Farmers to benefit as Government increases agricultural financing

ANITA OMWENGA-KNA 

The Government has increased agricultural financing by Sh3.8 billion to sustainably support agri-food systems in the country.

Agriculture Principal Secretary Dr. Kipronoh Ronoh stated that the current fiscal allocation for the agriculture sector has risen to Sh77.7 billion, up from Sh73.9 billion in the previous fiscal year.

This increase is expected to strengthen the entire agricultural value chain— from production to market access—while improving food security and boosting job creation.

He emphasized that all agricultural value chain actors, especially farmers, who are the sector’s principal stakeholders, require financing to purchase essential farm inputs such as seeds and fertilizers, lease additional agricultural land, buy livestock, and cover harvesting and marketing costs.

Ronoh noted that the increased financing aims to enhance sustainable productivity in agri-food systems, reduce post-harvest losses, and empower smallholder farmers, particularly women and youth.

“Over the past year, the government has supported farmers by improving their access to inputs such as fertilizers, extension services, and agricultural mechanization,” he said.

Ronoh made these remarks during the media launch of the Financing Agri-food Systems Sustainably (FINAS) Dialogue 2025 Summit, scheduled to take place in May this year.

“At a time when African governments are increasingly committed to self-sufficient financing mechanisms, FINAS 2025 Dialogue, stands as a vital platform to reimagine agri-food financing through innovative models, digital transformation and strategic partnerships,” Ronoh said.

He said the ministry continues to prioritize the implementation of programs and policies to realize the aspirations set under the government’s Bottom-UP Economic Agenda (BETA) aiming to achieve food security, reducing food imports, and increasing exports. 

He said BETA prioritizes structured engagement with private sector players through initiatives such as the FINAS dialogue.

“These forums provide a platform to synchronize stakeholder efforts and monitor progress. We remain steadfast in our commitment to collaborate with the private sector in transforming agri-food systems,” he said.

The PS divulged that the sustainable financing and funding of agriculture stem from the FINAS 2024 dialogue. The framework aims to optimise the consolidation and use of public finances to support food systems development in Kenya.

“The upcoming FINAS Summit provides a platform and an opportunity to explore innovative financial solutions and pathways to securing the growth and sustainability for agri-food systems on the continent,” he said.

The PS observed that the global funding landscape is shifting, and the agricultural sector is one of those sectors that have been significantly affected by the policy shift from development partners.

He said the government is exploring innovative solutions, such as blended financing, green bonds, diaspora remittances, leveraging domestic resources and increased private-sector participation, to bridge these financial gaps.

“By embracing such models, we believe we can ensure the longevity and resilience of our agri-food systems” he said, adding that this reality compels the government to rethink our existing financing and investment models.

FINAS Summit Director Dr. Charity Mutegi said the FINAS Summit will bring together stakeholders from various sectors, including policy makers, the public and private sectors, financial institutions, agricultural technology providers, and farmers, to discuss challenges and solutions in financing Agri-food systems sustainability.