Government will spend Ksh54.6 billion in 2024l25 financial year to finance various agriculture activities in the sector,
National treasury and planning Cabinet Secretary Prof. Njuguna Ndung’u while reading the 2024/25 budget statement said the Government will continue to focus on agricultural transformation and inclusive growth through the value chain approach.
He added that the aim will be to provide adequate and affordable working capital to all farmers through cooperative societies and deploy modern agricultural risk management instruments that ensure farming is profitable and income is predictable.
“ The government aims at transforming farmers from food deficit to surplus producers through input finance, subsidies and intensive agricultural extension support, raise the productivity of key food value chains, reduce dependence on basis food imports, revamp underperforming export crops and boost tea value chain through blending and branding”, Prof. Ndung’u said .
In order to attain food and nutrition security, the CS proposed an allocation of Ksh 54.6 billion for various programmes under the sector.
This includes Ksh 10 billion for the fertilizer subsidy programme, Ksh 6.1 billion for the National Agricultural Value chain development project, Ksh 2.5 billion for emergency locust response, Ksh 2.4 billion for the enable youth and women in agriculture , Ksh 747. million for small scale irrigation and value addition projects and Ksh 642.5 million for the food security and crop diversification project.
On livestock, Prof. Ndung’u has proposed Ksh 2.4 billion for de risking, inclusion and value enhancement of pastoral economies programme, Ksh 1.5 billion for livestock value chain support project, Ksh 1.5 billion for Kenya livestock commercialization programme , and Ksh 192.5 million for the embryo transfer project .
“ I have also proposed Ksh 300 million for the development of leader industrial park while at the same time proposed an allocation of Ksh 340 million towards ending drought emergencies project as this will raise agricultural productivity and enhance resilience to climate change risks in targeted smallholder farming pastoral communities”, the CS said
During his remarks , Prof. Ndung’u said that the Kenyan economy is susceptible to the ranging impact of climate change as demonstrated by the prolonged drought in 2021/22 the severest in the last 40 years and the recent floods that led to loss of lives and damage to property and infrastructure across the country.
“These extreme climate change events have emerged as key drivers of food insecurity and increased loss of living and the shocks that have shifted budgetary resources from economic activities to saving lives and rebuilding damaged infrastructure.
In order to therefore to support environment and water conservation and respond to climate change Prof Ndung’u set aside Ksh 73.1 billion to expand Access to Clean and Adequate Water for Domestic and Agricultural use in the next financial year 2024/25;
He further proposed Ksh 10.7 billion Forests Resources Conservation and Management; Ksh 1.7 billion Forests Research and Development; Ksh 5.9 billion Kenya Financing Locally Led Climate Action Project; Ksh 2.7 billion Environment Management and Protection; Ksh 1.6 billion Meteorological Service; and Ksh 13.1 billion Wildlife security, conservation and management.
Ahead of the budget reading today, Members of the public had been asked to give their views in the various sectors of the economy and according to the CS, he assured Kenyans that the government has spelt out measures to address their concerns through the budget.
The agricultural sector is the backbone of the economy, contributing approximately 33 percent of Kenya’s Gross Domestic Product (GDP). At the same time recognizing the value of the environment in economic development, the Government in collaboration with local and international stakeholders’ places environment and natural resources governance as a national priority.
The statement that Prof. Ndung’u delivered to the National Assembly is running under the theme “ Sustaining Bottom up Economic Transformation Agenda (BETA) , fiscal consolidation and investing in climate change mitigation and adaptation for improved livelihoods”
By Wangari Ndirangu
