REPUBLIC OF KENYA

MEDIUM TERM EXPENDITURE FRAMEWORK

2010/11 – 2012/13

REPORT FOR THE AGRICULTURE

AND RURAL DEVELOPMENT
SECTOR

JANUARY 2010
TABLE OF CONTENTS
TABLE OF CONTENTS ................................................................................................... i
EXECUTIVE SUMMARY...............................................................................................iii
CHAPTER ONE: INTRODUCTION ........................................................................... 1
1.0 Background ................................................................................................................... 2
1.1 Sector Vision and Mission ........................................................................................... 3
1.2 Strategic goals/objectives of the Sector..................................................................... 3
1.3 Sub Sectors and their Mandates ................................................................................. 4
1.3.1 Agriculture.................................................................................................. 4
1.3.2 Cooperative Development and Marketing ............................................ 4
1.3.3 Fisheries Development.............................................................................. 5
1.3.4 Lands............................................................................................................ 5
1.3.5 Livestock Development............................................................................. 5
1.4 Autonomous and Semi-Autonomous Government Agencies ............................... 6
1.4.1 Agriculture.................................................................................................. 6
1.4.2 Cooperative Development & Marketing ................................................ 6
1.4.3 Lands............................................................................................................ 6
1.4.4 Livestock Development............................................................................. 7
1.5 Role of stakeholders ..................................................................................................... 7
CHAPTER TWO: PERFORMANCE AND ACHIEVEMENTS OF THE SECTOR
DURING THE PERIOD 2006/07-2008/09 ................................................................... 8
2.1 Performance of Programmes and Key Indicators of Sector and Sub-Sector
Performance .............................................................................................................................. 9
2.1.1 Agriculture.................................................................................................. 9
2.1.2 Cooperatives Development & Marketing ............................................ 10
1.1.3 Fisheries Development............................................................................ 10
1.1.4 Lands.......................................................................................................... 11
2.1.5 Livestock.................................................................................................... 12
2.2 Expenditure Analysis................................................................................................. 14
2.2.1 Analysis of Recurrent Expenditure ....................................................... 14
2.2.2 Analysis of Development Expenditure................................................. 15
2.2.3 Analysis of Externally Funded Programmes ....................................... 15
2.3 Review of Pending Bills............................................................................................. 16
CHAPTER THREE: MEDIUM TERM PRIORITIES AND FINANCIAL PLAN
FOR THE MTEF PERIOD 2010/11-2012/13 .............................................................. 17
3.1 Prioritization of Programmes and Sub-Programmes ............................................ 18
3.1.1 Programmes and their objectives .......................................................... 18
Programme 1: Policy, Strategy and Management of Agriculture................... 18
Programme 2: Crop Development and Management ...................................... 18
Programme 3: Agribusiness and Information Management ........................... 18
3.1.2 Programmes, Sub-Programmes, Expected Outcomes, Outputs and
Key Performance Indicators for the Sector......................................................... 19
3.1.3 Sector Programmes .................................................................................. 28
3.2 Analysis of Resource Requirements ........................................................................ 28
3.2.1 Sector Resource Requirements............................................................... 28
3.2.2 Sub-Sector Resource Requirements....................................................... 28

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 3.2.3 Requirements by Programmes and Sub-Programmes ....................... 29
3.2.4 Requirements by Economic classification ............................................ 32
3.3 Analysis of Resource Requirement versus allocation by: ..................................... 34
3.3.1 Recurrent ................................................................................................... 34
3.3.2 Development ............................................................................................ 35
3.3.3 Semi Autonomous Government Agencies ........................................... 35
3.3.4 Programmes and Sub-Programmes ...................................................... 37
3.3.5 Economic classification ........................................................................... 40
CHAPTER FOUR: CROSS-SECTOR LINKAGES.................................................... 43
4.0 Introduction................................................................................................................. 44
4.1 Intra-sector linkages ................................................................................................... 44
4.2 Inter-sectoral linkages................................................................................................ 44
CHAPTER FIVE EMERGING ISSUES AND CHALLENGES ................................ 46
CHAPTER SIX CONCLUSION................................................................................... 50
CHAPTER SEVEN RECOMMENDATIONS ............................................................ 52
REFERENCES ................................................................................................................. 54

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EXECUTIVE SUMMARY
The Agriculture and Rural Development Sector comprises of five sub sectors
namely; Agriculture, Cooperatives Development and Marketing, Fisheries
Development, Lands, and Livestock Development. The Sector aims to promote
an innovative, commercially oriented and modern agricultural sector as
envisioned in the Vision 2030, under the Economic and Social Pillar. Under this,
the overall agricultural sector goal is to achieve an average growth rate of 7 per
cent per year over the next 5 years. In this regard, the Vision 2030 identifies;
transforming key institutions in agriculture and livestock to promote agricultural
growth, increasing productivity of crops and livestock and fisheries and better
land use policies as the priority areas for the Sector. Kenya being an agro-based
economy, the agricultural sector plays an important role in ensuring food
security, employment creation, poverty reduction, and linkages with other
sectors.

The Sector works with various stakeholders from public sector institutions,
private sector, research institutions, Non-Governmental Organizations (NGOs),
development partners, Community-Based Organizations (CBOs), professional
associations, and cooperative societies. These stakeholders are involved in
formulation of Sector policies as well as identification, implementation,
monitoring and evaluation of projects and programmes within the Sector. The
stakeholders collectively bring together farmers, pastoralists and to pool their
resources and efforts in order to maximize their returns. Stakeholders’
organizations also assist in facilitating access to inputs, credit, markets, market
information, extension services, production, animal health services, education,
information and advocacy for their members. The Sectors’ Public Private
Partnership facilitates joint effort between the government and the private sector
in sector policy formulation and implementation. Further, the private sector and
the development partners have continued to supplement government efforts in
resource mobilization.

During the last financial year, the sector strived to achieve optimal performance
with the limited resource allocation. The sector ministries managed to achieve
good performance towards the sector set objectives and registered significant
achievements in regard to the targets set. The major achievements in the last
financial year include reforms in the agricultural sector particularly land reforms;
review and development of agriculture sector polices; revitalization of the
cooperative movement through review of the Cooperative Societies Act;
increased production and productivity; better animal health through reduced
incidences of diseases; improved and sustainable land use planning and
management; improved coordination of the management and development of
the fisheries resources and; value addition. This performance was boosted by the
various stakeholders within and outside the sector in the spirit of Public Private
Partnership and collaboration.

iii
Total resource allocation by government to the sector increased during the
review period by 22.4% from Kshs. 17,963.5 million in 2006/07 to Kshs. 21,978.3
million in 2008/09. However, the allocation to the sector as a proportion of total
government budget fluctuated during the period under review standing at 3.11%
in 2006/07 to 3.43% in 2007/08 and down to 2.89% in 2008/09 respectively. The
absorption capacity for the sector continued to average over 90% over the review
period. This ranged from 91.4% to 98% reached in 2008/09.

There was tremendous increase in externally funded programmes to the sector

over the period rising by 169.2% from Kshs. 1,924 million in 2006/07 to Kshs.
5,719 million in 2008/09. Absorption capacity was generally low ranging from
47% in 2006/07 to 60.6% in 2008/09 although there were marked improvements
in utilization in 2007/08 at 86.8%. However, the role of development partners to
the sector was considerable with their resources forming a significant of the
sector’s development budget. This share stood at 30.7% in 2006/07 and rose
significantly to 60% in 2008/09. The sector’s total portfolio of pending bills as at
2008/09 stood at Kshs. 523.62 million with recurrent budget pending bills at
Kshs. 269.9 million and development budget pending bills at Kshs. 253.72.

The Sector however faced some challenges in the process of implementation of

its programmes and projects. One major limitation was on resource constraints.
Although resource allocation to the sector has increased over the years, it is still
below the required level as per the Maputo declaration. Despite efforts to
modernize agriculture sector, production and productivity has remained low
due various socio economic and environmental factors. The main issues are on
availability of arable land; technology development and adoption; climate
change; crop and livestock diversification; emerging pests and diseases; and lack
of effective marketing system among others.

The Sectors’ resource requirements for the next MTEF period is Kshs 52.9 Billion
in 2010/11, Kshs 56.5 billion in 2011/12 and Kshs 59.6 billion in 2012/13
respectively. The sector ministries focus will be on improving the legal and
policy framework for sector development, enhancing production and
productivity, control of diseases and pests; facilitating access to markets,
affordable and quality inputs as well as ensuring sustainable use of the natural
resource base. The total recurrent requirement in the 2010/11 financial year is
Kshs. 24,181Million against an allocation of Kshs. 12,826 which translates to a
shortfall of Kshs. 11,355Million. The total requirement for development in the
2010/11 financial year is Kshs. 28,677 Million against GoK allocation of Kshs.
4,179 Million which amounts to a shortfall of Kshs. 24,498 Million.

The performance of the Agricultural Sector is dependent upon the linkages

between the various sub-sectors and strong linkages with other sectors.
Agricultural Sector Development Strategy (ASDS) provides the framework for
intra and inter sector linkages for attainment of the sector goals as identified in

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the Vision 2030 and its first Medium Term Plan. The Agricultural Sector
Coordination Unit (ASCU) co-ordinates the implementation of the strategy

The emerging issues and challenges for the sector are Inadequate legal and
policy frameworks; Low application of modern technology; Agricultural land
fragmentation; Inadequate quality control systems; Inadequate market and
marketing infrastructure; Diseases and Pests; Low access to financial services and
affordable credit; Climate change and Environmental Degradation; Poor
infrastructure; High cost, adulteration and low application of key inputs; Poor
governance in agricultural institutions; Inadequate Staffing levels; Inadequate
financial resources /Disbursement of funds; Transport policy: Increasing
incidence of HIV/AIDS, malaria and waterborne diseases; Inadequate
monitoring and evaluation; and Gender Inequality.

The preparation of this report was informed by the inputs from the affiliated
sector ministries through their individual Ministerial Public Expenditure
Reviews. The sector ministries have based their resource requirements for the
next MTEF period on the first MTP (2008 – 2012) of Vision 2030; strategic plans;
and the Agriculture Sector development Strategy (ASDS) among other policy
documents.

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CHAPTER ONE:

INTRODUCTION

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1.0 Background

The agricultural sector is a key contributory factor to the economic growth as

reflected by its share in GDP, job creation, food security, and industrial
development. It directly contributes 26.0% of the Gross Domestic Product (GDP)
and a further 27% through linkages with manufacturing, distribution and other
service related sectors. It is estimated that 45% of Government revenue is
derived from agriculture, while the sub-sector contributes over 75% of industrial
raw materials and 60.0% of the export earnings. The sector is also the largest
employer in the economy, accounting for 60 per cent of the total employment.
Further, about 80% of the population living in rural areas derive their livelihoods
mainly from agricultural activities.

The Agriculture and Rural Development sector comprises five ministries / sub
sectors namely Agriculture, Cooperative Development and Marketing, Fisheries
Development, Lands, and Livestock Development. Based on their visions,
missions and core mandates, the sector ministries have managed to achieve good
performance towards the sector set objectives. This performance was also
boosted by the various stakeholders within and outside the sector in the spirit of
Public Private Partnership and collaboration.

