As President William Ruto marks his first year in office, his profound impact on the agricultural sector stands as a testament to his commitment to improving the lives of ordinary Kenyans and driving economic growth. Agriculture, a key contributor to Kenya’s economy, has long been in need of revitalization, and President Ruto’s decisive actions have ushered in a new era of productivity and prosperity.

Agriculture is the Backbone of Kenya’s Economy

The agricultural sector in Kenya is undeniably the backbone of the nation’s economy, contributing approximately 33 percent of the Gross Domestic Product (GDP). It employs more than 40 percent of the total population, particularly in rural areas where 70 percent of residents rely on farming for their livelihoods. Despite its central role, agricultural productivity had stagnated in recent years due to various challenges faced by smallholder farmers and agricultural enterprises. Neglect from previous governments had left the sector in dire need of rejuvenation.

Reducing Fertilizer Prices for Enhanced Productivity

One of President Ruto’s most notable achievements in the agricultural sector has been the significant reduction of fertilizer prices. Fertilizer, a critical input for farmers, saw prices drop from a burdensome Kshs. 7,000 to a more affordable Kshs. 2,500. This momentous decision has unburdened farmers, leading to increased agricultural productivity. Lower input costs mean that farmers can allocate more resources to enhance crop cultivation, thus translating into more affordable food prices for consumers, directly benefiting ordinary Kenyans, especially the hustlers who rely on affordable food to make ends meet.

Duty Waivers and affordable credit for Farmers

President Ruto’s administration has also implemented duty waivers on essential food imports, further contributing to stable food prices. This policy demonstrates his commitment to ensuring that the cost of living remains manageable for Kenyan citizens. Additionally, President Ruto allocated Kshs. 10 billion to the Agricultural Finance Corporation, offering affordable credit options to farmers. This crucial financial support enables farmers to access cheap credit, facilitating investment in their agricultural activities.

Reviving and Reforming Key Sectors

The President’s dedication to the agricultural sector extends beyond cost reduction. He has zero-rated taxes on animal feed imports, a move aimed at supporting dairy farming, a critical sub-sector with significant potential for growth. Furthermore, he has revived cotton farming by introducing improved BT cotton hybrids, which not only benefits cotton farmers but also bolsters the textile and apparel industries.

Tea Reforms

Recognizing the crucial role that tea plays in Kenya’s economy, the government has taken significant steps to enhance value addition and processing within the sector. By eliminating Value Added Tax (VAT) on tea and its packaging materials, the administration has cleared the path for improved profitability for tea producers. The recently enacted Tea Act has provided a comprehensive framework to address the challenges that have long plagued the tea industry.

Moreover, a landmark move is the allocation of Kshs 1 billion annually to provide support to nearly one million tea farmers nationwide. This injection of funds is poised to empower farmers, promote sustainable practices, and ensure a thriving tea sector that benefits both growers and consumers.

Coffee Reforms

In a bid to rejuvenate the coffee sector, the government has set ambitious goals, aiming to increase coffee production from 80 tons per year to a remarkable 200 tons within a five-year span. Such a remarkable leap is underpinned by strategic interventions designed to boost production.

Notably, subsidized fertilizers have been made available to coffee farmers, a step that not only reduces costs for growers but also promotes healthier and more productive coffee plants. Another groundbreaking initiative is the decision to process Kenyan coffee within the country before exportation. This move is set to add value to the coffee chain and position Kenyan coffee on the global market as a premium product.

Furthermore, the establishment of the Coffee Cherry Fund holds promise for further advancements in the sector. As anticipation mounts, funds are expected to be released after the upcoming Coffee Auction on August 15th, providing a potential windfall for coffee farmers.

Dairy Sector Reforms

Kenya’s dairy sector is also receiving a significant boost through targeted reforms. With the aim of bolstering milk production, the government has eliminated taxes on animal feeds. This policy shift not only reduces the financial burden on dairy farmers but also incentivizes increased milk production, which is a cornerstone of the agricultural industry.

In a move set to modernize dairy farming, the government has secured an agreement to acquire 600 Milk Coolers from Poland. This development is poised to enhance the storage and preservation of milk, reducing spoilage and waste while ensuring a steady supply of fresh and high-quality dairy products for consumers.

Farmer Data Registration

President Ruto’s government has also achieved a historic milestone by registering 5 million farmers for the very first time in Kenya’s history. This comprehensive database enables the government to effectively distribute subsidized fertilizer, crop products, provide tailored training, and offer credit to farmers. It represents a significant leap toward modernizing and optimizing Kenya’s agricultural sector, benefiting millions of farmers and ultimately contributing to the nation’s food security.

These comprehensive reforms reflect President Ruto’s commitment to revitalizing agriculture, enhancing food security, and driving economic growth in Kenya. The agricultural sector is witnessing a transformative shift, promising a brighter future for all citizens. As President Ruto’s vision for the “Bottom-Up Economy” continues to unfold, the agricultural industry stands as a key pillar in Kenya’s path toward prosperity and inclusivity.