Kenya bets on private capital in new Sh1.08 trillion agriculture plan

Kenya has unveiled a new Sh1.08 trillion agriculture roadmap that places private investors at the centre of efforts to expand food production, create jobs and strengthen the country’s food systems, signalling a major shift in how future agricultural programmes will be financed.

The five-year strategy seeks to attract Sh486 billion from businesses and investors, making the private sector the single largest contributor to the plan. National and county governments are expected to finance 35 percent of the programme, while development and bilateral partners will provide the remaining share.

The National Agri-food Systems Investment Plan 2026-2030 was launched in Nairobi during the opening session of the Financing Agri-Food Systems Sustainably (FINAS) Summit.

The blueprint is expected to guide investments in the sector over the next five years and provide a coordinated approach to agricultural development.

Speaking at the launch, Agriculture Principal Secretary Jonathan Mueke urged county governments to play their part in delivering the ambitious programme.

“I am calling on the commitment of the County Governments, through the Council of Governors, to achieve this goal,” Agriculture Principal Secretary Jonathan Mueke said while launching the plan in Nairobi. “The private sector is expected to contribute 45 percent, and the development and bilateral partners’ share is 20 percent of the total investment envelope.”

Livestock PS Jonathan Mueke during the launch of National Agri-food Systems Investment Plan 2026-2030 in Nairobi during the opening session of the Financing Agri-Food Systems Sustainably (FINAS) Summit on June 29, 2026.PHOTO/X

The financing model represents a break from previous agricultural interventions that depended largely on government allocations and donor-backed initiatives. It also comes at a time when the country is facing increasing pressure on public resources, forcing the government to explore alternative sources of funding for development programmes.

Officials believe the investment plan has the potential to transform the agricultural sector by boosting food production, increasing earnings for farmers and generating more than two million employment opportunities. It is also expected to reduce dependence on scattered projects funded by different development partners.

Agriculture remains one of the most important sectors of the economy, supporting millions of Kenyans through farming, trade, transport and processing activities. The sector directly contributes about one-fifth of the country’s economic output and has an even wider impact through related industries.

Despite its central role, agriculture continues to face long-standing challenges that have slowed growth and limited productivity. Years of inadequate investment in irrigation systems, storage facilities, value addition and access to financing have left many farmers struggling to maximise production.

Other obstacles facing the sector include unpredictable weather conditions, limited access to water for farming, expensive credit, weak market linkages and losses that occur after harvest. The government hopes the new investment framework will help address these challenges while laying the foundation for a more productive and sustainable agricultural sector.