Kenya’s Agriculture Budget Shortfall 2025/26

Kenya’s agriculture and livestock sectors, the backbone of the nation’s economy, are facing a critical funding gap in the 2025/26 financial year. The Ministry of Agriculture and Livestock Development requested Sh106 billion to fund essential programs, but Parliament’s budget estimates allocated only Sh58.2 billion—a shortfall of nearly 45%. This gap, as noted by the Departmental Committee on Agriculture and Livestock, threatens the sustainability of key initiatives, from fertilizer subsidies to livestock development. For stakeholders like farmers, cooperatives, and agribusinesses such as Seed Farm Kenya, this shortfall demands innovative solutions to ensure resilience and growth in a sector that supports over 20% of Kenya’s GDP and millions of livelihoods.

Understanding the Budget Shortfall

The allocated Sh58.2 billion is split between Sh48.25 billion for the State Department for Agriculture and Sh9.99 billion for Livestock Development. While this marks a slight increase from last year’s Sh57.06 billion, it falls far short of addressing critical needs. Key programs are underfunded, including:

• Fertilizer Subsidy Programme: Allocated Sh8 billion against a required Sh18 billion, limiting access to affordable inputs for farmers.
• Tea Reforms Project: Requested Sh4.5 billion but received no funding, jeopardizing the tea industry’s modernization efforts.
• Livestock Initiatives: Programs like the Livestock Feedlot and Resilient African Feed and Fodder Systems (RAFFS) face reduced support, impacting pastoral communities.
• Pending Bills: The sector carries Sh11.8 billion in pending bills (Sh7.88 billion for agriculture, Sh4 billion for livestock), straining financial operations.

This shortfall jeopardizes Kenya’s Bottom-Up Economic Transformation Agenda (BETA), which prioritizes inclusive rural development and food security. Without adequate funding, institutions like the Kenya Agricultural and Livestock Research Organisation (KALRO) and the Agricultural Finance Corporation (AFC) may struggle to deliver research and credit support to farmers.

Challenges Facing Kenya’s Agriculture Sector

• Limited Access to Inputs: Reduced subsidies for fertilizers and seeds make it harder for smallholder farmers to afford quality inputs, potentially lowering crop yields and exacerbating food insecurity.
• Stunted Research and Innovation: Underfunded research through KALRO could slow the development of climate-resilient crop varieties and livestock breeds, critical for adapting to drought and flooding.
• Financial Strain: Pending bills create delays in payments to suppliers, affecting the supply chain for seeds, fertilizers, and other inputs.
• Climate and Food Security Risks: Insufficient funding for programs addressing climate change and livestock feed could worsen vulnerabilities in rural communities, where agriculture is a primary livelihood.

Opportunities for Resilience and Growth

Despite these challenges, the budget shortfall presents opportunities for Kenya’s agriculture and livestock sectors to innovate and collaborate. Stakeholders, including farmers, cooperatives, agribusinesses like Seed Farm Kenya, and NGOs, can drive progress through:

• Climate-Resilient Solutions: Companies like Seed Farm Kenya and others can develop and distribute drought-resistant seeds and livestock feed solutions tailored to Kenya’s diverse agroecological zones. For example, high-yielding maize and sorghum varieties can boost productivity despite climate challenges.
• Farmer Training and Extension Services: With government extension services strained, private-sector players and NGOs can offer training on sustainable farming practices, soil health, and water management. Cooperatives can also facilitate knowledge-sharing among farmers.
• Public-Private Partnerships: Collaborations with international organizations like the FAO or local initiatives like RAFFS can provide funding and expertise. For instance, partnerships could support livestock feedlot programs or irrigation projects to enhance productivity.
• Digital Agriculture: Mobile apps and digital platforms for weather forecasts, market prices, and input access can empower farmers. Agribusinesses can invest in technology to bridge gaps in government support.
• Policy Advocacy: Stakeholders, including industry leaders and farmer associations, can advocate for supplementary funding or better coordination between agriculture and irrigation programs, as recommended by the Departmental Committee.

The Role of Stakeholders in Bridging the Gap

The budget shortfall underscores the need for collective action. Smallholder farmers, who form the backbone of Kenyan agriculture, require affordable inputs and credit access to maintain productivity. Agribusinesses like Seed Farm Kenya can support this by offering cost-effective seeds and flexible payment options. Cooperatives can aggregate farmer needs to negotiate better deals with suppliers. Meanwhile, policymakers must prioritize clearing pending bills and securing additional funding to stabilize the sector.

The 2025/26 budget shortfall is a wake-up call for Kenya’s agriculture sector, but it’s also an opportunity for innovation. Seed Farm Kenya invites farmers, cooperatives, and partners to collaborate in building a resilient agricultural future. Visit our website at Seedfarm.co.ke to explore our range of high-quality seeds, access farmer resources, and join our mission to transform Kenyan agriculture.