Kenya increases allocation of Agriculture sector for 2021/22 by 5%

KENYA – Kenya’s National Treasury Cabinet Secretary Ukur Yatani, on June, 10th 2021 presented the 2021/2022 budget statement at a time when the global economy is emerging from recession due to the pandemic.

The Ksh 3.6 trillion (US$33.3 billion) budget will see the government inject more funds to catalyse growth in the agriculture industry – one of the pillars in its Big Four Agenda.

The sector, which experienced resurgent growth of slightly over 1% in the third quarter of 2020 mainly attributable to tea, fruits and sugarcane, has been allocated an estimated Ksh60 billion (US$556m), 5% from Ksh 52.8 billion (US$489m) in 2020/21.

Out of this, the CS noted, Ksh 7 billion (US$64m) will go towards the National Agricultural and Rural Inclusivity Project; Ksh 2.7 billion (US$25m) for the Kenya Cereal Enhancement Programme and Ksh 1.8 billion (US$16m) has been proposed for the Emergency Locusts Response, reports Kenya News Agency.

Another Ksh 1.5 billion (US$13.9m) will go towards the National Value Chain Support Programme; Ksh 1.5 billion (US$13.9m) for the Agricultural Sector Development Support Programme II (ASDSP), Ksh 1.5 billion (US$13.9m) for the Small-Scale Irrigation and Value Addition Project and Ksh 620 million (US$5.75m) for Food Security and Crop Diversification Project.

On Livestock production improvement, the government has proposed Ksh 3.0 billion (US$27m) for Free Disease Holding Ground in Lamu and also proposed Ksh 488.1 million (US$4.5m) for the Regional Pastoral Livelihood Resilience Project;

Kenya Livestock Commercialization Program will receive Ksh 455.0 million (US$4.2m), the Livestock Value Chain Support Project Ksh 163 million (US$1.15m) while the Livestock Production under “Big Four” initiative, Ksh 156.2 million (US$1.45m).

Yatani noted that in order to enhance animal diseases control, the government has set aside Ksh 180 million (US$1.67m) for Sustainable Tsetse and   Trypanosomiasis Free Areas in Kenya, Ksh 131.4 million (US$1.22m) for the Disease-Free Zones Program and Ksh 60 million for modernization of the Foot and Mouth Disease Laboratory and related activities.

“The realization of the food and nutrition security also relies heavily on the sustainable utilization of the blue economy resources and in order to promote this, I have proposed an allocation of Ksh 3.2 billion (US$29.6m) for the Aquaculture Business Development Project and Ksh 3.4 billion (US$31.51m) for Kenya Marine Fisheries & Socio-Economic Development Project,” Yatani noted.

For Exploitation of Living Resources under the Blue Economy, the CS said that Ksh 2.1 billion (US$19.46m) has been set aside while the construction of Fish processing plant in lamu will get Ksh 1 billion (US$9.27m).

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The Coastal Fisheries Infrastructure Development will receive Ksh 290 million (US$2.69m) while rehabilitation of Fish Landing Sites in Lake Victoria will get Ksh 326.6 million (US$3.03m).

Aquaculture Technology Development and Innovation Transfers will get Ksh 150. Million (US$1.39m) and Development of Blue Economy Initiatives Ksh 195.3 million (US$1.81m).

“In order to increase agricultural productivity and enhance resilience to climate change risks in targeted smallholder farming and pastoral communities in Kenya, I have set aside Ksh 8.9 billion (US$82m) for the Climate Smart Agricultural Productivity Project and Ksh 1.1 billion (US$10m) to enhance drought resilience and sustainable livelihood.

Ending Drought Emergencies in Kenya will use Ksh 178.0 million (US$1.65m), CS Yatani said and also proposed an allocation of Ksh 529.5 million (US$4.91m) for the Livestock and Crop Insurance Scheme to reduce the vulnerabilities of Kenyan farmers to diseases and natural disasters.

Other proposed allocations in related subsectors of agriculture include Ksh 100 million (US$930,000) for revitalization of cotton industry, cooperative cotton ginneries will be modernized to the tune of Ksh59.2 million (US$548,000) while Ksh50 million (US$463,000) will be expended for the Cotton Development as subsidy and extension support.

The embryo Transfer Project and for construction and refurbishment of the Leather Science Institute will receive Ksh 200 million (US$1.85m) and Ksh65 million (US$602,00) respectively while Ksh 150 million (US$1.39m) will be set aside for establishment of Liquid Nitrogen Plant.

Yatani promised that the government will make more investments towards the revival and enhancement of output of major cash crop such as coffee industry which will receive Ksh 210.4 million (US$1.95m).

This year’s Budget zeroed in on priority programmes under the “Big Four” Agenda which is a critical path to supporting sustainable economic recovery. Apart from Agriculture which is under Food and Nutrition Security Pillar, Ksh 20.5 billion (US$189m) for Manufacturing.

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