A total of 22 out of 36 projects being undertaken by the State Department for Agriculture have been left without funding in proposed budget cuts, a report of a House committee shows.
The Departmental Committee on Agriculture and Livestock Report on the consideration of Supplementary Estimates No. I for Financial Year 2024/25 noted that of the 14 projects that have not been touched, only two are government-funded.
“Of the 14 projects to be implemented, only two are government funded at Sh 11 billion while the rest are donor funded at Sh17 billion,” the report by the committee chaired by Tigania West MP John Kanyuithia Mutunga said.
The report noted that the approved budgetary allocation for the State Department for Agriculture for FY 2024/25 is Sh45.73 billion which consists of a recurrent expenditure of Sh15.68 billion and development expenditure of Sh30.041 billion.
“The FY 2024/25 Supplementary Estimates I proposes to reduce the allocation to Sh44.03 billion, a reduction of Sh1.7billion which represents a decrease of four per cent,” the report added.
The Supplementary Estimates No. I for FY 2024/25 proposed to reduce the recurrent expenditure from Sh15.69 billion to Sh15.67 billion, a reduction of Sh15.8 million.
The State Department has an approved development allocation of Sh30.04 billion for FY 2024/25 which is being revised to Sh28.35 billion, a reduction of Sh1.69 billion which represents a six percent reduction.
The said key projects affected by the changes are: Sugar Reforms Support Project funding has been increased from Sh961.3 million to Sh1 billion and the Fertiliser Subsidy Programme whose funding has increased from Sh5.5 billion to Sh10 billion.
It further said the changes have resulted in a reduction of Sh 1 billion for the MSMEs Agricultural Credit; a reduction of Sh120 million for the Cotton Industry Revitalisation Project; a reduction of Sh65 million for the Cashew Nut Revitalisation Project, a reduction of Sh150 million for the Pyrethrum Industry Revitalisation Project; a reduction of Sh90 million for the Coconut Revitalisation Project; and a reduction of Sh642 million for Food Security and Crop Diversification Project.