By Otieno Bildad
The fertiliser subsidy programme has received the largest increase in the 2026/27 budget estimates, with its allocation more than doubling from Sh8 billion in the 2025/26 financial year to Sh18 billion this year.
In addition to the increased funding, the government has already begun distributing 3 million bags of fertiliser ahead of the long rains, targeting a total of 12.3 million bags annually. The price of a 50kg bag remains capped at Sh2,500 to ensure affordability for farmers.
On the other hand, the National Agricultural Value Chain Development Project (NAVCDP) is among the programmes that recorded the sharpest decline in the upcoming budget estimates. Its allocation has been reduced by more than half, from Sh10.2 billion to Sh4.6 billion.
According to submissions by the Departmental Committee on Agriculture and Livestock, “Following the success of the fertiliser subsidy initiative, a seed subsidy programme has also been introduced to complement the intervention.”
The seed subsidy programme has been allocated Sh2 billion. Agriculture remains a key pillar of the economy in Kenya, supporting millions of livelihoods and playing a central role in food security, employment, and export earnings.
The government has recently placed greater emphasis on food security and climate resilience programmes. However, concerns are emerging over declining budgetary allocations relative to other sectors.
The committee indicates that the Sh42.98 billion development allocation for the State Department for Agriculture will primarily support key government programmes aimed at enhancing agricultural productivity and sectoral reforms.
These include the fertiliser subsidy programme (Sh18 billion), sugar reforms support project (Sh2.47 billion), seed cane multiplication and popularisation (Sh300 million), and the seed subsidy programme (Sh2 billion).
Stakeholders, in their submissions to the committee, highlighted the need to strengthen the post-harvest component of agricultural value chains to improve productivity and support sustainable food production across the country.
They also emphasised the importance of supporting youth-owned enterprises operating in digital services, retail trade, and transport services.
