Sh9.5bn set aside for irrigation

Irrigation has been put in focus in this year’s Budget to improve food supply.

Persistent droughts have created food shortage and this year, poor maize harvests are expected in the Rift Valley region, which is the country’s bread basket.

National Treasury Cabinet Secretary Henry Rotich allocated Sh9.5 billion for irrigation. Of this, Sh3.5 billion will go to Galana-Kulalu irrigation scheme, which was revived in January.

WATER RESERVIORS

Mr Rotich said the money will be used to put at least a million more acres under irrigation in Tana River and Kilifi counties.

Another Sh4.1 billion will be used to build dams and water pans for irrigation and domestic use. These reservoirs will be in arid and semi-arid areas where farming is difficult despite fertile soils.

The Treasury also allocated Sh2.7 billion for strategic grain reserves.

Mr Rotich said the aim is to transform agriculture and create jobs. Agriculture is the country’s economic backbone and was allocated Sh29.3 billion.

The minister said they intend to work with other countries and financial institutions to introduce an agribusiness fund for farmers.

Farmers will borrow from the fund to improve production.

Agribusiness processing industries, the Cabinet Secretary said, would be encouraged to spur agriculture growth.

He said the government will establish industrial clusters along the standard gauge railway line being constructed from Lamu to Nairobi.

FARM INPUTS SUBSIDY

The industrial clusters will boost agriculture.

Mr Rotich also said the government would continue subsidising smallholder farmers.

What has been ailing agriculture is failure by farmers to access farm inputs, especially fertiliser, due to high prices.

However, the subsidy has not been effective because it reaches farms late.

Inadequate supply of certified seeds has also been hurting agriculture. In 2013, maize harvests fell to 38.9 million bags from 39.7 million bags in 2012 according to this year’s economic survey.

Subsidised farm inputs boosted maize production in Malawi after being introduced by President Bingu wa Mutharika.

Smallholder farmers got subsidy vouchers to buy fertiliser and seeds. As a result, Malawi produced surplus grains for export.

This has now changed due to unpredictable weather.