Sh63.9b to tame food insecurity, climate disaster

Farmers have received a major boost after Treasury Cabinet Secretary Ukur Yatani allocated an additional Sh2.7 billion to the fertiliser subsidy programme. This is in addition to Sh3 billion that was allocated in the 2021/2022 financial year.

The Treasury’s move comes just days after Agriculture Cabinet Secretary Peter Munya announced a fertiliser subsidy programme, bringing the cost of a 50kg bag to an average Sh2,800, down from Sh7,000 in some regions. Mr Yatani, in his budget speech yesterday, allocated Sh63.9 billion to the Agriculture ministry.

Out of this, Sh46.7 billion will go to ensuring food and nutritional security over the next year.

“The government is implementing measures to achieve food and nutritional security. The measures include supporting large-scale production of staple food, expanding irrigation schemes, increasing access to agricultural inputs and supporting smallholder farmers to sustainably produce and market various commodities,” said Mr Yatani.

Another Sh4.2 billion will go to the National Agricultural and Rural Inclusivity Project, the Kenya Cereal Enhancement Programme (Sh1.7 billion), emergency locust response (Sh1.9 billion), the National Value Chain Support Programme (Sh1.5 billion), the Agricultural Sector Development Support Programme (Sh1.1 billion), Small-scale Irrigation and Value Addition Project (Sh1.5 billion) and Food Security and Crop Diversification Project (Sh690 million).

Poultry farmers also got a major boost after the CS proposed to exempt from excise duty imported eggs for hatching by licensed hatcheries upon recommendation by the responsible Cabinet Secretary.

Mr Yatani said last year the Excise Duty Act was amended to introduce excise duty on all imported eggs. This was meant to protect local producers of eggs.

“However, we have noted that the tax has adversely affected the hatching business as there is insufficient local capacity to supply all the required eggs for hatching,” said the CS.

“In order to support farmers who rear cows as well as pastoralist communities who depend on sale of hides and skins, I propose to reduce the export levy on the raw hides and skins from 80 per cent or $0.5 (Sh58) per kilo to 50 per cent or $0.32 (Sh37) per kilo,” he said.

In support of the Blue Economy, Sh1.9 billion will go towards supporting the aquaculture business development project and Sh2.8 billion to Kenya Marine Fisheries and Socioeconomic development projects.

Another Sh1.3 billion will go to the exploitation of revenue resources under the blue economy and Sh1 billion to construction of a fish processing plant in Lamu.

To improve livestock production, the CS has proposed an allocation of Sh500 million for the renovation of the free disease holding ground in Lamu.

“I also proposed Sh1.7 billion for the Kenya Livestock Commercialisation Programme and Sh121 million for livestock production under the Big Four initiative,” said Mr Yatani.

To increase agricultural production and enhance resilience to climate change response in targeted smallholder farming and pastoral communities in Kenya, the CS set aside Sh147 million for the Climate Smart Agricultural Productivity Project.

Another Sh850 million will go to enhancing drought resilience and sustainable livelihood, while Sh178 million will be used for drought emergencies in affected areas.

“And in addition, I have proposed an allocation of Sh421 million for the Livestock and Crop Insurance Scheme to reduce the vulnerabilities of Kenyan farmers to diseases and natural disasters,” said Mr Yatani.