Kenya being an agro-based economy, the agricultural sector plays an important

role in ensuring food security, employment creation, poverty reduction, and
linkages with other sectors. In this regard the sector is expected to play a
significant role towards achievement of the targets in the Vision 2030, under the
Economic and Social Pillars where the country aims to promote an innovative,
commercially oriented and modern agricultural sector. The overall agricultural
sector goal, as envisaged in the Vision 2030, is to achieve an average growth rate
of 7 per cent per year over the next 5 years. To achieve this growth rate and
increase productivity of crops, livestock and fisheries the Vision 2030 identifies
transforming key institutions in agriculture, livestock, cooperative, fisheries and
lands. .

The sub- sectors within the Agriculture and Rural Development sector have
registered significant achievements in regard to the targets set despite limited
resource allocation. The major achievements in the last financial year include
reforms in the agricultural sector particularly land reforms; review and
development of agriculture sector policies; revitalization of the cooperative
movement through review of the Cooperative Societies Act; increased
production and productivity; better animal health through reduced incidences of
diseases; improved and sustainable land use planning and management;
improved coordination of management and development of the fisheries
resources and; value addition.

Some key challenges slowed the implementation pace thus affecting the sector
performance. Although resource allocation to the sector has increased over the

2
years, it is still below the recommended level of 10% of GDP as per the Maputo
declaration. Efforts to modernize the agriculture sector, production and
productivity have remained low due various socio economic and environmental
factors. The main issues are: limited arable land; slow technology development
and adoption; gender inequality; adverse climate; inadequate crop and livestock
diversification; emerging pests and diseases; and lack of effective marketing
system among others.

As part of the wider public sector reforms, the government financial reforms
have incorporated new ways in the budgetary process which aims at
strengthening the link between policy, planning and budgeting. Indicative
Program Based Budgeting was rolled out and is in its second year of
implementation. In addition, the Government introduced gender responsive
budgeting. The preparation of this report was informed by the inputs from the
affiliated sector ministries through their individual Ministerial Public
Expenditure Reviews. (MPERs) The sector ministries have based their resource
requirements for the next MTEF period on the Vision 2030 first MTP (2008 –
2012); Strategic Plans; and the Agriculture Sector Development Strategy (ASDS)
among other policy documents.

1.1 Sector Vision and Mission

Sector Vision
An innovative, commercially-oriented and modern Agriculture and Rural
Development Sector

Sector Mission
To improve livelihoods of Kenyans through promotion of competitive
agriculture, sustainable livestock and fisheries sub-sectors, growth of a viable
cooperatives sub sector, equitable distribution and sustainable management of
land resources.

1.2 Str ategic goals/objectives of the Sector

a. Strategic Goals
The Sector works towards achievement of the following strategic goals;
i. Competitive agriculture through creation of an enabling environment and
provision of support services;
ii. Sustainable livestock and fisheries development;
iii. Vibrant and self-sustaining cooperative movement;
iv. Sustainable administration and management of land resource.

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b. Strategic Objectives

In order to achieve the goals of the Vision 2030 and the Medium Term Plan, 2008-
2012, the Agriculture and Rural Development Sector will focus on the following
strategic objectives:
• Reforming institutions by transforming key organizations, such as
cooperatives, regulatory bodies and research institutions, into
complementary and high performing entities that facilitate growth in the
sector;
• Increasing productivity through provision of widely-accessible inputs and
services to farmers, pastoralists and fisher folk;
• Transforming land use to ensure better utilization of high and medium
potential lands;
• Developing arid and semi-arid areas for crops, livestock and fisheries
production;
• Facilitating comprehensive land reforms;
• Increasing market access through value addition by processing, packaging
and branding the bulk of agricultural produce;
• Re-orientate extension services to emphasize gender sensitization and
participatory planning to enhance their responsiveness to the needs of
women.

1.3 Sub Sectors and their Mandates

1.3.1 Agriculture
i. Formulation, implementation and monitoring of agricultural legislations,
regulations and policies;
ii. Provision of agricultural extension service;
iii. Supporting agricultural research and promoting technology delivery;
iv. Facilitating and representing agricultural state corporations in the
government;
v. Development, implementation and co-ordination of programmes in the
agricultural sector;
vi. Regulation and quality control of inputs, produce and products from the
agricultural sector;
vii. Management and control of pests and diseases in crops;
viii. Promoting management and conservation of the natural resource base for
agriculture;
ix. Collecting, maintaining and managing information on the agricultural
sector.

1.3.2 Cooperative Development and Marketing

i. Co-operative Policy and Implementation;

ii. Co-operative Legislation and Support Services;
iii. Co-operative Education and Training;

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 iv. Co-operative Financing Policy;
v. Co-operative Savings, Credit and other Financial Services Policy;
vi. Co-operative Governance;
vii. Co-operative Tribunal;
viii. Co-operative College;
ix. New Kenya Co-operative Creameries;
x. Co-operative marketing, including value addition processing;
xi. Promotion of Co-operative Ventures.

1.3.3 Fisheries Development

i. Fisheries policy formulation and review;
ii. Fisheries licensing;
iii. Management and development of marine fisheries including the Exclusive
Economic Zone (EEZ);
iv. Management and development of Fresh water Fisheries;
v. Commercialization including formation of fisheries groups for local
fishermen;
vi. Promotion of fish quality assurance, value addition and marketing;
vii. Development of aquaculture;
viii. Marine and Fisheries Research;
ix. Promotion of recreational fisheries.

1.3.4 Lands
i. Formulation and implementation of Land Policies;
ii. Physical Planning;
iii. Land transactions;
iv. Survey and Mapping;
v. Land Adjudication;
vi. Settlement matters;
vii. Land registration;
viii. Valuation;
ix. Administration of State and Trust Land;
x. Land information management systems.

1.3.5 Livestock Development

i. Formulation and implementation of livestock sub-sector policies;
ii. Management and control of livestock diseases and pests;
iii. Provision and facilitation of extension services;
iv. Development and co-ordination of development programmes in the
livestock sub-sector;
v. Regulatory management and quality control of inputs, produce and
products;
vi. Livestock research agenda setting, liaison and coordination;
vii. Promotion and development of emerging livestock;
viii. Monitoring and evaluation of programmes and policies in the livestock
sub-sector.

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1.4 Autonomous and Semi-Autonomous Government Agencies

1.4.1 Agriculture
Financial Corporations:
• Agricultural Finance Corporation;
• Coffee Development Fund.
Commercial/Manufacturing Corporations:
• Agrochemical and Food Company Limited;
• Sony Sugar Company;
• Nzoia Sugar Company;
• Chemelil Sugar Company;
• Kenya Seed Company;
• Nyayo Tea Zones Development Corporation;
• Pyrethrum Board of Kenya;
• National Cereals and Produce Board;
• Miwani Sugar Company (in receivership);
• Muhoroni Sugar Company (in receivership).
Service Corporations:
• Agricultural Development Corporation.
Regulatory Corporations:
• Coffee Board of Kenya;
• Tea Board of Kenya;
• Horticultural Crops Development Authority;
• Kenya Sisal Board;
• Cotton Development Authority;
• Kenya Sugar Board;
• Kenya Plant Health Inspectorate Service;
• Pest Control Products Board;
• Kenya coconut Development Authority.
Training Institution:
• Bukura Agricultural College.
Statutory Boards:
• Central Agricultural Board;
• Agricultural Information Resource Centre;
• Sugar Arbitration Tribunal;
• Seed Tribunal.

1.4.2 Cooperative Development & Marketing

Cooperative College of Kenya;
SACCO Societies Regulatory Authority (SASRA);
New Kenya Cooperative Creameries (New KCC)

1.4.3 Lands
The sub sector has no Semi-Autonomous Government Agencies.

6
1.4.4 Livestock Development
Kenya Dairy Board;
Kenya Meat Commission;
Central Artificial Insemination Station;
Kenya Veterinary Board

1.5 Role of stakeholders

The various stakeholders involved in the agricultural and rural development can
be categorised as public sector institutions, private sector, research institutions,
Non-Governmental Organizations (NGOs), development partners, Community-
Based Organizations (CBOs), professional associations, and cooperative societies.
They all play different and crucial roles in the sector growth and development
and therefore needs proper coordination.

These stakeholders collectively bring together farmers, fisher folks and

pastoralists to pool their resources and efforts in order to maximize their returns.
Stakeholders’ organizations also assist in facilitating access to inputs, credit,
markets, market information, extension services, production, education,
information and advocacy for their members. The benefits accruing from farmer
organizations require the greatest attention to ensure their continued existence
and vitality. In this regard, the government, together with the key stakeholders
in the sector, will take the necessary steps to ensure formation and sustainability
of strong farmer organizations. Specific efforts will be made to encourage
women to establish and join farmer organizations. Public Private Partnership
facilitates joint effort between the government and the private sector in sector
policy formulation and implementation. Further the private sector and the
development partners have continued to supplement government efforts in
resource mobilization. The stakeholders will also be involved in monitoring and
evaluation of projects and programmes within the sub-sectors. Participation of
the stakeholders will ensure ownership and thus enhance the impact of policies,
projects and programmes on the target beneficiaries.

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 CHAPTER TWO:

PERFORMANCE AND ACHIEVEMENTS OF THE

SECTOR DURING THE PERIOD 2006/07-2008/09

8
2.1 Performance of Programmes and Key Indicators of Sector and
Sub-Sector Performance

2.1.1 Agriculture

Programme/activities indicators Targets Achievement Remarks

Programme 1: Crop Development and Management

No. of oil palm seedlings raised 100, 000 85, 000
& distributed in Western Kenya.

No. of field surveillances for 42 42

detection of migratory and post
harvest pests
No. of MT of orphan crops 1000 975.8
planting material supplied to
farmers and planted
No. of agricultural technologies 7 7 Included Jab planters, Drip
promoted in land management Irrigation Kits and ploughs
for black cotton soils.
No. of farmers trained on soil 250,000 255,640 50% of the farmers trained
and water conservation were females.
No. of farms laid with soil and 80,000 81,019
water conservation structures
No. of farmers reached with 2.7 Million 2.93 million Target surpassed due to
extension. added support by other
service providers. 70% of
these farmers were
females, 20% males & 10%
youths.
No. of policies and bills prepared 4 policies & 4 4 draft policies &
Bills 4 bills
No. of community groups 600 557 60% of the target group
supported with grants for food membership is composed
security interventions of females.
No. of Private Sector 32 25
Organizations supported Food
Security Innovations
No. of agricultural water 10 7
harvesting structures
constructed
Programme 2: Agribusiness and Information Management
No. of publications of market 300 298
prices in the daily newspapers
No. of farmers supported with 35,000 90,180 Target surpassed due to
fertilizers and seeds. (48% of additional support by
these are women) development partners.
No. of agricultural input 1600 1680
suppliers trained. (35% of these
are women).
No. of markets developed for 11 8 The final 3 to be finalised
agricultural commodities in 2009/2010 financial
year.

