NAIROBI, Kenya, Jan 23 – The Institute of Public Finance (IPF), a Kenyan-based think tank, has warned that funding cuts to the agricultural sector could stall growth and worsen food insecurity.
In a report released on Friday, IPF said public spending on agriculture has failed to rise as expected, leaving the sector underfunded and forcing some projects to be sidelined.
In the 2024/25 financial year, the national government allocated Sh76.9 billion to agriculture, down from Sh94.2 billion in 2023/24, representing an 18.3 percent decline.
“Public spending on agriculture has not significantly increased as expected, thus failing to mirror the government’s policy commitment to boost productivity, build resilience to climate risks, and address rising food market uncertainties,” the report said.
IPF warned that abrupt fiscal contractions weaken medium-term planning and reduce the effectiveness of investments in critical areas such as irrigation, extension services, and mechanisation.
Despite the funding challenges, the sector recorded notable gains in the 2023/24 financial year, reflecting partial achievement of the Bottom-Up Economic Transformation Agenda (BETA) priorities.
Tea production rose by 17 percent, from 273.64 million kilogrammes to 321.09 million kilogrammes, boosting export earnings, with tea and flowers generating Sh54.7 billion, up from Sh44.6 billion the previous year.
Marketed milk volumes also increased by 6.9 percent, from 754.3 million litres in 2022 to 806.6 million litres in 2023, while maize production expanded to 2.35 million hectares under food security and crop diversification programmes.
The report said the coffee revitalisation programme distributed 49,000 seedlings across four counties, while rice production expanded to 24,404 hectares, supported by irrigation from the Thiba Dam.
Input support benefited more than 1.43 million farmers through subsidised fertiliser and the e-voucher system, while agricultural insurance covered 647,017 farmers across 41 counties.
Infrastructure and value chain investments included the construction of two potato cold storage facilities, two rice milling and packaging plants, and 18 County Aggregation and Industrial Parks (CAIPs).
