Cabinet Secretary for National Treasury and Economic Planning John Mbadi on Thursday, June 12, 2025 presented a Ksh 4.2 trillion spending plan for the 2025/26 financial year at Parliament buildings in Nairobi.
The CS proposed an allocation of a total of Ksh 47.6 billion for various programs under agriculture sector.
The allocation is expected to transform the agriculture sector, by increasing productivity in key value chain such as; fisheries and aquaculture, horticulture, food crops, livestock and rangeland development.
The Government will scale up support to farmers through input financing, subsidies and extension services.
This will move the country from food deficit to food surplus, reduce reliance on food imports and revamp export crops.
In the proposed allocations,the government set aside Ksh 8billion for the Fertilizer Subsidy Programme, Ksh 10.2 billion for the National Agricultural Value Chain Development Project, Ksh 800.0 million for Small Scale Irrigation and Value Addition Project, Ksh 1.2 billion for Food Security and Crop Diversification Project and Ksh 5.8 billion for the Food Systems Resilience Project.
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The CS also proposed Ksh 2.3 billion for De-Risking, Inclusion and Value Enhancement of Pastoral Economies Programme, Ksh 1.6 billion for Kenya Livestock Commercialization Programme (KeLCoP) and Ksh280 million for the Livestock Value Chain Support Project.
“I have also proposed Ksh 340 million for the Development Leather Industrial Park at Kenanie, to support the growth of the blue economy, I have proposed a total of Ksh 8.2 billion to the Blue Economy and Fisheries subsector,” the CS said.
The allocation includes Ksh 2.3 billion for Aquaculture Business Development Project; Ksh 2.4 billion to the Kenya Marine Fisheries and Socioeconomic Development Project and Ksh 500 million for Kabonyo Fisheries & Aquaculture Training Center.
To raise agricultural productivity and enhance resilience to climate change risks in targeted smallholder farming and pastoral communities, the CS proposed an allocation of Ksh 318 million towards Ending Drought Emergencies project and Ksh1.3 billion to Resilience for Food and Nutrition Security Program in Horn of Africa project.
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In order to revitalize and maximize the benefits from cash crops ,the government allocated Sh 2.0 billion for the Coffee Cherry Revolving Fund, Sh 2.0 billion for Coffee Debt Waivers, Sh1.5 billion for sugar sector reforms, Sh120 million for Modernization and Revitalization of Cotton Ginneries, and Sh245 million for the Horticultural Produce Compliance Enhancement Project.
The CS also proposed allocation of Sh300 million for the National Edible Oil Crops Promotion Project to support local production and processing of edible oils.
The government will rollout fertilizer and seed subsidies to farmers across the country that has boosted production in key food value chains and revived underperforming or collapsed export crops such as pyrethrum.
The CS said since February 2024 a total of 6.5 million registered farmers have benefited from the Fertilizer Subsidy Programme.
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As a result of these initiatives, the cost of fertiliser has declined by 67 per cent, from Ksh7, 500 in 2022 to Sh2,500 in 2025, while maize production has increased by 38.9 per cent, from 61.7 million bags in 2022 to 85.7 million bags in 2024.
There was also proposed an allocation of Sh400 million for excess milk mop-up and Sh150 million for the modernization of milk processing factories in Runyenjes and Narok.
CS Mbadi promised a more inclusive, less punitive tax regime. The Kenya Revenue Authority will focus on expanding the tax base and using technology including AI-driven compliance systems to capture revenues from informal and digital sectors.
By Obegi Malack
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