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CS Kagwe Unveils Ksh1.47 Trillion Plan to Transform Kenyan Agriculture

Nairobi Wire BusinessEditor
June 18, 2026 | 12:02 PM2 min read
Originally published on Nairobi Wire Business
CS Kagwe Unveils Ksh1.47 Trillion Plan to Transform Kenyan Agriculture

Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe on Thursday, June 17, unveiled a sweeping Ksh1.47 trillion (USD11.4 billion) plan to overhaul Kenya’s agricultural sector and create millions of jobs by 2030.

Kagwe, who was recently named as the best-performing minister in President William Ruto’s Cabinet, launched the Kenya AgriConnect Compact in Nairobi, a five-year strategy designed to transform agriculture from subsistence farming into a modern, technology-driven commercial industry.

“The Agriconnect Compact positions agriculture not as a subsistence sector, but as a modern, technology-enabled, climate-smart, and investment-ready engine for inclusive economic transformation,” CS Kagwe said.

At the heart of the initiative is a target of 2.482 million new and upgraded jobs. The plan aims to draw in Kenya’s youth into agro-processing, logistics, digital supply chains, and agribusiness management roles.

To streamline the initiative, the government plans to inject KSh 491.72 billion (USD 3.8 billion) in public funds. The funding structure is intended to lower sector risk and unlock an additional KSh 984 billion (USD 7.6 billion) in private investment.

Public-Private Partnerships (PPPs), blended finance, and credit guarantees will also play central roles. The government says these measures will make agricultural lending more attractive to banks and private investors, who have often avoided the sector.

Beyond financing, the plan targets a 50% reduction in costly imports of staples such as rice and maize. It also seeks to boost high-value exports to global markets by 60%.

Digital tools will underpin much of the delivery, including the rollout of digital extension services, agritech platforms for market traceability, and advanced processing technologies meant to cut post-harvest losses that farmers report cost them billions of shillings each year.

The government will also overhaul market systems by upgrading infrastructure, launching digital marketplaces, and strengthening structured trading arrangements. The aim is to prevent farmers from being trapped in exploitative, fragmented value chains shaped by industry cartels.

Under the plan, key local value chains, such as dairy, edible oils, and horticulture, will receive priority for private capital.

Apart from the National Treasury, the initiative has strong backing from major international development partners, including the World Bank, the International Fund for Agricultural Development (IFAD), the African Development Bank (AfDB), the Gates Foundation, and Alliance for a Green Revolution in Africa (AGRA).

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