2024/25 Budget: Agriculture Sector Allocated Sh84.9 Billion

The National Treasury has unveiled the budget for the fiscal year 2024/25, allocating Sh84.9 billion to the agriculture sector. This represents a slight decline of 0.2 percent from the previous year’s allocation of Sh87 billion, which accounted for 2.3 percent of the overall budget. The current allocation constitutes 2.1 percent of the total budget of Sh4 trillion.

Allocation Breakdown and Key Initiatives

The Ministry of Agriculture has been allocated Sh54.6 billion to support various initiatives aimed at bolstering the sector.

Fertiliser Subsidy Programme

• Allocation: Sh10 billion
• Objective: To provide affordable fertiliser to farmers, enhancing productivity and reducing production costs.

Small Scale Irrigation and Value Addition Projects

• Allocation: Sh647 million
• Objective: To support irrigation projects and value addition, thereby increasing agricultural output and improving farmers’ incomes.

Emergency Locusts Response

• Allocation: Sh2.5 billion
• Objective: To combat locust infestations that threaten crops and livelihoods, ensuring food security and protecting farmer incomes.

Youth and Women in Agriculture

• Allocation: Sh2.4 billion
• Objective: To empower youth and women, providing them with resources and opportunities to engage in agricultural activities.

National Agricultural Value Chain Development Project

• Allocation: Sh6.1 billion
• Objective: To develop and strengthen agricultural value chains, ensuring farmers receive fair prices and reducing post-harvest losses.

Food Security and Crop Diversification Project

• Allocation: Sh642 million
• Objective: To promote food security and diversify crop production, reducing reliance on a few staple crops.

Livestock Resources Management and Development

• Allocation: Sh12.3 billion
• Objective: To enhance livestock management practices and support the development of livestock resources.

Leather Industrial Park-Kenanie

• Allocation: Sh300 million
• Objective: To develop the leather industry, creating jobs and adding value to livestock products.

MSMEs Agricultural Credit

• Allocation: Sh1 billion
• Objective: To provide credit facilities to Micro, Small, and Medium Enterprises (MSMEs) in agriculture, facilitating growth and innovation.

Blue Economy Priority Projects

• Allocation: Sh11.3 billion
• Objective: To develop the blue economy, focusing on sustainable use of ocean resources for economic growth, improved livelihoods, and jobs.

National Drought Emergency Fund

• Allocation: Sh182 million
• Objective: To support initiatives aimed at mitigating the impacts of drought, ensuring food security, and protecting vulnerable populations.

Strategic Focus

The allocation aims to provide adequate and affordable working capital to all farmers through cooperative societies and to deploy modern agricultural risk management instruments to ensure farming is profitable and income is predictable. By focusing on these key areas, the government intends to sustain agricultural productivity and support farmers in overcoming challenges.

The 2024/25 budget allocation for the agriculture sector reflects the government’s commitment to enhancing agricultural productivity, ensuring food security, and supporting the livelihoods of farmers. Despite the slight decrease in overall funding, strategic investments in critical areas are expected to yield significant benefits, driving sustainable growth and development in the sector.