2026/27 Budget Prioritizes Food Security, Irrigation And Farmer Support Programmes

By Staff Writer

Agriculture emerged as one of the biggest winners in the 2026/27 budget, with the government maintaining a fertilizer subsidy programme that Treasury says has saved farmers an estimated KSh 105 billion and strengthened food production nationwide.

The sector remains at the heart of the government’s Bottom-Up Economic Transformation Agenda (BETA), with the National Treasury highlighting major gains in crop and livestock production, farmer support programmes, food security interventions, and agricultural financing as evidence that investments made over the past three years are beginning to yield results.

Presenting the 2026/27 Budget Statement in Parliament, Treasury Cabinet Secretary John Mbadi described agriculture as one of the clearest success stories under the current administration, citing increased productivity and reduced production costs as key outcomes of government interventions.

“Fertilizer disbursements under the Fertilizer Subsidy Programme have increased substantially to 21.3 million bags in 2025 from 1.4 million bags disbursed in 2022, while the cost of a 50kg bag of fertilizer declined to KSh 2,500 from KSh 7,500,” Mbadi said.

The Treasury estimates that the subsidy programme has generated savings of approximately KSh 105 billion for farmers over two years, allowing them to reinvest in production and expand cultivated acreage.

For millions of households that depend on farming for income and food security, the continued support offers one of the most direct benefits contained in the 2026/27 budget.

The government says lower fertilizer prices have contributed to increased agricultural output across several value chains while improving affordability for both small-scale and commercial farmers.

Mbadi told lawmakers that agricultural production has recorded significant growth since the rollout of BETA, helping strengthen national food security and reduce vulnerability to supply shocks.

“The hard decisions are bearing fruits. Under the Bottom-Up Economic Transformation Agenda, we have recorded clear gains,” he said.

Beyond fertilizer subsidies, the government is continuing to invest in programmes aimed at supporting farmers with access to markets, extension services, climate-resilient farming practices, and modern production technologies.

Treasury officials argue that strengthening agriculture remains critical because the sector supports millions of livelihoods, contributes significantly to export earnings, and supplies raw materials for local industries.

The budget also maintains support for food security initiatives designed to improve availability of staple foods while reducing reliance on imports. Officials believe increased domestic production will help cushion consumers from price volatility and external shocks affecting global food markets.

Livestock development features prominently in the government’s agricultural agenda, particularly in arid and semi-arid regions where pastoralism remains the primary source of income for many households.

According to the Treasury, ongoing investments in livestock production are intended to improve animal health, increase productivity, strengthen value chains, and expand market opportunities for pastoralist communities.

The government highlighted continued efforts to improve livestock disease surveillance, vaccination programmes, breeding initiatives, and veterinary services to protect farmers from losses and improve the quality of livestock products.

Special attention is also being directed toward drought-prone counties, where livestock keepers have faced repeated climate-related challenges in recent years. Treasury says investments in resilience-building programmes are helping communities adapt to changing weather patterns while protecting livelihoods.

Mbadi said the government remains committed to supporting vulnerable communities through targeted interventions that improve food security and economic opportunities.

The budget also emphasizes value addition as a key pillar of agricultural transformation. The government plans to continue promoting agro-processing and agricultural manufacturing to create jobs, reduce post-harvest losses, and increase earnings for farmers.

Officials believe moving more agricultural products through local processing facilities will strengthen domestic industries while improving returns for producers.

Another area receiving attention is irrigation development. The government has identified expanded irrigation as an important strategy for increasing agricultural production and reducing dependence on rain-fed farming, particularly in areas frequently affected by drought.

Treasury officials say investments in irrigation infrastructure are expected to support year-round cultivation and enhance resilience against climate-related disruptions.

Agricultural financing remains another major priority. The government intends to continue supporting affordable credit programmes that enable farmers, agribusinesses, and cooperatives to invest in equipment, inputs, storage facilities, and value-addition projects.

The budget also aligns with broader efforts to create employment opportunities through agriculture, particularly for young people entering the labour market. Officials see agribusiness, value chains, processing, logistics, and agricultural technology as areas with significant potential for job creation.

In addition, the government says extension services and farmer training programmes will continue to receive support to improve productivity and encourage adoption of modern farming techniques.

The Treasury argues that agriculture remains one of the most effective sectors for delivering broad-based economic growth because gains in farm productivity directly affect rural incomes, food prices, employment, and industrial development.

“Kenyans want to see a Government that protects their livelihoods; supports farmers and small businesses; empowers the youth and women; and ensures that public resources are used prudently and transparently,” Mbadi said.

The sector’s strong showing in the 2026/27 budget comes against a backdrop of global uncertainty, rising commodity prices, and climate-related risks that continue to threaten food systems worldwide.

Despite those challenges, the government maintains that sustained investment in agriculture and livestock development will remain central to its economic strategy.

“Importantly, macroeconomic stability has been preserved, confidence in the economy strengthened, and the foundations for sustained growth are now firmly in place,” Mbadi told Parliament.