A national lobby representing agriculture industry players has called for higher budget allocations for the sector, stating that the amounts contained in the current Finance Bill fall far below the optimal level set in continental agreements that Kenya is a signatory to.
Through the Agriculture Sector Network (ASNET), experts pointed out that the figures released by the Treasury for 2024/2025 financials cut the sector allocation by 18.6 percent to Sh79.8 billion from Sh98 billion compared to the current financial year.
Speaking during a stakeholder conference earlier today in Nairobi that included the Parliamentary Committee on Agriculture, Livestock and Fisheries, Ministry of Agriculture and Livestock Development, and Treasury officials, ASNET CEO Ms. Agatha Thuo explained that the estimates made significant cuts in the State Departments for Agriculture and Livestock budgets.
“The allocation for Livestock dropped by 19.4 percent from Sh14.9 billion to Sh10.5 billion; Fisheries by 3.8 percent from Sh11.8 billion to 11.3 billion, Agriculture by 20.9 percent from Sh60.4 billion to Sh47.7 billion and Lands and the National Land Commission (NLC) by 6.6 percent from Sh10.8 billion to Sh10.1 billion,” she noted, adding that the industry had proposed that the government commits to the Malabo Protocol, which mandates an allocation of 10 percent of the total national budget.
Echoing her remarks, Dr Timothy Njagi, an Agriculture expert with Egerton University’s Tegemeo Institute said that the proposed budgetary allocation for the agriculture sector is still a far cry from the 10 percent threshold mandated by the Comprehensive Africa Agriculture Development Programme (CAADP) under the Malabo Protocol.
Dr Njagi’s analysis showed significant deficits for line Ministries, Departments, and Agencies based on their resource requirements. The Ministry of Lands and Physical Planning received 27 percent less than its optimal budget, while the State Departments of Livestock; Fisheries, Aquaculture, and Blue Economy; Crop Development & Research are 56 percent shy with the National Land Commission a staggering 69 percent adrift. All told the cuts run counter to the administration’s prioritization of agriculture as the bedrock for ending food insecurity, transforming the economy through import substitution, and increasing exports through value addition.
“While we call for funding to reach the optimal level, we urge the government to put in place mechanisms to attract investments from the private sector, donors, and civil society to cover the resource gaps in the sector. We also would like the budget ringfenced so the unforeseen effects of the floods do not compel the reallocation of funds away from the sector in subsequent supplementary budgets. If this happens, coupled with late disbursements, could replay the high cost of living and recent food inflation thereby reversing the gains made”, added Dr. Njagi.
The Chairman of the Agriculture, Livestock and Fisheries Parliamentary Committee, Dr. John Mutunga who is also the member of Parliament for Tigania West Constituency said he would present the recommendations to the Budget and Appropriations Committee and push for their adoption.
The stakeholders noted the negative impact of the floods on infrastructure will likely lead to increased production costs, curtail market access, increase the potential for pest and disease outbreaks, result in post-harvest losses, and compound macro-economic shocks that already increased the cost of doing business and market volatility.
Ms Agatha Thuo, CEO, of ASNET, asked the government to streamline regulations in the sector and address policy gaps that disincentivize private sector investments. While in praise of the fertilizer subsidy program, she urged the government to incorporate agro-dealers in the last-mile distribution of the commodity to avoid job losses and enhance ease of accessibility. She pointed out the ongoing distribution of subsidized programs currently managed by the National Cereals and Produce Board (NCPB) with an allocation of Sh10 billion and the Livestock Value Chain Program which procures and distributes milk coolers with an allocation of Sh1 billion as prime cases enhanced by public-private partnerships.
“We implore the government to diversify public spending that crowds out the private sector and invest in enabling public goods such as infrastructure, reduction in the cost of production to improve local competitiveness, central data collection and management for use by potential investors and less onerous regulation that come with numerous levies,” she said adding that the private sector ought to be engaged in the establishment of the Agro-Processing Parks as investors and off-takers and to ascertain compliance to market requirements.