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2.1.2 Cooperatives Development & Marketing

Programme/activities Targets Achievement Remarks

indicators
Programme 1: Cooperative Development & Management
Bill Enacted Bill enacted by Sacco Bill enacted SASRA board
June 2009 into an Act of constituted & hiring of
parliament in CEO in process
December 2008
Outstanding remittances to From Kshs 1,500 From Kshs 1,500
Sacco’s reduced to Kshs 500 million to Kshs 800
million million
Governance & Ethics Board launched Board was launched
Commission operationalized
Prudential standards and 5 manuals 3
codes of ethics developed developed
Computerized audit system 1 1 System being tried
developed alongside manual
system
Number of audits filed 4,000 registered 4,170 accounts were
registered
Number of disputes resolved 1,000 cases 764 cases and 19
by the cooperative tribunal appeals handled
Construction of lecture 1 1
/training theatre at the
Cooperative College of Kenya
Number of feasibility studies 10 7 Capacity building
carried out needed
Programme 2: Cooperative Marketing
Number of societies engaged 10 8
in value addition
Cooperative marketing 1 1 CMIS has been tested
information (CMIS) system for better reports
Cooperative Marketing 1 1
Strategy developed

1.1.3 Fisheries Development

Programme/activities indicators Targets Achievement Remarks

Programme: Fisheries Development
Number of policies finalized and 1 1 National Oceans &
published Fisheries Policy
published
Number of fish farms upgraded / 8 8
up-scaled
Number of fish fingerlings produced 4 million 3 million Shortfall occasioned by
slow expansion of
hatcheries
Number of development strategies 1 0 Draft National
developed Aquaculture
Development Strategy in
place

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Programme/activities indicators Targets Achievement Remarks

Number of cold stores constructed 4 2 Two incomplete due to

delays in delivery of
imported equipment
Number of samples of fish, water 384 384
and sediments analyzed
Percentage completion of installation 100 95 Completion delayed by
of Vessel Monitoring System (VMS) slow process of
connection to satellite
Number of fisheries frame surveys 4 4
conducted
Number of Catch Assessment 20 20
Surveys carried out
Number of fish processing industry 10 10
stakeholder workshops held
Number of fish farmers trained 1,200 1,800
Number of new fish farmers 100 100
recruited
Number of fisheries personnel 300 300
trained
Number of Beach management Units 360 360
(BMUs) trained.
Number of extension manuals 1 1
developed
Number of rivers restocked 2 2
Number of microbiological 3 3
laboratories constructed

1.1.4 Lands

Programme/activities Targets Achievement Remarks

indicators
Programme: Land Policy and Planning
Percentage of National Land 100% 90% Draft National land policy
Policy formulated approved by Cabinet;
Draft Sessional paper prepared
and submitted to the Minister for
forwarding;
Sensitized the parliamentary
committee on land and national
recourses.
Percentage of National Land 30% 5% Implementation manual
Policy implemented prepared;
60% roll out plan for public
awareness.
Percentage of Land Use Policy 20% 5% Concept paper prepared for
formulated stakeholder’s discussion and
ownership.
Percentage of National Land 50% 35%
use/spatial plan prepared
Number of land registries 4 0 60% of the land registries
rehabilitated and banking hall complete;
constructed. Banking hall at ring beam.

11
Programme/activities Targets Achievement Remarks
indicators
Percentage of National Land 20% 5% Data was captured.
Information Management
System developed
Amount of revenue collected Ksh.6,000b Ksh.5,937 b The revenue collection was
hampered by lack of franking
machine which is being procured
Number of titles issued 300,000 166,401 Not achieved due to succession
dispute in Nyanza where over
60% of land owners are deceased
thus complicating issuances of
titles due to the long legal
procedures.
Valuation for Stamp Duty 20,000 21,302 Surpassed
Number of damaged land 53 53 Achieved
documents repaired and
replaced
Number of discharge of 3000 3192 Achieved
charge and transfer
documents prepared
Percentage of land rent 50% 48% 170,000 records out of 185,000
records computerized and were computerized and 71,375
scanned records out of 77,000 scanned.
Number of landless settled 17,000 17,266 Surpassed
Number of adjudication 30 30 Achieved
sections finalized
Number of land adjudication 11,000 12,787 Surpassed
disputes resolved
Number of National/Urban 10 10 Achieved
topographical base map
sheets revised
Number of deed plans 8,000 9,500 Surpassed
prepared
Percentage of physical 50%. 60% Surpassed
development plans finalized
Number of boundary pillars 70 80 Surpassed
inspected and maintained

2.1.5 Livestock

Programme/activities Targets Achievement Remarks

indicators
Programme 1: General and support services
Number of draft Sessional 5 draft Sessional papers 5 draft Sessional
papers and policies and policies finalised papers developed.
developed on poultry, developed.
animal breeding,
beekeeping and animal
feeds policies.
Programme 2:Livestock Extension and Production
No of breeds improved and 3300 genetically 3,200 animals
distributed to farmers to improved animals distributed
enhance production and distributed to farmers.

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Programme/activities Targets Achievement Remarks
indicators
productivity.
No of new districts where 6 new districts 4 new districts
camel rearing is introduced. introduced to camel
rearing.
No of farmers trained on 700,000 farmers trained 500,000 farmers
animal husbandry (210,000 male & 490,000 trained (200,000 males
management skills. females). & 300,000 females)
No of water pans 10 water pans in the 13 water pans
rehabilitated ASAL districts rehabilitated
rehabilitated
No of holding grounds 3 holding grounds 2 holding grounds
rehabilitated rehabilitated rehabilitated.
Livestock marketing 6 markets linked to the 7 markets linked
information system in place National Livestock
Market Information
System.
No of slaughter houses 3 slaughter houses 3 slaughter houses
constructed construction started under construction.
Hectares of range 6,000 Hectares to be 4,800 Hectares
rehabilitated rehabilitated rehabilitated
No of farmer groups linked 30 farmers groups to be 19 farmer groups
to Financial Service linked linked
Providers
No of district offices 44 districts offices 28 districts completed Other on-going
constructed and refurbished construction works
to be completed in
09/10
Programme 3:Livestock diseases and pest control
No of carcasses of food 12,000,000 carcasses to 10,500,000 carcasses
animals inspected be inspected inspected
Doses of semen produced 1,900,000 doses of 1,677,000 doses
semen produced and produced and
distributed distributed
No of livestock vaccinated 40 million animals to be 34,705,504 livestock
vaccinated against vaccinated
notifiable diseases.
No of disease zonation 36 disease zonation 36 maps developed
maps developed maps developed
Certification of freedom Certification of freedom Certification granted
from trade sensitive from Rinderpest
diseases by World Animal infection in the year
Health Organisation (OIE) 2008/09
No of animals branded 920,000 animals to be 883,285 animals
branded branded
No of disease free zone Creation of 3 Disease No DFZ initiated.
initiated free zones initiated
No of laboratory diagnostic 2 million laboratory 1,680,528 samples
samples analysed investigation and analysed
diagnostic samples
analysed.
% reduction of hides and 25% reduction of hides 20% reduction
skins defects and skins defects

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Programme/activities Targets Achievement Remarks
indicators
No of officers trained 3,246 staff members and 2,100 trained.
pre-service trained in
local and overseas
courses
No of farmers trained on 1,500 farmers to be 1,362 farmers trained
tsetse control technologies trained
No of animals treated 300,000 animals treated 43,412 animals
for trypanosomiasis treated
No of pilot demonstration 7 demonstration farms 5 farms established.
farms established in tsetse controlled
areas to be established
No of Tsetse control targets 13,000 targets deployed 12,697 targets
deployed deployed

2.2 Expenditure Analysis

Total resource allocation by government to the sector increased during the

review period by 22.1% from Kshs. 17,963.5 million in 2006/07 to Kshs. 21,933.3
million in 2008/09. However, the allocation to the sector as a proportion of total
government budget has fluctuated during the period under review standing at
3.11% in 2006/07 to 3.43% in 2007/08 and down to 2.89% in 2008/09
respectively. An analysis of the sector’s total expenditures shows that absorption
capacity has continued to average over 90% over the review period. This has
ranged from 91.4% to 98% reached in 2008/09.

Trends in total expenditure (Kshs. Millions)

Sub Sector ORIGINAL BUDGET ESTIMATES ACTUAL EXPENDITURE

2006/07 2007/08 2008/09 2006/07 2007/08 2008/09

MOA 9,310.2 13,754.4 13,094.9 9,619.3 13,523.2 13,138.6

MCD&M 887.7 1,060.8 1,101.0 932.3 1,012.5 982.1
MFD 778 845 870 754 785 763
MoL 2,064.6 3,371.9 2,308.04 1,910.6 3,058.4 2,036.07
MLD 4,923 5,474 4,559.4 3,705 4,009 4,521.1
Total 17,963.5 24,506.0 21,933.34 16,921.2 22,388.1 21,440.87

2.2.1 Analysis of Recurrent Expenditure

Trends in recurrent expenditure (Kshs. Millions)

Sub Sector ORIGINAL BUDGET ESTIMATES ACTUAL EXPENDITURE

2006/07 2007/08 2008/09 2006/07 2007/08 2008/09
MOA 5,658.4 9,598.3 7,805.0 5,464.5 9,500.9 7,530.2

14
Sub Sector ORIGINAL BUDGET ESTIMATES ACTUAL EXPENDITURE
2006/07 2007/08 2008/09 2006/07 2007/08 2008/09
MCD&M 699.1 850.8 882.0 773.6 845.1 853.3
MFD 700 707 699 703 660 673
MoL 1,703.0 1,473.4 1,659 1,807.1 1,603.0 1,682.55
MLD 2,211 2,441 3,579.3 2,362 3,258 3,425.3
Total 10,971.5 15,070.5 14,624.3 11,110.2 15,867.0 14,164.35

Recurrent expenditures have also registered mixed performances during the

review period but grew by 33.2% between 2006/07 and 2008/09. Absorption
capacity has consistently been over 98% due ability of ministries to target
planned activities in their annual work plans. The sector’s share of total
government budget has generally ranged around 1.9% over the review period.

2.2.2 Analysis of Development Expenditure

Development budget allocations to the sector increased by 37.4% from Kshs.

6,265 million in 2006/07 to Kshs. 8,608 million in 2008/09. However, the
allocations as a share of total government budget have remained dismally low
averaging about 1.1% annually. Absorption capacity has ranged from 88% in
2006/07, 79% in 2007/08 and 84% in 2008/09. The main reasons for reduced
absorptions is delayed disbursements of donor funds, donor conditionalities and
lack of records on funds expended directly by donor on behalf of government.

