As President William Ruto marks his two-year anniversary in office, his administration is spotlighted for notable achievements in reducing the cost of essential food items, particularly maize flour. The cost of a 2kg packet of maize flour, a staple in many Kenyan households, has decreased from an average of Sh169.9 in 2022 to Sh130.38 in 2024. This 23.3% reduction reflects significant strides in agricultural reform aimed at improving food security and lowering the cost of living.
When Ruto assumed office, food expenditure was a major concern, constituting 54% of household budgets. He promised to prioritize agricultural reforms to address this issue. The administration’s strategy shifted focus from merely subsidizing consumer costs to enhancing agricultural productivity and reducing production costs. This approach aimed to tackle food insecurity by boosting local production and reducing reliance on imports.
Central to this strategy was the enhancement of the fertilizer subsidy program. Under this initiative, the government increased the availability of low-cost fertilizers to farmers through digital registration. This effort was designed to improve crop yields and, consequently, lower food prices. The impact of this program has been substantial. There has been a 514% increase in the number of fertilizer bags distributed to farmers and a 58% reduction in the cost per bag of fertilizer. This increase in fertilizer use has contributed to a 38.9% rise in maize production, reducing the need for imports by 33.7% and leading to a significant reduction in maize flour prices.
The government’s efforts have also led to a notable reduction in maize imports. From 32.04 million 50kg bags in 2022, imports fell to 21.24 million bags in 2023. This decrease in imports, combined with a rise in domestic maize production from 61.74 million to 85.7 million 50kg bags, has been crucial in lowering the price of maize flour.
Beyond subsidies, the Ruto administration has worked on improving agricultural value chains. For instance, VAT on tea purchased from local factories for value addition has been scrapped, and support has been provided to MSMEs involved in specialty tea production. These measures have led to an 11.8% increase in earnings for smallholder tea farmers, from Sh59.02 billion in 2022 to Sh66 billion in 2024.
The administration has also expanded its support to other agricultural sectors. The distribution of 556 metric tonnes of sunflower seeds across 34 counties has resulted in an 8.3% increase in sunflower farming acreage. Additionally, investments in seed multiplication and coconut cultivation are fostering further growth in these areas.
In the livestock sector, the government has significantly increased livestock insurance coverage by 65.5%, rising from 304,211 policies in 2022 to 503,469 in 2024. This expansion has improved the utilization of processing capacity for skins, increasing it from 40% to 70%. The guaranteed minimum price for milk has also been raised from Sh37 to Sh50 per litre, a 35% increase, contributing to a 13% rise in milk production.
Rice production has similarly grown by 19%, from 192,299 metric tonnes in 2023 to 229,064 metric tonnes in 2024. This growth reflects the administration’s broader efforts to boost agricultural output across various sectors.
Overall, the Ruto administration’s focus on agricultural reform, from enhancing fertilizer subsidies to improving value chains and expanding livestock insurance, has played a crucial role in reducing maize flour prices. These efforts not only support lower food costs but also contribute to broader economic benefits, demonstrating a commitment to tackling food insecurity and supporting Kenya’s agricultural sector.
