Kenya’s agricultural sector emerged among the protected sectors in the 2026/27 national budget after the government retained major funding for food production and farmer support programmes despite wider fiscal pressures.
Presenting the KSh 4.8 trillion budget framework for the 2026/27 financial year, the National Treasury allocated KSh 28 billion toward food security interventions, reinforcing agriculture’s place at the centre of the government’s economic agenda under the Bottom-Up Economic Transformation Agenda (BETA).
The allocation comes at a time when the government is pursuing tighter public spending controls under a zero-based budgeting framework that requires every expenditure item to be justified before approval.
Among the flagship allocations under the food security vote is the Fertiliser Subsidy Programme, which received KSh 18 billion, maintaining support at nearly the same level despite growing pressure to reduce public expenditure.
Other major interventions include KSh 5.4 billion for the Food Systems Resilience Project and KSh 4.6 billion for Agricultural Value Chains Development, aimed at strengthening production systems, boosting climate resilience and improving market access for farmers.
Treasury Cabinet Secretary John Mbadi said the government deliberately insulated agriculture from significant cuts because of its importance to household incomes, food supply and economic growth.
“We have prioritised stability in the agricultural sector by avoiding major cuts, keeping the fertiliser subsidy steady at approximately KSh18 billion and sugar reforms at KSh2.5 billion. While Parliament reduced the coffee cherry allocation, we are shifting our focus to address critical coffee debt and expand seed provisions,” Mbadi said.
The budget also introduces KSh 2.5 billion for sugar sector reforms, a move expected to support ongoing efforts to revitalise Kenya’s sugar industry, improve mill performance and strengthen farmer earnings.
According to the Treasury, adjustments were made in other sectors to preserve critical agricultural spending. Several commercially viable energy projects were moved away from direct Exchequer financing and redirected to alternative financing structures, including the National Infrastructure Fund and Public-Private Partnerships (PPPs), creating room to maintain support for agriculture.
The renewed focus on agriculture follows concerns raised earlier this year over insufficient funding for the sector despite its strategic role in economic transformation. Parliamentary budget reviews had warned that agriculture remained underfunded relative to its contribution to employment, exports and food security.
Government projections indicate the agricultural investments will support increased food production, expand access to farm inputs, strengthen value chains and cushion farmers against climate-related shocks.
Agriculture remains one of Kenya’s most important economic sectors, contributing significantly to employment and rural livelihoods while continuing to anchor the country’s food security strategy.
As implementation begins in July, farmers and sector players will be watching closely to see whether sustained subsidy support and targeted investments translate into lower production costs, stronger productivity and improved incomes across the country.
Author: Moureen Koech
Moureen Koech is a passionate Digital Journalist, an adept Agribusiness Writer with a keen eye for news and an impactful story-teller,whose stories provide key value to Agripreneurs and stakeholders in the Agricultural sector