Trends in development expenditure (Kshs. Millions)

Sub Sector ORIGINAL BUDGET ESTIMATES ACTUAL EXPENDITURE

2006/07 2007/08 2008/09 2006/07 2007/08 2008/09
MOA 3,651.8 4,156.1 5,289.9 4,478.0 4,022.2 5,608.4
MCD&M 188.6 210.0 219.0 158.7 167.4 128.9
MFD 78 138 171 51 125 90
MoL 361.7 1,898.5 649.04 103.5 1,455.5 353.51
MLD 2,185 1,896 2,279.3 722 750 1,095.8
Total 6,265.10 8,298.6 8,608.24 5,513.2 6,520.1 7,261.61

2.2.3 Analysis of Externally Funded Programmes

Trends in externally funded programmes (Kshs. Millions)

Sub Sector ORIGINAL BUDGET ESTIMATES ACTUAL EXPENDITURE

2006/07 2007/08 2008/09 2006/07 2007/08 2008/09

MOA 882.0 1,069.7 4,160 612.6 1461.3 2,507

15
Sub Sector ORIGINAL BUDGET ESTIMATES ACTUAL EXPENDITURE

2006/07 2007/08 2008/09 2006/07 2007/08 2008/09

MCD&M 9.1 0 0 8.1 0 0

MFD 0 87 87* 0 0 22

MoL 71.9 50.5 79.34 25.0 0 36.44

MLD 961.5 1,325.3 939.42 262.2 736.8 573.54

Total 1,924.5 2,532.5 5,179.0 907.9 2,198.0 3,139.0

There has been a tremendous increase in externally funded programmes to the

sector over the period rising by 169.2% from Kshs. 1,924 million in 2006/07 to
Kshs. 5,719 million in 2008/09. Absorption capacity has generally been low
ranging from 47% in 2006/07 to 60.6% in 2008/09 although there were marked
improvements in utilization in 2007/08 at 86.8%. The main reasons for this
include delayed disbursements, cumbersome international procurements
procedures and lack of data on funds expended directly by donors on behalf of
government. However, the role of development partners to the sector is
considerable with their resources forming a significant of the sector’s
development budget. This share stood at 30.7% in 2006/07 and rose significantly
to 60% in 2008/09.

2.3 Review of Pending Bills

The sector’s total portfolio of pending bills as at 2008/09 stands at Kshs. 523.62
million with recurrent budget pending bills at Kshs. 269.9 million while
development budget pending bills at Kshs. 253.72.

Trends in pending bills (Kshs. Millions)

Sub Sector Recurrent Development

2006/07 2007/08 2008/09 2006/07 2007/08 2008/09
MOA 194.8 127.2 250.0 0.00 0.00 181.0
MCD&M 2.3 6.0 2.54 0 0.6 14.9
MFD 0 7.7 0 0 20.0 0
MOL 39.5 39.9 12.96 0 0 22.50
MLD 3.4 15.6 4.4 0 27.7 35.32
Total 240 196.4 269.9 0 48.3 253.72

16
 CHAPTER THREE:

MEDIUM TERM PRIORITIES AND FINANCIAL PLAN

FOR THE MTEF PERIOD 2010/11-2012/13

17
3.1 Prioritization of Programmes and Sub-Programmes

3.1.1 Programmes and their objectives

a) Ministry of Agriculture

Programme 1: Policy, Strategy and Management of Agriculture

The development of the agricultural sector depends on the creation of an

enabling environment through appropriate policy, legal and regulatory
frameworks and provision of strategic administrative and financial management
direction to the stakeholders.

Programme 2: Crop Development and Management

To increase productivity and management by promoting competitive agriculture

through improved extension advisory support services, appropriate technology
transfer, management of pests & diseases while ensuring sustainable natural
resource management for agricultural development

Programme 3: Agribusiness and Information Management

To promote sustained growth in agriculture based on market and product

development and information management through the provision of appropriate
technical, advisory and logistical support for investments and increased rural off-
farm incomes.

b) Ministry of Cooperative Development & Marketing

Programme 3: Cooperative Development & Management

To ensure cooperative societies comply with cooperative management
guidelines.

Programme 4: Cooperative Marketing

To promote market access, value addition and marketing efficiency of
Cooperatives

c) Ministry of Fisheries Development

Programme 5: Fisheries Development

To maximize the contribution of fisheries to the achievement of national
development goals especially poverty reduction, food security and creation of
employment and wealth

18
d) Ministry of Lands

Programme 6: Land Policy and Planning

To create a conducive environment for land administration and management
through assuring accessible, accurate and secure land information to speed up
development

e) Ministry of Livestock Development

Programme 7: Livestock Resources Management and Development

• To create an enabling policy and legal environment for developing ,
utilizing value adding , capacity building and quality assurance for
livestock resources
• To provide services in livestock production technologies, disease and
vector control and increase market access

3.1.2 Programmes, Sub-Programmes, Expected Outcomes, Outputs and Key

Performance Indicators for the Sector

a) Ministry of Agriculture

Programme 1: Policy, Strategy and Management of Agriculture

Outcome: Improved livelihood of Kenyans through increased agricultural productivity.
Key Outputs (KO) Key Performance 2010-11 2011-12 2012-13
Indicators (PI)
SP1.1 Development/Review of Agricultural Policy, Legal and Regulatory Frameworks
Policy framework 15 policies reviewed 5 (Oil Crops, 5 5
reviewed and developed Nut Crops, Soil
into bills and submitted Fertility and
to the Attorney General Conditioners,
KEPHIS,
Consolidated
Agriculture
Sector Reform
bills)
SP1.2 Agricultural Planning and Financial Management
Agricultural Agricultural - Agricultural Agricultural
Development Fund Development Fund Development Development
Established operationalized Fund Fund
operationalized operationalized
Programme 2: Crop Development and Management
Outcome: Improved livelihood of Kenyans through increased agricultural productivity.
Key Outputs (KO) Key Performance 2010-11 2011-12 2012-13
Indicators (PI)
SP2.1-Land and Crops Development
Surveillances and 36 colony surveys and 12 12 12
control of strategic pests 36 roost surveys to be 12 12 12
carried out carried out

19
Crop seeds Multiplied 3700 Metric Tonnes of 1000 1200 1500
and distributed crop seeds Multiplied
and distributed
Reference materials on 1Mulberry- sericulture 23 technical
horticulture prepared manual and 23 pamphlets
horticulture crop
based technical
pamphlets,
3 manuals, developed 2 1
on crop production
technologies
Water harvesting pans 270 Water harvesting 80 90 100
constructed for pans constructed
agricultural use.
Agricultural machinery 15 bulldozers 5 5 5
Services Capacity (AMS) 1 5 tractors 5 5 5
( strengthened 3graders and 1 1 1
3 low loader bought 1 1 1
SP 2.2 Food Security Initiatives

Community groups Fund 5670 farmer 1270 1800 2600

supported under Njaa groups carrying out
Marufuku programme various agricultural
activities. (60% of
group membership
should be women)
Fund 210 schools 60 70 80
under community
based school meals
programme.
Fund 90 Community 25 30 35
Based Organizations
to upscale food
security initiatives
SP 2.3 -Agriculture Extension Services

Agricultural Training 15 ATCs rehabilitated 5 5 5

Centres and Institutions and equipped
modernized
Agricultural 46 appropriate 13 15 18
technologies that are technologies packaged
gender responsive and promoted
improved
Farmers trained on Farmers trained/ 64 70 70
appropriate technologies reached. (70% women,
20% men & 10%
youth)
Programme 3: Agribusiness and Information Management
Outcome: Sustained growth in agriculture through market, information dissemination and value
addition
Key Outputs (KO) Key Performance 2010-11 2011-12 2012-13
Indicators (PI)
SP 3.1-Agribusiness & Market Development

Agricultural input 4700 stockists trained 1700 1500 1500

20
suppliers Trained country wide. (50% of
those will be women)
Modern agro-processing 15 agro-processing 5 5 5
technologies developed technologies
transferred to the
farming community
Economically challenged 480,000 farmers 150,000 160,000 170,000
farmers provided with
quality inputs
SP 3.2 Agricultural Information Management
Recorded radio 156 radio programs 52 52 52
programs, produced, recorded(sikio la
recorded, and aired on mkulima)
agricultural commodities
technology, information 364 vernacular 364 364 364
and marketing. programmes on
agriculture
produced/aired
Agricultural Farmers Agricultural Farmers
Information System Information System 1
established operational

Information on 63 23 20 20
enterprises

b) Ministry of Cooperative Development & Marketing

Programme 1: Cooperative Development & Management

Outcome: Strengthened cooperative management and regulation
Key Outputs Key Performance Indicators 2010/11 2011/12 2012/13
SP1: Cooperative Governance and Accountability
SACCO Regulatory Authority SASRA operationalized SASRA
operationalized operational
ized
SACCOs complied with Act & 50 SACCOs complying by - 20 30
SASRA regulations 2013
Outstanding remittances to Amount of outstanding From Kshs Kshs 400 to Kshs 200
SACCOs reduced remittances reduced from 800 to 400 200 millions to
Kshs 800m to nil millions millions nil
Disputes in co-operative % of cases arbitrated by the 90 90 90
movement resolved Cooperative Tribunal
SP2: Cooperative Advisory and Extension Services
Improved access to 300 co-ops reached 50 100 150
cooperative information, ( At least 30 % of trainees to
extension and advisory be women)
services
Co-operative societies 450 societies sensitized 150 200 300
sensitization on the provision
of the SACCO Act
Cooperative 45 cooperative societies 10 15 20
societies/organizations revived/revitalized/restruct

21
revived ured
/revitalized/restructured
SP3: Cooperative Education and Training
Improve management of key Management for 300 co- 100 100 100
cooperative operatives trained
organizations/Institutions
SP4: Cooperative ventures
New cooperatives ventures 10 new cooperative 3 3 4
initiated initiatives at least 1/3 of
which targets at youth &
women
Programme 2: Cooperative Marketing
Outcome: Market and market access improved
Outputs Key Performance Indicators 2010/11 2011/12 2012/13
SP1: Commodity value addition and market access
Improved capacity for Value 300 cooperative societies 100 100 100
addition sensitized on value addition

c) Ministry of Fisheries Development

Programme : Fisheries Development

Outcome: Increase fisheries contribution to GDP
Key Outputs Key Performance 2010/11 2011/12 2012/13
Indicators
Sub Programme 1:Aquaculture Development
National Aquaculture Strategic One National Aquaculture 1
Plan developed Strategic Plan
Aquaculture policy and Aquaculture policy and 1
legislation (Act) legislation (Act)

Aquaculture research facilities Four aquaculture research 2 1 1

at Sagana, Kabonyo, Ngomeni facilities up scaled
& Kiganjo up scaled
Hatcheries / fish multiplication Nine hatcheries / fish 3 3 3
centres (at Chwele, Wakhungu, multiplication centres
Lutonyi, Kisii, Kithima, developed
Ndaragua, Muranga,
Kinondoni & Nyamira)
developed
Increase acreage of land under 2400 hectares of land under 800 800 800
aquaculture production aquaculture production
Increase fish production from15,000 Metric Tons of 7,000 10,000 15,000
aquaculture annual aquaculture
production by 2012/2013
Fingerlings supplied to farmers 84 million fish fingerlings 28 million 28 million 28 million
supplied to farmers
Farmers trained in fish farming 29,600 men and 12600 14,000 14,000 14,000
husbandry women fish farmers trained
Field days for fish farmers held 24 field days 8 8 8
Aquaculture training centre Aquaculture training centre 1
established

