Bulk of Sh38bn to finance production

Treasury cabinet secretary Henry Rotich (holding briefcase) is flanked by his permanent secretary Joseph Kinywa(left), Devolution and planning cabinet secretary Anne Waiguru (second right)and her permanent secretary Dr Edward Sambili at the treasury building on 13th June 2013, before he read the budget for financial year 2013-2014.

The government has allocated Sh38.07 billion to the Agriculture, Livestock and Fisheries ministry, with the bulk of the funds, for the first time, being earmarked for development projects.

The 2013/14 budgetary estimates released Thursday indicate that Sh29 billion or three-quarters of the total allocation will cover capital expenditure as recurrent expenses take Sh9.8 billion.

The increased development budget comes as President Kenyatta’s government seeks to raise production and make food affordable to the majority of Kenyans.

Lumped together

The amount allocated to Agriculture is only 3.8 per cent of the Sh1.01 trillion budget — a far cry from the 10 per cent the government has been targeting in the last 10 years.

In total, the sector generates 25 per cent of the Gross Domestic Product and provides about 80 per cent employment in rural areas.

In its plan, the government plans to boost production in the sector and turn it into a business venture.

The Treasury says the money will be used to boost fish farming, create irrigation schemes, build strategic food reserves and step up research.

Finance Cabinet Secretary Henry Rotich allocated Sh8 billion for irrigation projects when he read budget Thursday.

Sh2 billion will go to agri-business, with the aim of growing the fund to Sh20 billion in the fourth year.

Sh3.6 billion will go into the first phase of 1 million acre irrigation project in Galana. The project is expected to produce 3 million jobs and increase food production.

Mr Rotich said most Kenyans were food insecure, while food items consumed 70 per cent of household budgets.

“When food prices rise, it creates agitation for higher wages, which in turn weakens our competitiveness,” he said.

The government is set to introduce a Livestock Restocking Development Fund to cushion livestock farmers from losses caused by the vagaries of weather.

To boost production, it plans to vaccinate 61 million livestock and expand extension services in pastoral areas. The animals will be vaccinated against foot and mouth and trypanosomiasis diseases.

The government aims to boost extension services to educate more than 5.1 million pastoralists through field days, shows, farm visits and exhibitions in the coming year.

It plans to rehabilitate 7,500 denuded range lands, where most of the country’s meat comes from.

It will also strengthen disease surveillance and introduce an advanced reporting system using Digital Pen Technology.