The government has allocated Ksh47.6 billion to the country’s agricultural sector to reduce food imports and revamp export crops.

The National Treasury has allocated Ksh10.2 billion to the National Agricultural Value Chain Development Project (NAVCDP), Ksh8 billion towards the fertiliser subsidy program, Ksh5.8 billion towards the food systems resilient project, Ksh5.2 billion for blue economy projects, Ksh3.8 billion for settlement of the landless, and Ksh2.3 billion for the de-risking, inclusion & value enhancement of pastoral economies programme.

Further, it has allocated Ksh1.6 billion for the Kenya Livestock Commercialisation Programme, Ksh1.5 billion for sugar reforms, Ksh1.2 billion for a food security and crop diversification project, Ksh1.1 billion for processing and registration of title deeds, Ksh0.9 billion for digitisation and construction of land registries, Ksh0.8 billion for small-scale irrigation and value addition projects, and Ksh0.3 billion towards ending The Drought Emergency in Kenya (TWENDE).

Addressing Parliament on Thursday, June 11, 2025, National Treasury Cabinet Secretary (CS) John Mbadi pointed to the significant drop in the country’s inflation rate to 3.8 per cent in May 2025, down from a peak of 9.6 per cent recorded in October 2022.

He attributed the easing of inflation to prudent fiscal management and targeted policy interventions that have helped tame inflationary pressures and restore macroeconomic stability.

“Inflation rates have declined to 3.8 per cent in May 2025 from a peak of 9.6 per cent in October 2022. In response to the decline in inflation, CBK has gradually eased monetary policy, lowering the CBK bank rates from 13 per cent in August 2024 to 9.75 per cent in June 2025.” Mbadi said.

Housing sector 

The government has also allocated Ksh120.2 billion towards housing and settlement to create jobs for youth directly in the construction sector and the production of building products.

Ksh64.5 billion towards construction and affordable units, Ksh16.5 billion for social and physical infrastructure, Ksh13.4 billion for the Kenya Urban Support Programme, Ksh10.5 billion towards the construction of social housing units, Ksh7.2 billion for the Kenya Informal Settlement Improvement Project – Phase II, Ksh3.5 billion for institutional housing, and Ksh0.45 billion for the construction of county headquarters.

Digital economy

The government has also allocated Ksh12.7 billion towards the digital superhighway and creative economy to boost productivity and competitiveness under the BETA agenda.

Ksh3.7 billion for the Kenya Digital Economy Acceleration Project, Ksh3.1 billion for the Konza Data Centre and Smart City Facilities, Ksh2.3 billion for the construction of KAIST at Konza Technopolis, Ksh1.4 billion for the Digital Superhighway, Government Shared Services, and Digital Hubs, Ksh1.0 billion toward Maintenance & Rehabilitation Connectivity Networks, and Ksh0.7 billion for E-government procurement.