22
Sub Programme 2: Capture Fisheries Management and Development
Operational Fisheries Patrol Four Fisheries Patrol Units 2 1 1
Units (L. Victoria, L.Turkana, L. operationalized
Naivasha & Coast)
Data and information on fish 12 catch assessment surveys 4 4 4
landings generated
Ecosystem Fisheries Six Ecosystem Fisheries 2 2 2
Management Plans developed Management Plans
& implemented
Fish refugia demarcated, 4 Fish refugia demarcated, 1 1 2
gazetted and protected in L. gazetted and protected
Turkana, L. Victoria, Naivasha,
and Marine waters
Marine training centre Marine training centre 1
established
Rivers restocked with Trout 3rivers restocked in Mt. 1 1 2
Fish Kenya Region and one in
Mt. Elgon Region
Co-management of fisheries 360 beach management 120 120 120
resource adopted units trained (measures to
ensure active participation
of women)
Sub Programme 3:Fish Inspection and Quality Assurance
National Fish Inspections 150 National Fish 50 50 50
carried out Inspection
Inland lakes and marine 360 Sample analysis 120 120 120
products certified Reports
Comprehensively documented 200 Hard copies and 50 75 75
market data and information information up loaded on
Internet
Fish Auction Centres 18 Fish Auction Centres 3 8 7
constructed
Completed and operational 3 Laboratories 1 1 1
laboratories (In Nairobi,
Mombasa and Kisumu)
Cold storage facilities complete Eight cold storage facilities 3 3 2
and operationalized
Online processing of fish and Online processing system 1
fish products export documents of fish and fish products
adopted export documents adopted
by 2010/11
Value addition technologies Six value addition 2 2 2
piloted technologies

23
d) Ministry of Lands

Programme: Land Policy and Planning

Outcome: Efficient, effective and sustainable land management
Key Outputs Key Performance 2010/11 2011/12 2012/13
Indicators
SP 1- Land Reform Programme
Comprehensive 60% of National Land 20 20 20
National Land Policy Policy recommendations
implemented implemented

Land related laws 60% Land related laws 20 20 20

harmonized harmonized
SP 2- Land Information Management
GIS based National 60% of National Land 20 20 20
Land Information Information System
Management System developed
developed
80% of Land paper records 20 30 30
scanned and safeguarded
Constructed and 12 Land Registries 4 4 4
rehabilitated Land constructed and
registries rehabilitated

Kenya National Spatial 60% of Kenya National 20 20 20

Data Infrastructure Spatial Data framework
framework Developed
Developed
Kenya National Spatial 100% of Kenya National 70 20 10
Data Infrastructure Spatial Data Infrastructure
Policy Policy
Developed Developed
SP 3- Land Surveying and Mapping
National and 270 National /urban 80 90 100
international boundary Topographical base map
pillars inspected and sheets developed
rehabilitated
Establishment of 25 No. of Geodetic control 5 10 10
Geodetic control points points established
Deed plans 29,500 deed plans prepared 9,500 10,000 10,000
prepared
National topographical 35 National topographical 10 12 13
and thematic maps and thematic maps
updated updated
SP 4-Land Use Planning
Land Use Policy 80% of National Land Use 20 20 40
prepared Policy developed
Land Use plan/spatial 65% Percentage of Land 20 20 25
plan prepared Use Plan/Spatial Plan
prepared and approved

24
 Physical Development 100% of Physical 40 40 20
Plans prepared and Development Plans
approved approved and
Prepared
3 resort cities 100% preparation of plans 45 45 10
development plans completion for the 3 resort
approved cities
(Diani/Ukunda, Kilifi,
Isiolo)
Capacity building 9 local authorities 3 3 3
workshops on sensitized
development control for
local authorities
SP 5-Development Planning Services
Conversion of KISM 100% conversion of KISM 20 40 40
into a SAGA into a SAGA

Collection of Revenue Ksh.18,150b revenue 6,000 6,050 6,100

improved collected

SP 6-Land Settlement programme

Landless families 50,000 families settled 15,000 17,000 18,000
Settled
Adjudication sections 100 Adjudication sections 30 35 35
finalized finalized
Land adjudication and 40,000 land adjudication 12,000 13,000 15,000
boundary disputes disputes resolved
resolved
Title deeds registered 500,000 titles registered 160,000 170,000 170,000
and issued and issued
Land transactions 120,000 land transaction 35,000 35,000 50,000
registered registered
Land Acquisition for 100,000 acres of land 30,000 35,000 35,000
Public Purposes acquired
Stamp duty cases 70,000 Stamp duty cases 20,000 25,000 25,000
valued valued

e) Ministry of Livestock Development

Programme: Livestock Resources Management and Development

Outcome: Improve livestock industry performance
Key Outputs Key Performance 2010/11 2011/12 2012/13
Indicators
S.P.1: Livestock Diseases management and control
Incidence of trade sensitive 15% reduction 5 5 5
and trans boundary diseases
reduced
Livestock vaccinated against 18.3 million livestock 5 5.3 8
notifiable diseases vaccinated
Livestock branded 450,000 livestock 100,000 150,000 200,000

25
 branded
Creation of Disease Free Zones 2 Disease Free Zones 1 1 0
Started Started (Coast,
Laikipia/Isiolo
complex)
Certification/Renewal of Renewal/ 1 1 1
freedom from trade- sensitive certification of
diseases by the world animal freedom from one
health organization (OIE) diseases granted.
Disease risk maps developed 3 Disease Risk Maps 1 1 1
developed
Avian Influenza contingency Annual response 1 1 1
plan in place and reviewed plans
annually
Rift Valley Fever Contingency Contingency plan 1 1 1
Plan in place and reviewed document
annually
Supervision Of Ports Entry By 12 Missions 4 4 4
Veterinary Services
Holding Grounds Secured 50 Holding Grounds 30 15 5
And Infrastructure Improved Improved
Quarantine Stations Erected 7 Quarantine Stations 0 7 0
S.P.2: Livestock Extension and Capacity Building
Farmers trained on livestock 4.2m farmers trained 1.2 m 1.5m 1.5m
production technologies
Staff capacity building on 55 staff trained 15 (5women, 20 (7 women 20 (7 women
research enhanced 10men) 13 men) 13 men)
Joint diagnostic research 30 surveys carried 10 10 10
surveys carried out out.
New engendered innovations 6 packages 2 2 2
and knowledge packaged
S.P.3: Food safety and Animal Products Development
Local slaughter houses 3,498 slaughter houses 1,166 1,166 1,166
countrywide categorized and
graded
Certification of foods of animal 5,120 Certificates 1,500 1,700 2,000
origin for export and import issued.
carried out.
Additional municipalities and 25 municipalities and 7 8 10
Districts put under meat districts
inspectorate services by the
Ministry of Livestock
Carcasses of food animals 12 million carcasses 3.5 4.0 4.5
inspected inspected
All animals slaughtered in Animal inspected 100% 100% 100%
slaughter houses and abattoirs
are inspected to ensure food
safety
S.P.4:Vector and Pest control
Incidence of Trypanosomiasis Trypanosomiasis 5% 5% 5%
In L. Victoria Basin, L. Baringo, Incidence reduced by
Mwea/Meru Regions reduced 15%
Integrated Vector Management Six studies 3 2 1

26
Strategies developed. undertaken
Focal Vector control 75 groups established 25 25 25
development groups
established
Training of farmers on safe use 12 trainings carried 4 4 4
of animal pests control out
products and environmental
management carried out
New animal pests control Nine products tested 3 3 3
products tested and submitted
to Pest Control Products Board
(PCPB) for registration
Tsetse stations (Kiboko, 4 stations 2 1 1
Kiburini, Trans-Mara and
Busia) rehabilitated
S.P.5: Livestock Production and Management
Animal Breeding master-plan 1 Master-plan 1 - -
developed
Quality breeding animals bred 2,700 animals 1,000 1,200 1,500
and availed to farmers ( dairy,
sheep, goats ) for improved
productivity
Livestock for breeding 90,000 animals 20,000 30,000 40,000
evaluation registered registered
semen produced and 1.5 million doses of 500,000 500,000 500,000
distributed to farmers semen produced
Indigenous animal genetic 3 animal species 1 1 1
species characterized and patented
patented
Denuded rangelands 30,000 acres 10,000 10,000 10,000
rehabilitated rehabilitated
S.P.6: Laboratory Services Quality Assurance and Bio-safety
Veterinary laboratory 51,000 million samples 17,000 17,000 17,000
investigation and diagnostic analyzed
samples analyzed
- Inspectorate services for 1800 livestock inputs 450 600 750
quality of inputs and service outlets and hatcheries
provision inspected and
licensed
S.P: 7 Support to livestock Livelihoods and Early Warning Systems
Livestock early warning 1 Early Warning 1 0 0
systems established system
Livestock Restocking and off Livestock off-take 1 0 0
take fund established fund
Livestock off take facilitated 50,000 animals 10,000 20,000 20,000
An early livestock warning 2 response units 2 0 0
and Rapid response system for
disease outbreak and forage
established
S.P.8: Livestock Products Value addition and marketing
Livestock products (i.e. 9 value chains 3 3 3
Leather, honey, milk) value promoted
chains promoted and
developed

27
holding grounds secured and 9 holding grounds 2 3 4
infrastructure improved improved
SP 9.Livestock Policy Development and Programmes Management
Policies Sessional papers 5 Sessional papers 2 2 1
developed developed
SP 10. Technical Capacity building for Livestock Industry

Staff members and pre-service 12 Performance 4 4 4

trainee trained in local and contract reports
overseas course

3.1.3 Sector Programmes

Policy, Strategy and Management of Agriculture

Crop Development and Management
Agribusiness and Information Management
Fisheries Development
Cooperative development and management
Cooperative Marketing
Land Policy and Planning
Livestock Resources Management and Development

3.2 Analysis of Resource Requirements

3.2.1 Sector Resource Requirements

The total resource requirement for the sector in the FY 2010/11 is Kshs. 52,857
million. This is a 121 percent increase from the allocated funds in 2009/10 of
Kshs 23,930. In 2011/12 and 2012/13 the projected estimates will increase by 7
and 6 percent respectively.

The total resource requirement is 9 percent of the total amount the agriculture
sector contributed to the economy in the year 2008. The funds will be utilized to
mitigate internal and external factors that affected the sector in 2008/09 and
ensure the contribution of agriculture sector increases in 2010/11 financial year.
These factors include 2008 post election violence, the global financial crisis and
high fuel prices leading to high costs of inputs, high food prices due to low
production, unseasonal weather patterns and drought.

Sector Printed estimates Projected estimates

(Million Kshs) (Million Kshs)
2009/10 2010/11 2011/12 2012/13
Agricultural and Rural 23,930 52,857 56,472 59,595
Development

3.2.2 Sub-Sector Resource Requirements

28
The sub-sector resource requirements in 2010/11 for the Agriculture, Fisheries,
Cooperatives, Lands and livestock increased by 62, 110, 7, 381 and 161 percent
respectively from the allocated funds in 2009/10. This increase will be utilized in,
Agriculture Development Fund, NAAIAP input subsidy programme
,strengthening agriculture mechanization stations, upgrading of aquaculture fish
farms/hatcheries, development of fish auction centres and fish port facilities at
Lamu in Fisheries sub-sector, operationalization of the newly established SASRA
in Cooperative sub-sector, development of a GIS based National Land
Information Management System and implementation of National Land Policy
in Lands sub-sector and implement disease free zones in livestock sub-sector.

Sub sector Printed Estimates Projected Estimates

(Million Kshs) (Million Kshs)
2009/10 2010/11 2011/12 2012/13
Agriculture 13,473 21,794 22,884 24,028
Cooperatives 1,146 2,245 2,393 2,513
Fisheries 2,107 4,416 4,794 4,869
Lands 2,535 12,212 13,127 13,909
Livestock 4,669 12,190 13,274 14,276
Total 23,930 52,857 56,472 59,595

3.2.3 Requirements by Programmes and Sub-Programmes

The resource requirements in terms of programmes increased as follows: crop

development and management, agribusiness and information management,
fisheries development, cooperative development and management, land policy
and planning and livestock disease management and development increased by
60 percent, 109 percent, 110 percent, 82 percent, 382 percent and 161 percent
respectively in 2010/11 from the allocated funds in 2009/10.

