Kenya has increased agriculture financing by Ksh3.8 billion ($29.million) to sustainably finance agriculture and increase production in the country.

Agriculture Principal Secretary Kipronoh Ronoh says the current fiscal allocation of Ksh77.7 billion ($599 million) for the agriculture sector is step up from Ksh73.9 billion (569.8 million) 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.

He said all agricultural value chain actors and more so farmers who are the principal actors in the sector require financing to help them in purchase of farm inputs such as seeds and fertilisers, pay for lease of additional agricultural land, buy livestock and meet harvesting and marketing costs.

Dr Ronoh said increase in financing is set to enhance sustainable productivity in agri-food systems, reduce post-harvest losses and empower smallholder farmers, particularly women and youth.

“Over the past year, the government has supported farmers particularly by enhancing their capacity to access inputs such as fertilizers, extension and agricultural mechanization services” he said.

Ronoh was speaking in Nairobi, where stakeholders in the agri food system had convened in Nairobi for a media launch of the Financing Agri-food Systems Sustainably (FINAS) Dialogue 2025 Summit that will be held in May this year.

“At a time when African governments are increasingly committed to self-sufficient financing mechanisms, FINAS 2025 Dialogue, stands as a vital platform to reimagine agri-food financing through innovative models, digital transformation and strategic partnerships,” said Ronoh,

He said the ministry continues to prioritise implementation of programs and policies to realise the aspirations set under the government’s Bottom-UP Economic Agenda (BETA) aiming to achieve food security, reducing food imports and increasing exports.

He said BETA prioritises structured engagement with private sector players through initiatives such as the Financing Agri-food Systems Sustainably (FINAS) Dialogue.

“These forums provide a platform to synchronise stakeholder efforts and monitor progress. We remain steadfast in our commitment to collaborate with the private sector in transforming agri-food systems,” he said. 

The PS divulged that the sustainable financing and funding of agriculture stemmed from the FINAS 2024 dialogue. The framework aims to optimise on the consolidation and use of public finances to support food systems development in Kenya.

“The upcoming FINAS summit provides a platform and an opportunity to explore innovative financial solutions and pathways to securing the growth and sustainability for agri-food systems on the continent,” he said.

The PS observed that the global funding landscape is shifting and the agricultural sector is one of those sectors that have been significantly affected by the policy shift from our development partners.

He said that the government is exploring innovative solutions such as blended financing, green bonds, diaspora remittances, leveraging domestic resources and increased private-sector participation, to bridge these financial gaps.

“By embracing such models, we believe we can ensure the longevity and resilience of our Agri-food systems” he said adding that this reality compels us to rethink our existing financing and investment models.

FINAS Summit Director Charity Mutegi, said the FINAS Summit will bring together stakeholders from various sectors, including policy-makers, the public and private sectors, financial institutions, agricultural technology providers, and farmers, to discuss challenges and solutions in financing agri-food systems sustainability.

Mutegi said the summit aims to take stock of Africa’s financing policy environment, improve on data quality and access to inform decision-making in agri-food financing and strengthen de- risking within agri-food systems. She further said it will strengthen B2B, B2C and B2G engagements to improve access to finalizing solutions in food systems and repurpose financing to suit the agri-food systems’ pressing needs.

“In view of the changing funding landscape, the FINAS Summit is timely. It comes at a critical moment when digital transformation is creating unprecedented opportunities to reimagine agricultural financing and funding amidst shifting policy landscapes at global stage,” she said.

The director observed that focusing the conversation on the food systems transformation agenda and providing a platform for stakeholders to propose is crucial in coming up with sustainable solutions for financing agri-food systems in Africa,

“The diminishing, unassured external financial support necessitates greater innovation, with leaders leveraging domestic resources to build self-sustaining food systems,” she said.

Board Member at Fintech Association of Kenya (FINTAK) George Abwajo, on his part said Agricultural financing represents one of the most significant opportunities for Fintech innovation in Africa.

“As the co-lead of the Innovation, data and technology focus area, the FINTAK will drive forward critical conversations on leveraging digital innovation to transform agricultural financing across Africa” he said.

He said this pivotal role recognises Kenya’s leadership in Fintech innovation and FINTAK’s commitment to applying technological solutions to pressing development challenges. Kenya is set to it hosts the highly anticipated FINAS  2025 Dialogue from May 20-22 at the Kenyatta International Conference Centre (KICC) in Nairobi aimed to propose means through which food systems financing gaps can be met.  

Under the theme: Taking Ownership: Rethinking Sustainable Financing for Africa’s Food Systems, FINAS 2025 Dialogue Summit will serve as a critical platform to explore, unlock and revolutionize sustainable financing solutions to secure Africa’s food future.

Agriculture principal secretary Kipronoh Ronoh speaking during a media launch of the FINAS 2025 Dialogue Summit at a Nairobi hotel.

• A Tell Media / KNA report / By Anita Omwenga