Nairobi: The government has increased agriculture financing by Sh3.8 billion to sustainably finance agrifood systems in the country. Agriculture Principal Secretary Dr. Kipronoh Ronoh has stated that the current fiscal allocation for the agriculture sector, which is Sh77.7 billion, up from Sh73.9 billion for the previous fiscal year, is expected to strengthen the entire agricultural value chain, from production to market access, improve food security, and boost job creation.
According to Kenya News Agency, the Principal Secretary highlighted the need for financing among all agricultural value chain actors, particularly farmers, who require funds to purchase farm inputs such as seeds and fertilizers, pay for leases of additional agricultural land, buy livestock, and meet their harvesting and marketing costs. The increased financing is set to enhance sustainable productivity in agri-food systems, reduce post-harvest losses, and empower smallholder farmers, particularly women and youth.
Ronoh emphasized the government's past year efforts to support farmers by enhancing their capacity to access inputs such as fertilizers, extension, and agricultural mechanization services. He made these remarks at a stakeholder meeting in Nairobi during the media launch of the Financing Agri-food Systems Sustainably (FINAS) Dialogue 2025 Summit, scheduled for May this year. He noted that as African governments commit to self-sufficient financing mechanisms, the FINAS 2025 Dialogue offers a platform to reimagine agri-food financing through innovative models, digital transformation, and strategic partnerships.
The Principal Secretary reiterated the Ministry's prioritization of implementing programs and policies under the government's Bottom-UP Economic Agenda (BETA), aiming to achieve food security, reduce food imports, and increase exports. BETA emphasizes structured engagement with private sector players through initiatives like the FINAS Dialogue. These forums are essential for synchronizing stakeholder efforts and monitoring progress, with a steadfast commitment to collaborating with the private sector in transforming agri-food systems.
Ronoh disclosed that the sustainable financing and funding of agriculture emerged from the FINAS 2024 dialogue, aiming to optimize the consolidation and use of public finances for food system development in Kenya. The upcoming FINAS Summit provides a platform to explore innovative financial solutions and pathways to securing the growth and sustainability of agrifood systems on the continent. He observed the shifting global funding landscape and its impact on the agricultural sector due to policy changes from development partners.
The government is exploring innovative solutions such as blended financing, green bonds, diaspora remittances, leveraging domestic resources, and increased private-sector participation to bridge financial gaps. By embracing these models, the government aims to ensure the longevity and resilience of agrifood systems, necessitating a rethink of existing financing and investment models.
FINAS Summit Director Dr. Charity Mutegi stated that the summit will gather stakeholders from various sectors, including policymakers, financial institutions, agricultural technology providers, and farmers, to discuss challenges and solutions in financing Agri-food systems sustainability. The summit aims to assess Africa's financing policy environment, improve data quality and access for informed decision-making, and strengthen de-risking within agri-food systems.
Mutegi added that the summit will enhance B2B, B2C, and B2G engagements to improve access to financial solutions in food systems and repurpose financing to meet the pressing needs of agri-food systems. The FINAS Summit is timely, given the digital transformation creating unprecedented opportunities to reimagine agricultural financing amidst shifting policy landscapes globally. The focus on food systems transformation and stakeholder collaboration is crucial for developing sustainable solutions for financing Agri-food systems in Africa.
George Abwajo, Board Member at Fintech Association of Kenya (FINTAK), commented that agricultural financing represents a significant opportunity for Fintech innovation in Africa. As a leader in the innovation, data, and technology focus area, FINTAK will advance critical conversations on leveraging digital innovation to transform agricultural financing across Africa. This role acknowledges Kenya's leadership in Fintech innovation and FINTAK's commitment to applying technological solutions to pressing development challenges.
Kenya is set to host the highly anticipated FINAS 2025 Dialogue from May 20-22 at the Kenyatta International Conference Centre (KICC) in Nairobi. The summit, themed 'Taking Ownership: Rethinking Sustainable Financing for Africa's Food Systems,' will serve as a pivotal platform to explore, unlock, and revolutionize sustainable financing solutions to secure Africa's food future.