The National Treasury has slashed the agriculture sector's allocation by KES7 billion in the 2025/2026 fiscal year—even as millions of Kenyans rely on the sector for food and income.

Treasury Cabinet Secretary John Mbadi announced a KES47.6 billion allocation to agriculture, down from KES54.6 billion in the current fiscal year. Presenting his first budget before Parliament on Thursday, Mbadi defended the reduced allocation, saying it will still fund critical programs that aim to bolster food security, uplift farmers’ productivity, and accelerate climate adaptation.

“The government has allocated KES47.6 billion for various programmes under the sector despite the fact that agriculture is devolved,” Mbadi noted. “This will move the country from food deficit to food surplus, reduce reliance on food imports, and revamp export crops.”

Winners in a Tight Budget

Top among the funded programs is the National Agricultural Value Chain Development Project (NAVCDP), which will receive KES10.2 billion, maintaining its pivotal role in strengthening agri-business ecosystems across the country.

The Fertiliser Subsidy Programme also retained its KES8 billion allocation from the previous year. The programme has helped reduce the cost of production for thousands of smallholder farmers and remains a cornerstone in the government’s push to lower food prices.

Other notable allocations include:

• Food Systems Resilience Project – KES5.8 billion
• Blue Economy Projects – KES5.2 billion
• Settlement of the Landless – KES3.8 billion
• De-risking and Inclusion of Pastoral Economies – KES2.3 billion
• Sugar Sector Reforms – KES1.5 billion
• Kenya Livestock Commercialization Programme – KES1.6 billion
• Food Security and Crop Diversification Project – KES1.2 billion

Additionally, land reform and irrigation-focused initiatives secured moderate allocations:

• Title Deeds Processing – KES1.1 billion
• Land Registry Digitisation – KES900 million
• Small-Scale Irrigation and Value Addition – KES800 million
• Ending Drought Emergency Project – KES300 million

Despite contributing 22.5 percent to Kenya’s GDP and employing millions, agriculture was allocated only about 3 percent of the national government’s KES4.2 trillion budget. This contrast has drawn concern from policy analysts and sector players who argue the budget does not reflect the strategic importance of agriculture in a country grappling with food insecurity and climate shocks.

“With persistent threats like droughts and floods, underfunding agriculture is short-sighted,” said a Nairobi-based food systems analyst. “This sector feeds the nation, literally and economically.”

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