In a notable shift toward agricultural reform, the government has significantly increased funding for small-scale farmers as part of its 2025/26 budget plans. The National Treasury announced a Sh10.2 billion allocation to the National Agricultural Value Chain Development Project (NAVCDP), marking a Sh4.1 billion increase from the previous year. This makes NAVCDP the biggest budget winner within the agriculture sector for the financial year.
Launched in 2023, NAVCDP is designed to support the transition of smallholder farmers from subsistence to commercial agriculture. The initiative focuses on enhancing value addition, improving productivity, and integrating farmers into national and global value chains. Despite this substantial investment, the overall agriculture sector budget has been reduced by 3 per cent from Sh54.6 billion in the previous financial year to Sh47.6 billion.
The government says it remains committed to revitalising agriculture, with emphasis on increasing productivity across key value chains. These include fisheries and aquaculture, horticulture, food crops, and livestock development. Authorities aim to scale up farmer support through targeted input financing, subsidised inputs, and expanded agricultural extension services.
This strategy is expected to help the country transition from food deficit to food surplus, decrease dependence on food imports, and revive export-oriented crop production.
Among other critical allocations in the sector is the fertiliser subsidy programme, which has been granted Sh8.0 billion to make inputs more affordable for farmers. Additionally, Sh800 million has been earmarked for the Small-Scale Irrigation and Value Addition Project, while Sh1.2 billion goes to the Food Security and Crop Diversification Project.
To address climate vulnerabilities and bolster adaptive capacity among farming communities, the Food Systems Resilience Project has been allocated Sh5.8 billion. Meanwhile, livestock production and pastoralist livelihoods will benefit from multiple initiatives. The De-Risking, Inclusion and Value Enhancement of Pastoral Economies Programme receives Sh2.3 billion, while Sh1.6 billion has been directed to the Kenya Livestock Commercialisation Programme (KeLCoP). An additional Sh280 million is intended for the Livestock Value Chain Support Project.
In a move aimed at boosting industrial processing, Sh340 million has been allocated for the development of the Leather Industrial Park at Kenanie in Machakos County, supporting value addition and job creation in the livestock sector.
The Blue Economy and fisheries subsector has also received considerable attention, with a total allocation of Sh8.2 billion. This funding targets the development of coastal and inland fisheries, enhancing food security and economic growth in regions with aquatic resources.
To further strengthen rural resilience, Sh318 million has been assigned to the Ending Drought Emergencies project. An additional Sh1.3 billion has been allocated to the Resilience for Food and Nutrition Security Program, both of which aim to enhance food system resilience and improve nutrition outcomes in vulnerable communities.
Finally, the government has reserved Sh3.8 billion for the Settlement of the Landless initiative. This programme is part of broader land reform efforts meant to address historical injustices, ensure equitable land access, and promote sustainable land use practices.
Overall, the 2025/26 budget reflects a deliberate pivot toward empowering small-scale farmers, enhancing food production, and building resilience in the face of economic and climatic pressures. While the total sector allocation has declined, the targeted investments signal a shift toward high-impact programmes that are expected to drive long-term agricultural transformation.
