Kenya: Fund Agriculture Now or Risk Food Crisis - CS Kagwe

Nairobi — Agriculture Cabinet Secretary Mutahi Kagwe has called for urgent, targeted investment in Kenya's agriculture sector, warning that continued underfunding poses a threat to food security and economic stability.

Speaking at the FINAS-2025 Summit in Nairobi, Kagwe framed agri-financing as a "moral imperative", urging banks, policymakers, and private sector players to move beyond dialogue to concrete action.

"This is a pivotal moment," he said. "Financing food systems is not just an investment opportunity -- it is our duty."

Agriculture contributes heavily to Kenya's economy yet receives just 3 percent of the national budget, well below the 10 percent AU target.

Kagwe proposed that 80 percent of agri-budget funds go directly to farmers, with minimal administrative costs.

He decried that only 3 percent of the country's US$49 billion loan portfolio supported agriculture in 2023, calling on banks to craft lending solutions for smallholder realities.

He also pushed for the revival of a policy mandating banks to allocate a portion of assets to agri-lending.

Kagwe proposed creating a government-backed agriculture fund, modeled after the CDF, to be run by the Agricultural Finance Corporation (AFC). AFC currently meets only 25 percent of the sector's financing needs.

The summit brought together government officials, development partners, banks, and farmers, all aligned on the need for reform. Kagwe stressed that private sector engagement is essential for building sustainable food systems.

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