• To this end, cotton was allocated Sh120 million, coconut Sh62 million, Sh35 million for cashew nut while Sh150 million went to pyrethrum farming.
• Meanwhile, State department for livestock was allocated Sh18.8 billion for livestock resources management and development.
The Agriculture sector has been allocated Sh49.9 billion in the 2023-24 budget proposals presented on Thursday in Parliament.
President William Ruto’s maiden budget of Sh3.68 trillion is an increase of Sh251 billion from the Sh3.39 trillion his predecessor Uhuru Kenyatta utilised in his final year in office.
Out of the Sh49.9 billion, the State Department for Crop Development will spend Sh46.4 billion.
National Treasury Cabinet Secretary Njuguna Ndung’u said the amount will go towards enhancing food security in the country through climate change mitigation and adaptation to reduce the cost of living.
Fertiliser subsidy and climate change mitigation are the priority areas of expenditure even though budgeted allocated is a Sh10 billion less than the Sh60 billion allocated in the 2021-22 budget.
The subsidy programme received Sh5 billion to cushion farmers against high cost of the commodity and boost food production.
Ndungu said Agriculture transformation is among five strategic priority areas with the largest economic impact where Ruto's first budget will focus with the aim of raising households’ welfare.
Others are micro enterprises, housing and settlement, healthcare and digital superhighway, and creative industry.
"As part of the country’s long-term food security plan, the government will work with the private sector to continue to subsidise fertiliser in order to make fertiliser available and improve productivity in counties,” Ndungu said.
He added that this intervention is also aimed at creating jobs as agriculture has the highest employment multiplier effect owing to its strong forward and backward linkages to other sectors of the economy.
The CS noted that in order to maximise the benefits from cash crops, the government will make further investments towards their revival and enhancement of output.
To this end, cotton was allocated Sh120 million, coconut Sh62 million, Sh35 million for cashew nut while Sh150 million went to pyrethrum farming.
"I also propose budget allocations of Sh100 million for modernisation of cooperative cotton ginneries, Sh134 million for National Edible Oil Crops Promotion Project and Sh270 million for sugar reforms support project,” Ndungu said.
Meanwhile, State department for livestock was allocated Sh18.8 billion for livestock resources management and development.
General administration planning and support services will take Sh7.5 billion.
The State Department for Blue Economy and Fisheries received Sh11.8 billion, fisheries development and management got Sh9 billion while Sh255.1 million will be utilised for general administration, planning and support services.
Development and coordination of the blue economy got Sh2.4 billion, Cooperatives received Sh2 billion for development and management while the State Department of Irrigation received Sh24.7 billion.
Some Sh31.5 billion will be utilised for development and management, Sh1.6 billion for agribusiness and information management while Sh5.7 billion will go towards agricultural research and development.
Other notable allocation in the budget include Sh1.4 billion for small-scale irrigation and value addition projects.
The Kenya cereal enhancement programme received Sh2.1 billion, Sh2.7 billion for the national Agricultural and Rural Inclusivity project and Sh8.6 billion for the National Agricultural Value Chain Development Project (NAVCDP).
Response to emergence of locusts has received Sh2.8 billion, while climate smart agricultural productivity project was given Sh1.5 billion.
Enhancement for food and nutrition security was allocated Sh1.3 billion while the blue economy priority project got Sh8.1 billion.
The CS said Sh7.5 billion will go towards improvement of livestock production, Sh350 million for leather industry park development, Sh500 for Agriculture Support programme and Sh496 million for the food security and crop diversification programme.
The government also allocated Sh3 billion to finish up 181 stalled markets that were started in 2008.
Additionally, the government has allocated Sh4.7 billion as conditional grants to counties to establish 47 aggregation and industrial parks across all counties with the aim of helping farmers in value addition and market access.