The National Assembly Agriculture and Livestock Committee is crying foul of funding shortfalls of up to Sh14.53 billion in the coming Sh4.2 trillion budget.

In the Budget and Appropriations Committee’s just-published report, it is highlighted that the food security and crop diversification project has a Sh1.5 billion funding shortfall while fertiliser subsidy has an under funding of Sh10 billion, a situation that is likely to counter the country’s food security efforts according to the stakeholders.

“These financial gaps could impact agricultural productivity, food availability and overall economic stability,” the report reads in part. Notably, the country’s agricultural sector has recently been able to record an impressive performance, even cushioning the economy as other sectors continue to struggle.

Kenya National Bureau of Statistics (KNBS) shows that the sector grew by 4.2 per cent in the third quarter of 2024, albeit a decline from 5.1 per cent growth recorded in the same quarter of 2023. 

National Livestock Development and Promotion service (NLPDS) also has been reported to not have been allocated any amount in the budget, despite requiring Sh1.33 billion owing to its vital role in coordinating the development, promotion and marketing of livestock and livestock products both domestically and internationally.

“The absence of financial support could hinder key initiatives aimed at enhancing the livestock sector, improving market access and ensuring sustainable growth,” the report reads in part.

Kenya Seed Company, which plays a significant role in providing subsidised maize seed prices to help farmers manage seed costs according to the committee has also filed an underfunding of Sh1.7 billion which they argue could impact the timely access to essential planting materials.

“Without adequate support, agricultural, productivity and food security could be affected, emphasising the urgent need for budgetary intervention to sustain this subsidy programme and protect farmers from financial strain,” the committee argues in the report.  These funding shortfalls, they say, are likely to hinder the Kenya Kwanza Administration’s ambitious plan that seeks to place agriculture as the key driver of the economy.

In light of this, the country’s food security is also likely to be impacted due to poor yields leading to a hike in food prices, a factor that is likely to affect Kenyans primarily at the bottom of the economic pyramid.

At a larger perspective the sector has only been allocated Sh78 billion in the Sh4.2 trillion budget, a decrease from Sh79.18 billion allocation in the previous financial year. 

The amount, according to a separate document presented by the Parliamentary Budget Office (PBO), has been designed in the sense that Sh8 billion will be allocated for the fertiliser subsidy programme Sh10 billion towards the National Agricultural Value Chain Development Project and Sh5.8 billion for Food Systems Resilience Project.

Additionally, Sh3 billion will be channeled towards Value Enhancement of Pastoral Economies Sh4.8 billion for Fisheries and Aquaculture Development, Sh2 billion for support to sugar sector reforms, and Sh2 billion for the coffee cherry revolving fund, among others.