Government Launches Sh1.08 Trillion Agri-Food Investment Plan

Nairobi: The government has launched the National Agri-food Systems Investment Plan (NASIP) 2026-2030. The ambitious Sh1.081 trillion blueprint aims to transform agriculture, strengthen food security, create over two million jobs, and unlock private investment within Kenya’s agri-food sector.

According to Kenya News Agency, Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe announced the plan during the opening of the 2026 Financing Agrifood Systems Sustainably (FINAS) Summit at the Kenyatta International Convention Centre (KICC) in Nairobi. Kagwe emphasized that the plan marks a shift toward viewing agriculture as a competitive and investable sector.

In a speech delivered by Livestock Principal Secretary Jonathan Mueke, Kagwe highlighted that NASIP provides a comprehensive investment framework encompassing crops, livestock, fisheries, irrigation, agro-industrialization, digital agriculture, climate resilience, research, innovation, and agricultural finance. The National Government and county governments will finance 35 per cent of the plan, with the private sector expected to contribute 45 per cent, and development partners providing the remaining 20 per cent.

Kagwe stated that NASIP is not solely about financing agriculture but also about building resilient food systems, modernizing agricultural value chains, creating jobs, increasing farmer incomes, and positioning Kenya as a regional hub for sustainable agri-food investment. The investment plan builds on the recently launched AgriConnect Compact, outlining Kenya’s commitments under the Comprehensive Africa Agriculture Development Programme (CAADP) Kampala Declaration.

He noted that despite Africa holding nearly 60 per cent of the world’s remaining uncultivated arable land, the continent continues to import food due to insufficient investment in agriculture. The challenges posed by climate change, volatile global markets, rising food demand, and limited access to affordable financing underscore the need for a new financing model capable of supporting sustainable agricultural transformation.

Kagwe also remarked that smallholder farmers, pastoralists, and agri-based micro, small, and medium enterprises, particularly those owned by women and youth, face difficulties accessing long-term capital due to production risks and tightening global financial conditions. He called for collaboration between governments, commercial banks, development finance institutions, and private investors to mobilize the resources needed to transform Africa’s food systems.

Japan International Cooperation Agency (JICA) representative Takamori Satoyama revealed that the agency supported the Government in developing NASIP through extensive consultations with county governments, farmers, pastoralists, fisherfolk, women, youth, and the private sector. The plan incorporates lessons from the Agricultural Sector Transformation and Growth Strategy (ASTGS) while addressing emerging challenges, such as climate change, the COVID-19 pandemic, and global conflicts that have disrupted food systems.

Meanwhile, Germany announced additional funding of pound 31.2 million to support Kenya’s agricultural transformation following bilateral talks in Berlin. Maren Knelleer, Head of Development Cooperation at the German Embassy, stated that Germany has invested over pound 215 million in Kenya’s agri-food sector, benefiting approximately 1.1 million farmers through programmes improving productivity, creating jobs, expanding irrigation, and supporting agricultural reforms.

Ireland’s Ambassador to Kenya, Caitriona Ingoldsby, hailed the launch of NASIP as a significant milestone in building resilient and sustainable food systems. She reaffirmed Ireland’s commitment to supporting Kenya’s agricultural transformation, emphasizing that investments must align with national priorities, be informed by evidence, and be implemented through strong partnerships.

Finance Summit and Dialogue Director Charity Mutegi urged African countries to reconsider how agriculture is financed, noting that funding models have remained largely unchanged since independence despite limited progress. The FINAS Summit will focus on policy reforms, inclusive financing, de-risking investments, and using data to improve agricultural financing, with the private sector expected to establish a working group on agricultural finance to enhance collaboration with the government and unlock financing for viable agribusiness ventures.