Gov't unveils Ksh.1 trillion agricultural investment plan to boost food production

The government has unveiled a Ksh.1 trillion National Agri-Systems Investment Plan (NASIP) 2026-2030, setting out a financing framework aimed at boosting agricultural productivity, creating more than two million jobs, and increasing private sector investment in the sector.

Speaking during the launch at the third Agricultural Financing Summit (FINAS) in Nairobi, Livestock Development Principal Secretary Jonathan Mueke said the new investment plan addresses one of agriculture's biggest challenges—financing.

"The biggest gap has always been financing. We have good policies and strategies, but implementation depends on adequate funding," PS Mueke said.

Under the plan, the national and county governments will provide 45 per cent of the required financing, the private sector 35 per cent, while development partners will contribute the remaining 20 per cent over the next five years.

The investments will target priority value chains under the government's Bottom-Up Economic Transformation Agenda (BETA), including tea, rice, edible oils, macadamia, leather, meat and dairy.

Mueke said the financing strategy is expected to support increased production, value addition, market access and job creation, particularly for youth and women.

He also welcomed President William Ruto's pledge to increase the capital base of the Agricultural Finance Corporation from Ksh.2 billion to Ksh.10 billion, saying the additional funding will improve access to affordable credit for smallholder farmers.

Beyond government financing, Mueke urged commercial banks to expand agricultural lending, noting that partnerships with development financiers, SACCOs and cooperatives remain critical in closing the sector's financing gap.

Managing Director of the Agricultural Finance Corporation George Kubai said the launch of NASIP marks a major step towards sustainable financing for the sector.

"The launch of NASIP is quite significant to us because it shows the government's commitment under the Malabo and Kampala declarations. It is the first step towards ensuring we have sustainable agricultural financing in this country and demonstrates the government's commitment to ensuring agricultural financing is properly resourced," Kubai said.

FINAS Summit Director Charity Mutegi said this year's summit is focused on moving beyond discussions to concrete action.

"We do not want to be labelled a talk show. We want to transition the conversations on food systems finance into action. Whatever recommendations come out of this summit have to be adopted by the different partners," she said.

Among the expected outcomes are the formation of a banking industry working group on agricultural finance, policy recommendations to improve the financing environment, and investment deal rooms linking financiers with bankable agribusiness projects.