Inside Ruto’s agricultural transformation plan under his bottom-up economic model

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Kenyan President William Ruto announced an ambitious agricultural transformation plan to address the pressing economic challenges faced by millions of Kenyans. Focusing on the agricultural sector which employs over 70 per cent of the country’s workforce, the Bottom-Up Economic Transformation Agenda aims to revitalize the economy, combat unemployment, and alleviate poverty.

For years, the Kenyan population has grappled with unemployment, low incomes, and the soaring cost
of essential commodities. The COVID-19 pandemic further exacerbated the situation, forcing the economy to a standstill and disrupting global supply chains, leading to shortages and rising prices. Additionally, a devastating five-season drought in the Horn of Africa region triggered famine, impacting agricultural production and exacerbating food shortages.

Recognizing that the underperformance of agriculture was the primary cause of Kenya’s economic challenges, President Ruto outlined the need for strategic interventions in the agricultural sector. Neglecting investment in agriculture would hinder the country’s potential for steady growth and further contribute to unemployment, poverty, and inequality.

To ignite the national economy and steer it toward inclusive growth, the President proposed a shift from subsidizing consumption to subsidizing production. The strategic objective of this intervention was to empower all Kenyan farmers to transform their production from meager subsistence to surplus production, achieving food security and sustainable incomes.

One of the key aspects of this transformative agenda was the provision of high-quality inputs, particularly fertilizer, to enhance agricultural productivity. Due to limited arable land and an increasing population, maximizing crop yields through better inputs is critical. The government’s plan is to deliver 300,000 metric tonnes or 6,000,000 bags of subsidized fertilizer at a reduced cost, effectively cutting the price from Ksh7,000 to KSh3,500 per bag.

The introduction of a transparent e-voucher system, developed in partnership with Safaricom, aimed to
manage the distribution of subsidized fertilizer efficiently, eliminating brokers and middlemen to concentrate maximum benefits on the farmers. Through this digital farmer registration exercise, over five million farmers were registered, and over 3.6 million e-vouchers were issued, ensuring direct delivery of
fertilizer based on land acreage and crop production capacity.

The impact of these strategic interventions was significant. In 2017, Kenya produced 39.6 million bags of maize, while in 2018, production rose to 44.6 million bags. However, due to challenges, production dropped to 39.7 million bags in 2019. Thanks to the fertilizers subsidy program, production increased to 40.2 million bags in 2021 and a projected 43 million bags last year.

To further increase agricultural productivity, President Ruto announced the commencement of the second phase of the agricultural transformation plan. The cost of fertilizer per 50kg bag would be reduced from Ksh3,500 to Ksh2,500, with the aim of encouraging higher uptake of fertilizers for increased production in the coming planting seasons.

The government emphasized the importance of doubling the use of fertilizer per acre to achieve higher yields. Data showed that doubling the fertilizer usage per acre could result in an additional yield of between 12 and 25 bags of maize. With the distribution of fertilizers throughout the country and the establishment of over 50 distribution centers at the grassroots level, the government aimed to further support farmers in their efforts.

In a bid to mitigate post-harvest losses, which typically claimed up to 30 per cent of produce harvested, the government also announced plans to acquire 100 driers, strategically distributed across various National Cereals and Produce Board (NCPB) depots nationwide, offering subsidized and affordable rates to maize farmers.

In line with the Warehouse Receipt System Act of 2019, the government was working on establishing a structured and well-regulated trading system for agricultural commodities. This system would create opportunities for the private sector and NCPB to provide a trading platform connecting buyers and sellers and facilitating access to credit for agricultural producers, reducing post-harvest losses and
shielding farmers against low farm-gate prices.

Moreover, the government allocated increased budgetary support to the Agriculture Finance
Corporation (AFC), raising it from Ksh2 billion to Ksh10 billion to provide affordable credit at single- digit rates, thereby further reducing production costs and enhancing productivity.

Through partnerships with the private sector and county governments, a comprehensive mechanization program was also in the works to increase the availability of tractors and farming machinery, fostering greater efficiency and productivity among farmers.

President Ruto praised the collaborative efforts of the government, farmers, and county governments in driving the agricultural transformation agenda. He expressed gratitude for the farmers’ dedication and patriotism, which led to the expansion of agricultural production by an additional 200,000 acres compared to the previous year. The ultimate target was to double agricultural productivity in Kenya by 2027, and with the strategic interventions in place, the country appeared on course to meet its national
demand for food in full.

This transformative journey implemented efficiently, it will usher in an era of agricultural prosperity and national agricultural competitiveness, empowering millions of Kenyan farmers to shape a brighter and more secure future for themselves and their nation.