Kagwe Defends His Ministry Against Budget Cuts, Says It Is Backbone Of Country’s Economy

By MKT Correspondents

 Worth Noting:

• According to the CS, the proposed allocation to his Ministry is KSh21.3 billion for recurrent expenditure and KSh38.2 billion for the development expenditure.
• “The recruitment for recurrent expenditure for State department of agriculture is KSh27.488 billion against the allocated KSh21.3 billion. In the same department, we also require KSh50.737 billion for Development expenditure but we have been allocated KSh31.690 billion. Meanwhile, for the state department of livestock its required recurrent expenditure is KSh6.784 billion against the allocated KSh4.623 billion and Kshs 22.754 billion for development expenditure against the allocated Ksh6.515 billion,” Kagwe told the members.
• In his presentation PS Rono told the committee that among the key programs that are going to be affected by budget cuts is the fertilizer subsidy program.

Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe has maintained that budget   allocation for his ministry should not be reduce as the country majorly relies on it for economic prosperity.

The CS made the observation last Friday when he met the members of the National Assembly Committee on Agriculture and Livestock.

The committee which is chaired by Tigania West Member of Parliament Dr John Mutunga met the CS and his team to discuss the 2025 Budget Policy Statement.

Kagwe alongside his two Principal Secretaries, Dr. Paul Rono of State Department of Agriculture and Jonathan Mueke of State Department of Livestock Development, told the Committee that Agriculture plays a very crucial role in Kenya’s economy and social development and thus commensurate resources should be devoted to it.

According to the CS, the proposed allocation to his Ministry is KSh21.3 billion for recurrent expenditure and KSh38.2 billion for the development expenditure.

“The recruitment for recurrent expenditure for State department of agriculture is KSh27.488 billion against the allocated KSh21.3 billion. In the same department, we also require KSh50.737 billion for Development expenditure but we have been allocated KSh31.690 billion. Meanwhile, for the state department of livestock its required recurrent expenditure is KSh6.784 billion against the allocated KSh4.623 billion and Kshs 22.754 billion for development expenditure against the allocated Ksh6.515 billion,” Kagwe told the members.

In his presentation PS Rono told the committee that among the key programs that are going to be affected by budget cuts is the fertilizer subsidy program.

Reacting to the PS’s presentation, the chairperson tasked him to explain the implementation of the FY 2023/24 budget and give the Committee an explanation on why they need more allocation yet they couldn’t spend what they were allocated during the last FY.

“When the ministry is not able to transfer money to state corporation to a tune of Kshs 2 billion for recurrent expenditure what happens to these corporations? Do they stay without functioning? And more than Ksh3 billion not utilized for development and yet agriculture is underfunded what explanation would you give treasury to give you more funding if you can’t spend and the cause for it is not treasury,” Mutunga asked.

On this, the PS stated that they are above 80 per cent in implementation of their targets, adding that they really struggled to achieve this despite the issues they’ve had with the exchequer.

The members also questioned PS Rono on agriculture policies demanding efficient resource distribution.

Soy constituency MP David Kiplagat questioned the PS on why the Agricultural Finance Authority (AFA) is still not operational despite having a full board and a substantive CEO.

In response, the PS stated that mechanisms are being put in place to ensure the agency starts functioning effectively.

At the same time, Kwanza MP Ferdinand Wanyonyi also raised concerns about the distribution criteria for maize driers, urging the PS to reconsider the allocation, emphasizing that driers should be sent to high maize-producing regions.

The MPs criticized the timing of distribution, stating that the driers arrive at the end of the season when they are less effective.

Additionally, MPs questioned the proposed merger of the Agricultural Finance Corporation (AFC) and the Commodities Fund, which provides loans to farmers.

They expressed concerns about the institutions being placed under the National Treasury, arguing that the parastatal plays a crucial role in implementing agricultural policies and supporting farmers.

On his part, PS Mueke told the committee that several projects were going to be stalled projects due to non-allocation citing the leather sector which he termed as a key strategic opportunity for investment.