The government has proposed an allocation of Sh64 billion to the agriculture sector in the 2026/2027 financial year, in a move aimed at accelerating agricultural transformation, boosting productivity and strengthening food security.
National Treasury Cabinet Secretary John Mbadi announced the allocation on Thursday while presenting the national budget in Parliament, describing agriculture as a cornerstone of Kenya’s long-term economic prosperity.
“The agriculture sector remains central to Kenya’s long-term prosperity. It supports more than two-thirds of Kenyan households and generates a strong employment multiplier effect, especially among groups excluded from modern economic opportunities,” Mbadi said.
He added that strengthening agriculture was essential for food and nutrition security, climate resilience and inclusive growth.
“Strengthening agriculture is therefore essential for food and nutrition security, enhancing resilience and supporting shared prosperity,” he told lawmakers.
Mbadi said the proposed Sh64 billion would be channelled into targeted programmes designed to lower production costs for farmers, improve value addition and build resilience against climate shocks.
The largest single allocation, Sh18 billion, has been earmarked for the fertiliser subsidy programme, which the government says will help reduce input costs for smallholder farmers and improve crop yields.
Another Sh2 billion has been proposed for the seed subsidy programme, while Sh1 billion will support the coffee seedlings programme to revitalise the coffee subsector.
To strengthen agricultural value chains, the Treasury proposed Sh4.9 billion for the National Agricultural Value Chain Development Project. An additional Sh5.4 billion has been allocated to the Food Systems Resilience Project, while Sh1.6 billion will fund the Resilience for Food and Nutrition Security Programme.
“These investments will enhance adaptive livelihoods, diversify income sources and reduce vulnerabilities to climate shocks,” Mbadi said.
The budget also places significant emphasis on pastoralist
communities, with Sh3.3 billion proposed for the De-risking, Inclusion and
Value Enhancement of the Pastoralist Economy Programme.
Another Sh1.3 billion has been set aside for the Kenya Livestock Commercialisation Programme, while Sh400 million will support the Livestock Value Chain Support Project.
According to the Treasury, these initiatives are intended to improve market access, promote commercialisation, strengthen animal health services and enhance resilience among pastoral communities.
Mbadi said the government’s broader goal is to transform agriculture into a more productive and competitive sector capable of creating jobs and supporting industrial growth.
“Agriculture is not only about food production; it is a driver of employment, incomes and economic transformation. By investing strategically in productivity and resilience, we are laying the foundation for sustainable growth and shared prosperity,” he said.
The proposed allocations come at a time when the sector is facing mounting pressure from erratic weather patterns, rising input costs and concerns over food security.
If approved by Parliament, the funding will form part of the
government’s wider effort to stimulate economic growth while protecting
vulnerable households from the effects of climate change and market volatility.
