Agriculture Sector allocated Ksh 60 billion in the Budget


By Marion Wagaki, June 14, 2021

The government on Thursday June 10, presented a Ksh 3.6 trillion budget even as the economy is expected to grow at 6.3 percent  after it dwindled to  less than 4 percent .

Treasury Cabinet Ukur Yatani said that in 2020 the economy was affected by the outbreak of COVID 19 pandemic and consequently, economic growth is estimated to have slowed down to 0.6 percent in 2020 from 5.4 percent in 2019.

On matters Food Security, the CS said Government’s efforts to make food cheap and available to all Kenyans are bearing fruits with various initiatives aimed at supporting farming, livestock rearing and fish production.

“More farmers are now accessing subsidized inputs to lower their cost of production and boost earnings”, he said.

 In the Financial Year 2021/22 budget, Yatani said the government has set aside and allocated Ksh 60 billion to support aspirations to attain 100 percent food and nutrition security.

Out of this, the CS noted that Ksh 7 billion will go towards the National Agricultural and Rural Inclusivity Project; Ksh 2.7 billion for the Kenya Cereal Enhancement Programme and  Ksh 1.8 billion has been proposed for the  Emergency Locusts Response.

Another Ksh 1.5 billion will go towards the National Value Chain Support Programme; Ksh 1.5 billion for the Agricultural Sector Development Support Programme II (ASDSP), Ksh 1.5 billion for the Small Scale Irrigation and Value Addition Project and Ksh 620 million for Food Security and Crop Diversification Project.

On Livestock production improvement, CS Yatani has proposed Ksh 3.0 billion for Free Disease Holding Ground in Lamu and also proposed Ksh 488.1 million for the Regional Pastoral Livelihood Resilience Project; Kenya Livestock Commercialization Program will receive Ksh 455.0 million, the Livestock Value Chain Support Project Ksh 163 million while the Livestock Production under “Big Four” initiative, Ksh 156.2 million.

Yatani has further gone ahead to say that in order to enhance animal diseases control, the government has set aside Ksh 180. million for Sustainable Tsetse and Trypanosomiasis Free Areas in Kenya, Ksh 131.4 million for the Disease-Free Zones Program and Ksh 60 million for modernization of the Foot and Mouth Disease Laboratory and related activities.

“The realization of the food and nutrition security also relies heavily on the sustainable utilization of the blue economy resources and in order to promote this, I have proposed an allocation of Ksh 3.2 billion for the Aquaculture Business Development Project and Ksh  3.4 billion for Kenya Marine Fisheries & Socio-Economic  Development Project”

 For Exploitation of Living Resources under the Blue Economy the CS said that Ksh 2.1 billion has been set aside while the construction of Fish processing plant in lamu will get ksh 1 billion

The Coastal Fisheries Infrastructure Development will receive Ksh 290 million while rehabilitation of Fish Landing Sites in Lake Victoria will get Ksh 326.6 million 

Aquaculture Technology Development and Innovation Transfers will get Ksh 150. Million and Development of Blue Economy Initiatives Ksh 195.3 million  

“In order to increase agricultural productivity and enhance resilience to climate change risks in targeted smallholder farming and pastoral communities in Kenya, I have set aside Ksh 8.9 billion for the Climate Smart Agricultural Productivity Project and Ksh 1.1 billion to enhance drought resilience and sustainable livelihood.

Ending Drought Emergencies in Kenya will use Ksh 178.0 million, CS Yatani said and also proposed an allocation of Ksh 529.5 million for the Livestock and Crop Insurance Scheme to reduce the vulnerabilities of Kenyan farmers to diseases and natural disasters.

Other proposed allocations in related subsectors of agriculture include Ksh 100 million for revitalization of cotton industry, cooperative cotton ginneries will be modernized to the tune of Ksh59.2 million while KshSh50 million will be expended for the Cotton Development as subsidy and extension support.

The embryo Transfer Project and for construction and refurbishment of the Leather Science Institute will receive Sh200 million and Sh65 million respectively while Ksh 150 million will be set aside for establishment of Liquid Nitrogen Plant.

 Yatani promised that the government will make more investments towards the revival and enhancement of output of major cash crop such as coffee industry which will receive Ksh 210.4 million

The budget zeroed in on priority programmes under the “Big Four” Agenda which is a critical path to supporting sustainable economic recovery.

Apart from Agriculture which is under Food and Nutrition security Pillar, Ksh 47.7 billion was allocated for Universal Health Coverage,  Ksh 20.5 billion for Manufacturing and  Ksh 13.9 billion for Affordable Housing.