The Cabinet Secretary for the National Treasury and Economic Planning, John Mbadi, unveiled a Sh4.29 trillion government Budget for the 2025/26 Financial Year. He proposed substantial investments across various agricultural sub-sectors as listed below.
- Overall Agricultural Transformation: KShs 47.6 billion allocated for various programs.
- Fertilizer Subsidy Programme: KShs 8.0 billion (Continuing support for input affordability).
- National Agricultural Value Chain Development Project: KShs 10.2 billion (Focus on enhancing value chains).
- Small Scale Irrigation and Value Addition Project: KShs 800.0 million (Boosting resilience and processing).
- Food Security and Crop Diversification Project: KShs 1.2 billion.
- Food Systems Resilience Project: KShs 5.8 billion (Addressing climate shocks).
- Livestock Sector:
- De-Risking, Inclusion & Value Enhancement of Pastoral Economies: KShs 2.3 billion.
- Kenya Livestock Commercialization Programme (KeLCoP): KShs 1.6 billion.
- Livestock Value Chain Support Project: KShs 280 million.
- Development Leather Industrial Park at Kenanie: KShs 340 million (Adding value to livestock products).
- Excess Milk Mop-up: KShs 400 million (Supporting dairy farmers).
- Modernization of Milk Factories (Runyenjes & Narok): KShs 150 million.
- Blue Economy & Fisheries: KShs 8.2 billion allocated.
- Aquaculture Business Development Project: KShs 2.3 billion.
- Kenya Marine Fisheries & Socio-Economic Development Project: KShs 2.4 billion.
- Kabonyo Fisheries & Aquaculture Training Centre: KShs 500 million.
- Climate Resilience & Drought Management:
- Towards Ending Drought Emergencies (TEDE) project: KShs 318 million.
- Resilience for Food & Nutrition Security Program in Horn of Africa: KShs 1.3 billion.
- Kenya Financing Locally Led Climate Action Project: KShs 11.5 billion (Includes agricultural resilience).
- Land Reforms and Security: Crucial for Agricultural Investment.
- Settlement of the Landless: KShs 3.8 billion.
- Processing and Registration of Title Deeds: KShs 1.1 billion.
- Digitization of Land Registries: KShs 712 million.
- Geo Referencing of Land Parcels: KShs 200 million.
- Construction of Land Registries: KShs 220 million.
- Cash Crops & Value Addition:
- Coffee Cherry Revolving Fund: KShs 2.0 billion.
- Coffee Debt Waivers: KShs 2.0 billion.
- Sugar Sector Reforms: KShs 1.5 billion.
- Modernization and Revitalization of Cotton Ginneries: KShs 120 million.
- Horticultural Produce Compliance Enhancement Project: KShs 245 million.
- National Edible Oil Crops Promotion Project: KShs 300 million.
- MSME Support (Including Agri-MSMEs):
- Financial Inclusion Fund (Hustler Fund): Additional KShs 300 million (Total fund significantly supports agri-MSMEs).
- Rural Kenya Financial Inclusion Facility: KShs 1.3 billion.
Tax Measures Supporting Agriculture:
- Wheat & Tea Inputs: Secured extension of duty remission on wheat imports (10% duty instead of 35%), conditional on millers first buying local wheat. Lower duty (10%) on tea packaging materials.
- Animal Feed Inputs: Extension of duty-free importation of inputs for animal feed production under the EAC Duty Remission Scheme.
- Leather Sector: Allowed import duty rate of 35% (instead of higher CET) on leather products and duty remission on chemicals for leather processing.
