Agriculture is the backbone of Kenya's economy, contributing significantly to its Gross Domestic Product (GDP) and employing a large portion of the population, especially in rural areas. Recognizing its vital role, the Kenyan government, alongside various local and international partners, is engaged in ongoing projects to enhance productivity and resilience within the sector, particularly in the face of climate change challenges.

Current State of Agriculture and Challenges-

While agriculture remains a key driver, its growth performance declined to 4.4% in 2024, down from 7.1% in 2023. This was partly due to erratic short rains in 2024, affecting staple crops like maize. The sector faces numerous challenges:

• Climate Change: Kenya is highly vulnerable to climate change, experiencing more frequent and intense extreme weather events such as prolonged droughts and devastating floods. These events lead to crop losses, livestock deaths, and increased food insecurity. A report by the Kenya Meteorological Department (KMD) in March 2025 indicated that over 2.15 million people faced food insecurity by February 2025, largely due to climate impacts.

• High Input Costs: Farmers struggle with the high cost of essential inputs like fertilizers, certified seeds, and pesticides, which directly impacts productivity and profitability.

• Post-Harvest Losses: Significant post-harvest losses, estimated at up to 40% of harvested crops, contribute to food insecurity and economic losses for farmers.

• Limited Access to Financing and Markets: Smallholder farmers often lack access to affordable financing, modern farming techniques, and efficient market linkages, limiting their ability to scale up and achieve better returns.

• Land Degradation: Nearly 80% of Kenya's landmass is affected by degradation, reducing arable land and exacerbating the impacts of climate change.

• Policy and Regulatory Environment: Despite government support, some proposed tax measures, like the reintroduction of VAT on agricultural inputs in the Finance Bill 2025, threaten to increase production costs for farmers.

Ongoing Projects and Initiatives to Enhance Productivity-

The government and its partners are implementing various programs to boost agricultural productivity:

1. Fertilizer Subsidy Programme: This flagship program continues to be central to reducing production costs for farmers. By June 2025, the cost of a 50kg bag of fertilizer had reportedly decreased by 67% from KSh 7,500 in 2022 to KSh 2,500. This has been credited with a 38.9% increase in maize production, from 61.7 million bags in 2022 to 85.7 million bags in 2024. The program has reached over 6.5 million registered farmers and utilizes digital tools like KIAMIS and the E-voucher system for improved transparency and access. The budget for this program is KSh 8 billion for FY 2025/26.

2. National Agricultural Value Chain Development Project (NAVCDP): Allocated KSh 10.2 billion in the 2025/26 budget, this project focuses on strengthening entire agricultural value chains, from production to market access, to improve food security and boost job creation.

3. Small Scale Irrigation and Value Addition Project (SIVAP): Receiving KSh 800 million, this project aims to boost agricultural resilience and processing capabilities, particularly for smallholder farmers.

4. Food Security and Crop Diversification Project: Allocated KSh 1.2 billion, this initiative promotes the cultivation of diverse, nutrition-rich crops beyond traditional staples like maize and beans.

5. Blue Economy Projects: With a significant allocation of KSh 8.2 billion (including KSh 2.3 billion for the Aquaculture Business Development Project and KSh 2.4 billion for the Kenya Marine Fisheries & Socio-Economic Development Project), these initiatives aim to maximize the potential of fisheries and aquaculture.

6. Livestock Sector Support: Programs like the De-Risking, Inclusion and Value Enhancement of Pastoral Economies (DRIVE) project (KSh 2.3 billion) and the Kenya Livestock Commercialization Programme (KeLCoP) (KSh 1.6 billion) aim to enhance livestock production, resilience against climate shocks, and market access for pastoralist communities. Insurance coverage for livestock has expanded significantly under the DRIVE Project, benefiting over 1.6 million pastoralists.

7. Cash Crop Revitalization: Specific allocations are made for key export crops, including:

   • Coffee Cherry Revolving Fund (KSh 2.0 billion) and Coffee Debt Waivers (KSh 2.0 billion).

   • Sugar Sector Reforms (KSh 1.5 billion), which have seen a significant increase in sugar production and farmers receiving bonuses.

   • Modernization of Cotton Ginneries and Horticultural Produce Compliance Enhancement Project.

Initiatives to Enhance Resilience-

Building resilience, particularly against climate change impacts, is a key focus:

1. Climate-Resilient Agriculture and Pastoralism Projects: County governments are partnering with international agencies like GIZ to launch initiatives focused on optimizing harvested groundwater, developing resilient crop varieties, and promoting commercial fodder production in arid and semi-arid lands (ASALs). Turkana County, for instance, is set to launch a new project from 2025-2028.

2. Agroforestry Promotion: Agroforestry, which integrates trees and shrubs with crops and/or livestock, is being promoted for its multiple benefits, including climate resilience, carbon sequestration, improved soil fertility, water retention, and economic diversification. Organizations like Farmonaut are highlighting the 7 powerful benefits of agroforestry for Kenya in 2025.

3. Soil Health and Agroecology: The International Fund for Agricultural Development (IFAD), funded by the European Union, is implementing the "Investing in Livelihood Resilience and Soil Health in ACP Countries (ILSA)" programme in Kenya. This project, launched in May 2025, aims to strengthen agricultural systems by promoting agroecological approaches to restore soil health and enhance the productivity and resilience of small-scale farmers.

4. Integrated Natural Resources Management Programme (INReMP): A new eight-year, $126.8 million co-financing initiative between Kenya and IFAD, INReMP aims to build resilience against climate change impacts and improve livelihoods for over two million vulnerable rural Kenyans. Its core mission is to enhance food security, nutrition, and income by promoting sustainable ecosystem practices, including sustainable forest management, rangeland rehabilitation, arable land management (e.g., terracing, organic fertilizers), and water harvesting/storage.

5. Weather and Climate Information Services (WISER): Initiatives like SODFI (Sustainable Organic Farming and Development Initiatives) in Western Kenya are equipping farmers with climate resilience tools through systems like WISER, which offer localized, real-time weather forecasts to enable informed planting and harvesting decisions.

6. Targeted Drought Emergency Projects: The "Towards Ending Drought Emergencies (TEDE) project" (KSh 318 million) and the "Resilience for Food & Nutrition Security Program in Horn of Africa" (KSh 1.3 billion) are specifically designed to build resilience in drought-prone regions.

Data and Research Initiatives-

• Kenya Census of Agriculture (KCA) 2024/25: The Kenya National Bureau of Statistics (KNBS) is conducting a comprehensive Census of Agriculture to collect accurate data and generate estimates for key agricultural indicators. This initiative aims to address declining data quality, monitor policy impacts, and inform evidence-based decision-making for agricultural development.

Despite significant investment and ongoing projects, the agricultural sector remains vulnerable to climate shocks and the broader economic challenges facing Kenya. The effectiveness of these initiatives will depend on consistent implementation, efficient resource allocation, and a supportive policy environment that genuinely empowers farmers and builds long-term resilience.