Devolution signals boon for agriculture

Devolution promises improved financing and specialised services to farmers as the government lays ground for its long-term economic targets.

Agricultural potential is poised to become the second most important factor —after population size— in the central government’s allocation of national resources to counties.

“In an agro-based country such as ours, availability of land and water are the most important factors of production that will guide central government in allocating resources needed for the achievement of Vision 2030,” said Dr Stephen Mbithi, CEO, Fresh Producers Association of Kenya.

Agriculture accounts for one quarter of the country’s total wealth, making it the single largest segment of the country’s economy at the moment.

But a combination of drought, marketing bottlenecks and poor financing has led to the sector’s annual decline, dropping to negative 2.6 per cent in 2009.

“This rate of decline calls for increased investment in irrigation, processing and marketing facilities in counties with high agricultural potential as the government turns to region-specific strategies for development,” said Mr David Nyameino, economist and CEO of the Cereal Growers Association.

Parliament is currently working on the finer details of devolution but players are already upbeat that most agricultural projects will enjoy both national and county financing.

Among the areas to receive national funding are research, policy formulation and regulation which are centralised under bodies like the Kenya Agricultural Research Institute, the Kenya Marine and Fisheries Institute, and the Kenya Plant Health Inspectorate Service.

“These areas of national interest may remain centralised since the government is devolving only 15 to 20 per cent of the economy but it is still a good news because in addition , we expect each county in agricultural areas to have its own budget for the sector,” said Dr Mbithi.

But counties are expected to pay the national institution to do researches that are specific to their locations.

Going by the 2010/11 budgetary estimates, agricultural sector ministries are special vehicles for channelling huge funds to the rural areas.

Of a total of Sh27.5 billion that Treasury allocated to agriculture, livestock, fisheries and co-operative ministries, most of the money targeted rural programmes.

Agricultural field extension and research absorbed Sh7.2 billion, livestock development and veterinary services consumed Sh6.1 billion while Sh4.2 billion was directed to development of fishery resources.

“Under some circumstances, the devolved system will simply mean shifting control of these budgets from the hands of agriculture ministry PS to the hands of the governor of a country,” said Dr John Omiti, head of productive sector division at the Kenya Institute for Public Policy Research and Analysis.

The government has started reviewing economic clusters that will be given special attention to help achieve vision 2030.