Programmes

Programme Printed Estimates Projected Estimates

(Million Kshs) (Million Kshs)

2009/10 2010/11 2011/12 2012/13

Policy, Strategy & 2,580 8,056 8,461 8,889
Management of
Agriculture
Crop Development and 10,291 12,481 13,103 13,753
Management
Agribusiness and 602 1,257 1,320 1,386
Information Management
Cooperative Development 1,098 2,003 2,152 2,259
& Management
Cooperative Marketing 48 241 241 253
Fisheries Development 2,107 4,416 4,794 4,869

29
Programme Printed Estimates Projected Estimates
(Million Kshs) (Million Kshs)

2009/10 2010/11 2011/12 2012/13

Land Policy and Planning 2,535 12,212 13,127 13,910

Livestock Resources 4,669 12,190 13,274 14,276

Management and
Development
Total 23,930 52,857 56,472 59,595

Sub Programmes

Programme Sub programme Printed Projected Estimates

Estimates (Million Kshs)
(Million Kshs)
2009/10 2010/11 2011/12 2012/13
Policy, strategy Development/ Review of 1,104 1,152 1209 1277
and Management Agricultural Policy, Legal
of Agriculture and Regulatory
Frameworks
Agricultural Planning and 1,476 6,904 7252 7612
Financial Management
Sub total 2,580 8,056 8,461 8,889

Crop Land & Crops 3,405 4,548 4,850 5,168

Development Development
and Management Food Security Initiatives 204 765 803 843
(NMK)
Agriculture Extension 6,682 7,168 7,450 7,742
Services
Sub Total 10,291 12,481 13,103 13,753
Agribusiness Agribusiness & Market 537 1,160 1,218 1,279
And Information Development
Management
Agriculture Information 65 97 102 107
and Service
Sub Total 602 1,257 1,320 1,386
Total 13,473 21,794 22,884 24,028
Fisheries Aquaculture Development 1,461 2,482 2,534 2,692
Development
Development and 515 1,496 1,559 1,461
management of capture
fisheries
Fish Inspection and 131 438 701 716
Quality Assurance
Total 2,107 4,416 4,794 4,869
Cooperative Cooperative Governance 214 270 290 305
Development & and Accountability
Management
Cooperative Arbitration 25 24 24 25

30
Programme Sub programme Printed Projected Estimates
Estimates (Million Kshs)
(Million Kshs)
2009/10 2010/11 2011/12 2012/13
Cooperative Extension 663 1104 1174 1233
Services
Cooperative Education 113 61 61 64
and Training
New Cooperatives 36 147 156 163
Ventures
Management capacity of 47 397 447 469
key cooperative
organizations/institutions
Sub Total 1,098 2,003 2,152 2,259
Cooperative Commodity Value 48 241 241 253
Marketing Addition/Market Access
Sub Total 48 241 241 253
Total 1,146 2,245 2,393 2,513
Land Policy and Land Reform programme 432 251 261 272
Planning
Land Information 548 2,606 3,072 3,265
Management
Land Mapping and 614 1,420 1,510 1,658
Management of National
Spatial Data
Land Use Planning 243 2,135 2,252 2,375
Development Planning 307 414 431 448
and Project Management

Land Settlement 391 5,386 5,602 5,892

programme

Total 2,535 12,212 13,127 13,910

Livestock Livestock Diseases 882 5,259 6,507 6,833
Resources Management and Control
Management and Livestock Extension and 794 1,803 1,564 1,597
Development Capacity Building
Food safety and Animal 274 295 297
Products Development 199
Vector and Pest Control 428 409 400 401
Livestock Production and 403 1,103 886 885
Management
Laboratory Services, 265 327 338 348
Quality Assurance and
Bio-safety
Support to Livestock 620 703 897 930
Livelihoods and Early
Warning Systems

Livestock Products Value 291 663 753 884

Addition and Marketing

31
Programme Sub programme Printed Projected Estimates
Estimates (Million Kshs)
(Million Kshs)
2009/10 2010/11 2011/12 2012/13
Livestock Policy 581 1,218 1,273 1,715
Development and
Programmes Management
Technical Capacity 206 431 361 386
building for Livestock
Industry
Total 4,669 12,190 13,274 14,276
Grand Total 23,930 51,860 55,420 58,526

3.2.4 Requirements by Economic classification

The capital expenditure had the highest increase in requirements. The current
expenditure requirements increased by 53 percent while the capital expenditure
by 240 percent.
In current expenditure compensation to employees increased by 26 percent, use
of goods and services by 139 percent and current transfers to government
agencies by 9 percent.

In capital expenditure acquisition of non-financial assets had an increase of 305

percent while capital transfers to government agencies increased by 4 percent.

Economic classification

a) Ministry of Agriculture

Expenditure Approved Estimates Projected Estimates

Classification 2009/10 (Million Kshs)
(Million Kshs) 2010-11 2011-12 2012-13
Current 7799 9000 9451 9923
Expenditure
Compensation to 2,894 3,069 3,223 3,384
Employees
Use of goods and 1,561 2,487 2,612 2,742
services
Current transfers 3,344 3,444 3,616 3,797
Govt Agencies
Other Recurrent - - -
Capital Expenditure 5674 12794 13433 14105
Acquisition of Non- 3,861 10,944 11,533 12,205
financial Assets
Capital Transfers to 1,813 1,850 1,900 1,900
Government
Agencies

32
Expenditure Approved Estimates Projected Estimates
Classification 2009/10 (Million Kshs)
(Million Kshs) 2010-11 2011-12 2012-13
Other Development - - - -
Total 13,473 21,794 22,884 24,028

b) Ministry of Cooperatives Development& Marketing

Expenditure Approved Estimates Projected Estimates

Classification 2009/10 (Million Kshs)
(Million Kshs) 2010/11 2011/12 2012/13
Current Expenditure 923 1,375 1,464 1,526
Compensation of 477 684 726 753
employees
Use of Goods and 316 483 527 548
Services
Grants and transfers 86 107 107 110
Other Recurrent 44 101 104 115
Capital Expenditure 223 872 930 986
Grants and transfers 61 90 98 100
Acquisition on Non- 85 353 373 403
financial Assets
Other Development 77 429 459 483
Total 1,146 2,245 2,393 2,513

c) Ministry of Fisheries Development

Expenditure Approved Estimates Projected Estimates

Classification 2009/10 (Million Kshs)
(Million Kshs) 2010/11 2011/12 2012/13
Current expenditure 674 890 928 911
Compensation to 357 430 450 470
employees
Use of goods and 317 460 478 441
services
Current transfers 0 0 0 0
Govt. Agencies
Other recurrent
Capital expenditure 1,433 3,526 3,866 3,958
Acquisition of non- 1,433 3,526 3,866 3,958
financial assets
Capital transfers to 0 0 0 0
Government
agencies
Other developments
Total 2,107 4,416 4,794 4,869

33
d) Ministry of Lands

Expenditure Approved Estimates Projected Estimates

Classification 2009/10 (Million Kshs)
(Million Kshs) 2010/11 2011/2012 2012/2013
Current Expenditure 1,675 3,976 4,175 4,433
Compensation to 1,160 1,172 1,179 1,238
Employees
Use of goods and 515 2,804 2,996 3,195
services
Capital Expenditure 860 8236 8952 9477
Acquisition of non 860 8,236 8,952 9,477
financial assets
Total 2,535 12,212 13,127 13,910

e) Ministry of Livestock Development

Expenditure Approved Estimates Projected Estimates

Classification 2009/10 (Million Kshs)
(Million Kshs) 2010/11 2011/2012 2012/2013
Current Expenditure 4,280 8,382 9,603 10,152
Compensation to 2,430 3,855 4,026 4,099
employees
Use of goods and 1,623 4,102 5,205 5,730
services
Current transfers to 226 425 373 322
govern agencies
other recurrent - - - -
Capital expenditure 389 3,808 3,670 4,124
Acquisition of non 389 3,808 3,670 4,124
financial assets
Capital transfers to - - - -
government agencies
Other development - - - -
Total 4,669 12,189 13,274 14,276

3.3 Analysis of Resource Requirement versus allocation by:

3.3.1 Recurrent

In the 2009/10 financial year the total requirement in recurrent budget was Kshs.
25,999 Million and only Kshs. 15,578 Million was allocated. This implies that the
sector received 60 percent of the total requirements. The Agriculture, fisheries,

34
cooperatives, lands and livestock sub-sector received 57 percent, 63 percent, 68
percent, 42 percent, and 62 percent respectively.

The total requirement in the 2010/11 financial year is Kshs. 24,181Million against
an allocation of Kshs. 12,826 which translates to a shortfall of Kshs. 11,355Million.

Sub Sector Approved Projected Estimates

Estimates (Million Kshs)
(Million Kshs)
2009/10 2010/11 2011/12 2012/13
Allo Req Allo Req Req
Agriculture 7,799 9,000 6,241 9,451 9,923
Cooperatives 923.0 1,375 1,062 1,464 1,526
Fisheries 901 1,448 575 1,554 1,476
Lands 1,675 3,976 1,620 4,175 4,433
Livestock 4,280 8,382 3,328 9,603 10,152
Total 15,578 24,181 12,826 26,247 27,510

3.3.2 Development

In the 2009/10 financial year the total requirement in development budget was
Kshs. 26,703 Million and only Kshs. 8,352 Million was allocated. This implies
that the sector received 31 percent of the total requirements. The Agriculture,
fisheries, cooperatives, lands and livestock sub sector received 54 percent, 65
percent, 26 percent, 10 percent, and 7 percent respectively.

The total requirement in the 2010/11 financial year is Kshs. 28,677 Million
against GoK allocation of Kshs. 4,179 Million which amounts to a shortfall of
Kshs. 24,498 Million.

Sub Sector Approved Projected Estimates

(Million Kshs) (Million Kshs)
2009/10 2010/11 2011/12 2012/13
Allo Req Allo Req Req
Agriculture 5,674 12,793 2,093 13,433 14,105
Cooperatives 223.0 872 387 930 986
Fisheries 1,206 2,968 311 3,240 3,393
Lands 860 8,236 736 8,952 9,476
Livestock 389 3,808 652 3,670 4,124
Total 8,352 28,677 4,179* 30,225 32,084
* Allocation for GoK only

3.3.3 Semi Autonomous Government Agencies

The total SAGA requirements in 2009/10 were Kshs. 1,400 Million and Kshs
1,670Million was allocated. In the 2010/11 the requirement is Kshs. 1,860 Million.

