By benadeta mwaura - Reporter
Kenya, January 23 2026 - A leading Kenyan economic think tank has raised the alarm about declining public spending on agriculture, saying it could slow down the sector’s growth and worsen food insecurity if not addressed swiftly. The Institute of Public Finance (IPF), a Nairobi-based policy research organisation, says that while agriculture remains a backbone of Kenya’s economy, recent budget allocations fall short of what’s needed to sustain productivity, build resilience and support rural incomes.
In its latest report, the IPF noted that public spending on agriculture actually declined in the 2024/25 financial year. The national government allocated Sh76.9 billion, down from Sh94.2 billion the year before, marking an 18.3 percent drop in real terms.
This trend, the think tank warns, fails to match government policy commitments aimed at boosting agricultural productivity, scaling up climate-resilience measures, and tackling rising food market uncertainties that affect both farmers and consumers. According to the IPF, abrupt cuts in agricultural funding weaken medium-term planning and undermine the effectiveness of investments in key areas such as:
1. Irrigation systems that help farmers adapt to climate change
2. Extension services that provide training and agronomic support
3. Mechanisation and value-chain upgrades essential for higher productivity
Without reliable and adequate financing, plans to modernise farming and make rural communities more competitive risk being derailed. Despite the funding squeeze, Kenya’s agricultural sector has recorded notable gains in recent years, demonstrating that broader strategies are beginning to yield results.
Tea production rose by about 17 percent, contributing significant export earnings and reinforcing Kenya’s position as a leading global tea supplier. Milk output also increased as pastoral and dairy programmes expanded, supporting rural livelihoods and boosting the dairy value chain.
At the same time, efforts to enhance food security led to a growth in maize acreage, helping stabilize domestic supply and prices. Rice cultivation saw a marked expansion, supported by irrigation infrastructure such as the Thiba Dam, which enabled farmers to grow more reliably and efficiently.
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Meanwhile, input support mechanisms, including subsidised fertilisers and e-vouchers, reached over 1.4 million farmers nationwide, equipping them with essential tools to improve yields and strengthen their livelihoods. While these gains demonstrate the sector’s potential, experts say underinvestment could still undercut long-term growth, particularly as climate risks and global price volatility intensify.
The warning from the IPF echoes broader concerns around agriculture financing in Kenya and Africa at large. Public investment in the sector has not kept pace with its economic weight, and commercial lending to agriculture remains low, often below 5 percent of total bank lending.
This financing gap constrains farmers’ access to credit, limits their ability to adopt modern technologies, and reduces resilience to climatic and market shocks. In addition, previous budget reviews showed that agriculture’s share in national allocations has been squeezed in favour of other sectors like education, illustrating the trade-offs policymakers face in tight fiscal environments.
Agriculture in Kenya is not just an economic statistic, it supports millions of smallholder farmers, drives food production, and underpins rural livelihoods. A slowdown in agricultural growth can translate into higher food prices, reduced incomes for farm families, and greater vulnerability to climate-induced shocks such as droughts, floods, and pest infestations.
Experts insist that without stable and increased financing, Kenya’s agriculture risks losing momentum just as the country seeks to enhance food security and expand into global export markets. A leading think tank has warned that cuts to agricultural funding could stall growth, undercut rural incomes and hamper Kenya’s ability to withstand climate and market pressures, even as the sector shows pockets of strong performance.
Policymakers, farmers and investors are watching closely as Kenya balances fiscal constraints ith the urgent need to support its agricultural engine.
