system benefit from reduced fertiliser prices from Sh6,500 to Sh2,500 per bag.
As a result, maize production is said to have increased 95 per cent from 34 million bags in 2022 to 67 million bags in 2024 and is anticipated to hit 70 million bags in 2025.
“The wholesale average price declined by 24.5 per cent from Sh4,729 per bag in 2022 to Sh3,568 per bag in 2024,” the policy statement says.
The government intends to continue with aggressive farmer registration in the system while also incorporating soil testing.
“Strategic resource allocation will support integration of soil sampling data into KIAMS to enable precision agriculture and optimise fertiliser application based on soil-specific nutrient requirements,” the statement says.
It adds that the government is committed to providing soil health services to guide farmers on appropriate fertiliser use.
Further expansion of geo-location of redemption centres is expected to strengthen last-mile distribution networks, while investment in e-voucher technology infrastructure and mobile connectivity will be scaled up as well to enhance program efficiency.
“In subsequent years, the framework will be revised to increase private agro-dealer participation through competitive e-voucher redemption that enhances farmer choice and market efficiency,” the statement says.
“Resources will be allocated for programme management strengthening, including monitoring, evaluation and anti-corruption measures to safeguard program integrity.”
The government has been reluctant to open up the program to the private sector for fears of infiltration by ‘cartels’ who would hoard and distribute the fertiliser on demand for profit.
Long queues
It is the reason why the e-voucher system, where fertiliser is distributed directly to the registered farmer, was introduced. The system cuts off middlemen, hence reducing the cost of production and ultimately, the cost of food.
In the document, the government acknowledges the challenge of long queues and limited access in fertiliser distribution. Fertiliser is currently being distributed through the National Cereals Produce and Board (NCPB) centres in all counties.
“Plans are underway to use the Vulnerable and Marginalised Groups (VMGs) system to support targeted distribution of the fertiliser,” the document says.
The Budget Policy Statement shows Agriculture and Rural & Urban Development (ARUD) have been allocated Sh97 billion for the 2026/27 financial year. ARUD sector encompasses: The State Department for Agriculture, Blue Economy and Fisheries, Lands and Physical Planning, Livestock Development and the National Land Commission.
Funding allocations for these initiatives under these state departments are projected at Sh97 billion in 2026/27, Sh91.2 billion in 2027/28, and Sh101.6 billion in 2028/29, reflecting the sector’s commitment to sustainable development and economic growth,” the statement says.
The statement says agriculture remains a core pillar of the Bottom-Up Economic Transformation Agenda (BETA) and a key driver of sustainable and inclusive growth, noting that the sector supports more than two-thirds of Kenyan households and has one of the highest employment multiplier effects.
“For these reasons, the Government will continue to prioritise policies and investments that strengthen agricultural productivity, ensure food security, and enhance farmers’ income,” the statement adds.