35
a) Ministry of Agriculture

Name of the SAGA Approved Projected Estimates

Estimates (Million Kshs)
(Million Kshs)
2009-10 2010-11 2009-10 2010-11
Allo Req Allo Req Req
Coffee Development 310 560 310 560 560
Fund
Cotton Development 180 180 180 200 200
Authority
Coconut 80 230 80 241 254
Development
Authority
Kenya Plant Health 448 468 448 491 516
Inspectorate Services
Pest Control Products 82 82 82 86 90
Board
Horticultural Crops 320 340 320 357 375
Development
Authority
Bukura Agricultural 160.2 200 160.2 200 200
College
Total 1580.2 2060 1580.2 2135 2195

b) Ministry of Cooperatives

Name of the SAGA Approved Projected Estimates

Estimates (Million Kshs)
(Million Kshs)
2009-10 2010-11 2009-10 2010-11
Allo Req Allo Req Req
Cooperative College 81 68 90 66 66
of Kenya
SACCO Societies 66 128.6 159.6 138.5 149.6
Regulatory Authority
(SASRA)
Total 147 196.6 249.6 204.5 215.6

c) Ministry of Livestock

Name of the SAGA Approved Projected Estimates

Estimates (Million Kshs)
(Million Kshs)
2009-10 2010-11 2009-10 2010-11
Allo Req Allo Req Req
Kenya Dairy Board 20.3 155 40.3 185 160

36
Kenya Meat 192 150 0 120 0
Commission
Kenya Veterinary 1.4 10 2.4 12 12
Board
Central Artificial 12.8 100 27.8 139.3 136.8
Insemination Station
Total 226.5 415 70.5 456.3 308.8

3.3.4 Programmes and Sub-Programmes

a) Ministry of Agriculture

Sub Programme Approved Projected Estimates

Estimates (Million Kshs)
(Million Kshs)
2009/10 2010/11 2011/12 2012/13
Allo Req Allo Req Req
Programme 1: Policy, Strategy and Management of Agriculture
Development/ Review 980 1,152 1,026 1209 1277
of Agricultural Policy,
Legal and Regulatory
Frameworks
Agricultural Planning 1,085 6,904 1,135 7252 7612
and Financial
Management
Sub-total 2,065 8,056 2,161 8,461 8,889
Programme 2: Crop Development and Management
Land & Crops 1,623 4,548 1,559 4,850 5,164
Development
Food Security 204 765 224 803 843
Initiatives (NMK)
Agriculture Extension 6,953 7,168 3,365 7,450 7,742
Services
Sub total 8,780 12,481 5,148 13,103 13,753
Programme 3: Agribusiness and Information Management
Agribusiness & Market 418 1,160 974 1,218 1,279
Development
Agriculture 51 97 51 101.85 107
Information and
Service
Sub total 469 1,257 1,025 1,320 1,386
Total 11,314 21,794 8,334 22,884 24,028

37
b) Ministry of Co-operative Development

Sub Programme Approved Projected Estimates

Estimates (Million Kshs)
(Million Kshs)
2009/10 2010/11 2011/12 2012/13
Allo Req Allo Req Req
Programme 1: Co-operative Development & Management
Cooperative 214 270 264 290 305
Governance and
Accountability
Cooperative Arbitration 25 24 21 24 25
Cooperative Extension 663 1,104 813 1,174 1,233
Services
Cooperative Education 113 61 59 61 64
and Training
New Cooperatives 36 147 35 156 163
Ventures
Management capacity 47 397 201 447 469
of key cooperative
organizations/institutio
ns
Sub total 1098 2,003 1,393 2,152 2,259
Programme 2: Cooperative Marketing
Commodity Value 48 241 56 241 253
Addition/Market
Access
Sub-total 48 241 56 241 253
Total 1,146 2,245 1,449 2,393 2,513

c) Fisheries Development

Sub Programme Approved Projected Estimates

Estimates (Million Kshs)
(Million Kshs)
2009/10 2010/11 2011/12 2012/13
Allo Req Allo Req Req
Programme: Fisheries Development
Aquaculture 1,461 2,482 519 2,534 2,692
Development
Development and 515 1,496 293 1,559 1,461
management of capture
fisheries
Fish Inspection and 131 438 223 701 716
Quality Assurance
Total 2,107 4,417 1,035 4,794 4,869

38
d) Lands

Sub Programme Approved Projected Estimates

Estimates (Million Kshs)
(Million Kshs)
2009/10 2010/11 2011/12 2012/13
Allo Req Allo Req Req
Programme: Land Policy and Planning
Land Reform 432 251 32 261 272
programme
Land Information 548 2,606 576 3,072 3,265
Management
Land Mapping and 614 1,420 415 1,510 1,658
Management of
National Spatial Data
Land Use Planning 243 2,135 227 2,252 2,375
Development Planning 307 414 444 431 448
and Project
Management
Land Settlement 391 5,386 662 5,602 5,892
programme
Total 2535 12,212 2,356 13,128 13,910

e) Livestock Development

Sub Programme Approved Projected Estimates

Estimates (Million Kshs)
(Million Kshs)
2009/10 2010/11 2011/12 2012/13
Allo Req Allo Req Req
Programme: Livestock Resources Management and Development
Livestock Diseases 882 5,259 1189.7 6,507 6,833
Management and
Control
Livestock Extension 794 1,803 864 1,564 1,597
and Capacity Building
Food Safety and 199 274 199 295 297
Animal Products
Development
Vector and Pest control 428 409 129.7 400 401
Livestock Production 403 1,103 342.3 886 885
and Management
Laboratory Services 265 327 270.8 338 348
Quality Assurance and
Bio-safety
Support to Livestock 620 703 157 897 930
Livelihoods and Early
Warning Systems
Livestock Products 291 663 59.5 753 884
Value addition and
marketing
Livestock Policy 581 1,218 216.3 1,273 1,715

39
Sub Programme Approved Projected Estimates
Estimates (Million Kshs)
(Million Kshs)
2009/10 2010/11 2011/12 2012/13
Allo Req Allo Req Req
Development and
Programmes
Management
Technical Capacity 206 431 550.4 361 386
building for Livestock
Industry
Total 4,669 12,190 3,979.6 13,274 14,276

3.3.5 Economic classification

a) Ministry of Agriculture

Expenditure Approved Projected Estimates

Classification Estimates (Million Kshs)
(Million Kshs)
2009/10 2010/11 2011/12 2012/13
Allo Req Allo Req Req
(1)Current expenditure 5,900 9,000 6,241 9,451 9,923
Compensation of 2,931 3,069 2,952 3,223 3,384
Employees
Use of goods and 1,647 2,487 1,967 2,612 2,742
services
Current transfers Govt. 1,322 3,444 1,322 3,616 3,797
agencies
Other recurrent -
(2)Capital expenditure 5,414 12,794 2,093 13,433 14,105
Acquisition of non- 5,104 10,944 1,783 11,533 12,205
financial assets
Capital transfers to 310 1,850 310 1,900 1,900
Government agencies
Other developments -
Total 11,314 21,794 8,334 22,884 24,028

b) Ministry of Cooperatives Development & Marketing

Expenditure Approved Projected Estimates

Classification Estimates (Million Kshs)
(Million Kshs)
2009/10 2010/11 2011/12 2012/13
Allo Req Allo Req Req
(1)Current expenditure 923 1,375 1,062 1,464 1,526
Compensation to 477.0 684 528 726 753
employees
Use of goods and 316.1 483 373 527 548
services

40
Expenditure Approved Projected Estimates
Classification Estimates (Million Kshs)
(Million Kshs)
2009/10 2010/11 2011/12 2012/13
Allo Req Allo Req Req
Grants and transfers 86.0 107.0 107 107.0 110
Other recurrent 43.9 101 54 104 115
(2)Capital expenditure 223 872 387.4 930 986
Grants and transfers 61.0 90 143 98 100
Acquisition of non- 85.1 353 157 373 403
financial assets
Other developments 76.9 429 88 459 483
Total 1,146 2,245 1,449 2,393 2,513

c) Ministry of Fisheries Development

Expenditure Approved Projected Estimates

Classification Estimates (Million Kshs)
(Million Kshs)
2009/10 2010/11 2011/12 2012/13
Allo Req Allo Req Req
(1)Current expenditure 674 890 694 928 911
Compensation of 357 430 372 450 470
Employees
Use of goods and 317 460 322 478 441
services
Current transfers Govt.
agencies
Other recurrent
(2)Capital expenditure 1433 3526 341 3866 3958
Acquisition of non- 1433 3526 341 3866 3958
financial assets
Capital transfers to
Government agencies
Other developments
Total 2,107 4,416 1,035 4,794 4,869

d) Ministry of Lands

Expenditure Approved Projected Estimates

Classification Estimates (Million Kshs)
(Million Kshs)
2009/10 2010/11 2011/12 2012/13
Allo Req Allo Req Req
(1)Current expenditure 1,675 3,976 1,620 4,175 4,433
Compensation to 1,160 1,443 1,230 1,479 1,238
employees
Use of goods and 515 2,533 390 2,696 3,195
services

41
Expenditure Approved Projected Estimates
Classification Estimates (Million Kshs)
(Million Kshs)
2009/10 2010/11 2011/12 2012/13
Allo Req Allo Req Req
Current transfers Govt.
agencies
(2)Capital expenditure 860 8236 736 8952 9477
Acquisition of non- 860 8,236 736 8,952 9,477
financial assets
Other developments
Total 2,535 12,212 2,356 13,127 13,910

e) Ministry of Livestock Development

Expenditure Approved Projected Estimates

Classification Estimates (Million Kshs)
(Million Kshs)
2009/10 2010/11 2011/12 2012/13
Allo Req Allo Req Req
(1)Current expenditure 4279 8381 3027.6 9604 10151
Compensation to 2,430 3,855 2430.5 4,026 4099
employees
Use of goods and 1,623 4102 526.8 5,205 5730
services
Current transfers Govt. 226 424 70.3 373 322
agencies
(2)Capital expenditure 389 3807 952 3670 4124
Acquisition of non- 389 3807 652 3,670 4124
financial assets
Other developments
Total 4,668 12,189 3,979.6 13,274 14,276

42
 CHAPTER FOUR:

CROSS-SECTOR LINKAGES

43
4.0 Introduction

The performance of the Agricultural Sector is dependent upon the linkages

between the various sub-sectors and strong linkages with other sectors.
Agricultural Sector Development Strategy (ASDS) provides the framework for
intra and inter sector linkages for attainment of the sector goals as identified in
the Vision 2030 and its first Medium Term Plan. The Agricultural Sector
Coordination Unit (ASCU) co-ordinates the implementation of the strategy

4.1 Intra-sector linkages

Sector ministries have intra sectoral linkages that create synergies. Sustainable
land management is critical for the development of the sector and indeed the
economy. Proper land use planning provides for a balance in the growth of crop,
livestock and fisheries sub sectors in ensuring food security and increased
earnings from marketed produce. Farmers’ organizations such as cooperatives
form an important part of the value chain with both backward and forward
linkages in inputs provision and marketing of farm produce.

4.2 Inter-sectoral linkages

The sector has strong and important linkages with other sectors of the economy
such as Environment, Water and Sanitation; Trade, Tourism and Industry;
Physical Infrastructure; Special Programmes; Governance, Justice, Law and
Order; and Human Resource Development among others.

a) Physical Infrastructure
Competitiveness in the agricultural value chains for farm produce and livestock
is significantly enhanced by good and supportive physical infrastructure. This
includes infrastructure that supports on-farm production, irrigation, energy,
telecommunications, and transportation, pre-harvest and post-harvest storage
and ensures efficient marketing and trading. Inadequate infrastructure thus
undermines agricultural productivity in the country. Investments in key
marketing infrastructure are therefore needed to support agricultural production
and marketing and improve the access of small farmers to markets.

b) Environment, Water and Sanitation

Sustainable environmental management is essential for maintenance of
agricultural productivity. Areas where strengthening of linkages is crucial is in
forest cover, efficient allocation of water resources among users, development of
affluent standards and in mitigating climate change. The existence of vegetation
cover helps in reducing soil erosion and increasing water availability. Harnessing
the country’s irrigation potential, coupled with efficient utilization of available
water resources for agriculture through innovative and appropriate water
harvesting technologies to improve food security.

44
c) Research, Innovation and Technology
Research and Technology is crucial in realizing increased productivity and
output in agriculture. The sector works closely with research institutions and
technology centres to boost production, marketing and value addition by
developing new innovations and technologies.

d) Trade, Tourism and Industry

Agricultural produce forms the bulk of the country’s exports, raw materials for
the manufacturing industry as well as food for the tourism industry. There is
therefore strong cross sectoral linkage in terms of market development,
processing and value addition.

e) Special Programmes
Agriculture and Rural Development sector works with Special Programmes
sector in ensuring food security and responding to disasters affecting the sector.
This is in terms of food production, maintenance of National Strategic Grain
Reserve; and administration of famine relief food.

f) Human Resource Development

Food and nutrition security and absence of disease are key to good health which
enhances social, economic growth and poverty reduction. Kenya is currently
faced with preventable diseases such as Malaria and tuberculosis which reduce
productivity of population. In addition, the challenge of HIV and Aids has
greatly affected the agricultural labour force. The improved literacy in
communities as part of human resource development will enhance agricultural
sector productivity.

g) National Security
Political violence, resource conflicts and cattle rustling have undermined
agriculture growth and development. For example the general decline in key
resources such as available arable land, water and pasture is a main contributor
to conflicts. The National Security has the responsibility to provide security of
individuals and their properties.

45
 CHAPTER FIVE

EMERGING ISSUES AND CHALLENGES

46
Emerging Issues and Challenges
The inadequate rainfall in various parts of the country, high costs of agricultural
inputs and energy coupled with disruptions due to the post election skirmishes,
resulted in the contraction of agriculture sector growth from 2.2% registered in
2007 to negative 5.4% in 2008.
The emerging issues and challenges for the sector are as follows;

a) Inadequate legal and policy frameworks: Currently there are numerous

pieces of legislation in the sector which are detrimental to agricultural
development. There are over 130 pieces of legislation; some overlap and
contradict each other while others are obsolete. This, coupled with policies that
have not been revised for a long time to incorporate current socio economic
environment, makes agricultural development a formidable task.

b) Low application of modern technology: Use of appropriate modern

science and technology in production is still limited and although Kenya has a
well-developed agricultural research infrastructure, there is lack of research-
extension-farmer linkages and demand-driven research. Dissemination of
research findings is not adequately undertaken.

c) Agricultural land fragmentation: This has limited the application of

modern technology in agricultural activities, thus reducing the output level.
Population increase and urban sprawl have continually reduced land available
for agricultural production.

d) Inadequate quality control systems: The marketing of crops, livestock and

fisheries products has faced challenges due to poor packaging, damage during
transportation, poor handling and quality control.

e) Inadequate market and marketing infrastructure: Marketing of

Agricultural produce continues to be adversely affected by lack of market
information and supportive infrastructure. The dependence on a few external
market outlets makes agricultural exports very vulnerable to changes in the
demand of agricultural products and unexpected non-trade barriers by foreign
markets.

f) Diseases and Pests: Pests and diseases results into pre-harvest and post-
harvest losses. In addition new and emerging diseases such as Avian Influenza,
Rift Valley fever continues to pose challenges in improving livestock
productivity and limiting external trade.

g) Low access to financial services and affordable credit: The current

financial system in the country has not been supportive of agricultural activities.
The high interest rate makes it impossible for most farmers and fishers to access
credit. The formal banking system is yet to develop credit facilities that

47
particularly suit agricultural and fishing activities especially for women since
they often lack land titles as collaterals.

h) Climate change and Environmental Degradation: Over the last three

decades the frequency of droughts and floods in the country increased, resulting
in crop failures and pasture shortage. There has been increased land degradation,
water pollution, which has greatly reduced the potential for crop, livestock and
fisheries productivity.

i) Poor infrastructure: Underdeveloped rural roads and other key physical

infrastructure have led to high transport costs for agricultural products to the
markets as well as farm inputs. This has continued to reduce competitiveness of
the Kenyan agricultural products in the international market. In addition, energy
sources in rural areas are expensive and often not available, reducing investment
in cold storage facilities, irrigation, and agro-processing.

j) High cost, adulteration and low application of key inputs: The cost of
agricultural inputs has escalated over the years making them unaffordable and
increasing the cost of production. This has resulted in low application and
adulteration of inputs, thus leading to declining quality and productivity in the
sector.

k) Poor governance in agricultural institutions: Well managed producer and

marketing organizations are vital to the performance of the sector. They provide
economies of scale in dealing with credit and marketing of inputs and outputs.
Poor management and governance has continued to be a major constraint to the
attainment of their full potential. The regulatory aspects of some of the
institutions have impeded their performance and needs to be addressed.

l) Staffing levels: The current staff numbers are not adequate to satisfy the
deployment needs and requirements at various operational levels. This is
particularly so with the increased number of administrative units (districts). This
is a main challenge in performance since deployment of staff needs to be done on
the basis of grades, skills and experience in relation to workload.

m) Inadequate financial resources /Disbursement of funds: The current level

of financial allocation to the sector is about 50% of its resource requirements. In
addition, there have been delays in donor funds disbursements affecting the
performance of the sector.

n) Transport policy: The restrictions imposed on the purchase of vehicles

and the creation of new administrative units has resulted into lack of transport
facilities constraining extension services delivery especially for female extension
workers.

48
o) Increasing incidence of HIV/AIDS, malaria and waterborne diseases: The
rapid spread of these diseases and the corresponding deaths have resulted in the
loss of productive agricultural personnel and base for sustained farming
knowledge and diversion of investible resources to the treatment of the diseases.
It is worth noting that women are disproportionately affected by HIV/AIDs
incidence which in turn affects agricultural production as they do the bulk of
agricultural work.

p) Inadequate monitoring and evaluation; The M and E functions are not

well linked to the budgetary process. Currently the production of annual and
medium term progress reports is not clearly synchronized within the budget
cycle. This has made it difficult to track implementation and performance.

q) Gender Inequality; The gender disparities in the sector has resulted in

marginalisation of women in decision making processes, ownership, control and
access to resources and full participation in commercial activities of the sector.

49
CHAPTER SIX

CONCLUSION

50
In Line with Vision 2030, the sector has developed ASDS as a medium term
framework for achieving sector objectives. Each subsector has developed
strategic plan to implement programmes and projects. During the review period
the sector allocated substantial resources to programmes that addressed the
country’s key priorities of food security and employment creation. The resource
envelope for the sector increased from Kshs 17,963.5 Million in 2006/07 to Kshs.
21,978.3 Million in 2008/09. While the resource allocation to the sector has
generally been increasing in absolute terms, the proportion of this allocation as a
percentage of the total national budget has averaged at a level of 3%. In contrast,
the sector’s direct contribution to the National GDP has consistently remained
over 20%. This increase while appreciated was not in line with the sector’s
resource requirements. The momentum gained in the sector’s growth in 2007
was dampened in 2008 by the post election disruptions early in 2008, inadequate
rainfall in most parts of the country and high input and energy prices.

During the last financial year, the major achievements include reforms in the
sector particularly land reforms; review and development of sector policies;
revitalization of the cooperative movements through review of the Cooperative
Societies Act; increased production and productivity of crops and livestock;
better animal health through reduced incidences of diseases; improved and
sustainable land use planning and management; improved coordination,
management and development of fisheries resources and value addition of
various sector commodities.

The major challenges encountered over the period have been inadequate
resource allocations to the sector that have resulted in low staffing levels in view
of the increased administrative units, weak legal, regulatory and policy
framework, inadequate marketing infrastructure, continued fragmentation of
agricultural land to uneconomical levels, poor transport infrastructure and low
access to financial services among others.

In order to address the above challenges, the sector ministries resource

requirements for the next MTEF period of is based on the first MTP (2008 -2012)
of Vision 2030, ASDS, ministerial strategic plans and other national policy
documents. The sector ministries focus will be on improving the legal and policy
framework for sector development, enhancing production and productivity,
control of diseases and pests; facilitating access to markets, affordable and
quality inputs as well as ensuring sustainable use of the natural resource base.
The sector’s resource requirement in 2010/11 is Kshs. 52,858 million reflecting an
increase of 117% over the current allocation of Kshs. 23,930 million. These
resources will be allocated to the sector’s programmes in efforts to increase food
security and employment creation.

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 CHAPTER SEVEN

RECOMMENDATIONS

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(i) There is need to substantially raise the allocations to enable the sector
ministries address fundamental challenges that have impeded the sector
from fully becoming innovative, modern and commercially oriented.

(ii) Fast Truck Sector implementation of Epromis and integrate it with

National Integrated Monitoring and Evaluations System (NIMES) for
monitoring and evaluation of the sectors programs/ projects.

(iii) The Ministry of roads should give priority to improvement of rural access
roads to facilitate market access for agricultural sector produce. In
addition, the other relevant ministries should ensure other physical infra
structural are in place for the growth of the sector.

(iv) There is need to achieve more gender equality in the sector, especially in
achieving more equal access of women to agricultural inputs and services,
such as credits, technology, fertilizers and extension services.

(v) There is need for improved security measures and land reforms to
promote development of the agricultural and pastoral activities.

(vi) Increased levels of investments in development of agro-processing, micro

enterprises as a way of building the small holder agriculture as a business
through timely availability of credit and farm inputs by promoting public
private partnerships.

(vii) Accelerate the review and development of the legal framework of various
sector programmes.

(viii) Improve inter-sectoral linkages to harmonise prioritisation of programs

and projects implementation.

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REFERENCES

1. Kenya Vision 2030 Document and the First Medium Term Plan 2008-2012,
Ministry of State for Planning, National Development and Vision 2030

2. Handbook of National Reporting: Indicators for the Vision 2030 First

Medium Term Plan, 2008-2012, Ministry of State for Planning, National
Development and Vision 2030

3. Sector MTP plans for Land reforms and Agriculture

4. Economic survey 2009, Ministry of State for Planning, National

Development and Vision 2030: KNBS

5. Ministerial Public Expenditure Reviews 2009 for Ministries of Agriculture;

Cooperative Development & Marketing; Fisheries Development; Lands;
and Livestock Development.

6. Agricultural Sector Development Strategy 2009-2020, Agriculture Sector

Coordination Unit

7. Ministerial Strategic Plans 2008-2012 for Ministries of Agriculture;

Cooperative Development & Marketing; Fisheries Development; Lands;
and Livestock Development.

8. Recurrent and Development Printed Estimates, Ministry of Finance

9. Ministerial Annual Accounts for the Sector Ministries

10. Budget call Circular No. 17/2009, Ministry of Finance

11. Kenya Economic Outlook 2009, KIPPRA

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