National Agriculture Summit launch

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REPUBLIC OF KENYA MINISTRY OF AGRICULTURE, LIVESTOCK, FISHERIES AND COOPERATIVES
CABINET SECRETARY BRIEF DURING NATIONAL AGRICULTURE SUMMIT 
DATE: 26TH FEBRUARY 2020
VENUE: SAFARI PARK HOTEL 


 1.0. Background Agriculture is the bedrock of the country’s development, and key to creating equitable and sustainable growth for our people. Agricultural transformation is critical to a growing economy such as ours. No large country in the world has ever achieved significant growth without modernizing its agricultural sector. It is therefore imperative that we urgently transform and modernize our agricultural sector, as a strategy of reducing the cost of food, alleviation of poverty and delivery on the goal of 100% food and nutrition security. 
The Government has formulated the Agricultural Sector Transformation and Growth Strategy (ASTGS): 2019-2029, to transform the country’s agricultural sector and make it a regional powerhouse. This strategy is anchored in the belief that food security requires a vibrant, commercial and modern agricultural sector that sustainably supports Kenya’s own economic development, national priorities, commitments to the Malabo Declaration under the Comprehensive Africa Agriculture Development Programme (CAADP) and the United Nations Sustainable Development Goals (SDGs). 


The ASTGS has built on lessons learned from prior strategies, it takes an evidence-based approach, with a focus on counties as the centres for implementation and delivery. The main approach is to address the effects of climate change and the challenges that constrain agricultural output, productivity and natural resource management in Kenya today. Sustaining this evidence-based foundation will require data for rigorous performance management, as well as the research and innovation to propel decision making and technologies that are required for the future. The Strategy has shifted the burden of action to the county governments, the private sector, industry players, entrepreneurs, development partners and civil society to help us in driving this agenda.

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2.0. The Strategy:The ASTGS prioritizes three anchors to drive Kenya’s 10-year transformation, underpinned by Nine big ideas (“flagships”) in the context of devolution, with specific targets: Anchor 1: Increase small-scale farmer, pastoralist and fisherfolk incomesFlagship 1. Target ~1million farmers in ~40 zones (initially) producing crops, livestock and fish served by ~1000 farmer-facing SMEs that provide inputs, equipment, processing and post-harvest storage and aggregation.Flagship 2. Shift nationwide subsidy programme focus to empower ~1.4 million registered high-needs farmers to access a wide range of inputs (seeds, crop protection, fertilizer, equipment) from a variety of private and public providers, using e-vouchers with digital service delivery. Anchor 2: Increase agricultural output and value-add Flagship 3. Establish ~6 large-scale agro- and food-processing hubs across the country through a rapid Public-Private-Partnership (PPP) process (i.e., one-stop shop) targeting both domestic and export markets Flagship 4. Unlock ~50 large-scale private farms (>2,500 acres each) with ~150,000 acres under sustainable irrigation from existing projects (e.g., rehabilitate dams) with government-provided infrastructure (e.g., power, roads) and protected land ownership  Anchor 3: Boost household food resilienceFlagship 5. Restructure governance and operations of the Strategic Food Reserve (SFR) to better serve ~4 million vulnerable Kenyans through:i. Reserves optimized for emergency responses only;ii. Buy/sell guidelines published with pre-determined emergency release triggers for stocks and cash; iii. Private sector warehousing; iv. Price stability managed through Treasury (i.e., minimum price controls and cash transfers)Flagship 6. Boost food resilience of ~1.3 million farming, pastoralist and fishing households in arid and semi-arid lands (ASALs) through community-driven design of interventions, and more active economic bloc coordination of development partner and private sector resources.
EnablersFlagship 7. Launch three knowledge and skills programmes: i. Field-and-forum curricula for ~200 national and county government leaders who will drive the strategy; ii. Skill-building for public and private sector flagship implementers (including agri-business skills for ~1,000 farmer-facing SMEs); iii. Management/technical training for ~3,000 youth-led and digitally-enabled government extension agentsFlagship 8. Strengthen research and innovation as launch priority digital and data use cases to better drive decision making and performance management. First wave of use cases includes: i. Digital subsidy delivery programmes; ii. Production forecasting and digital performance monitoring of small-scale farmers and SMEs;iii. Forecasting and monitoring SFR buy/sell needs.Flagship 9. Actively monitor two key food system risks: i. Sustainable and climate-smart natural resource management including health of water basins, soil quality and land use; ii. Rapid-response crisis management for pests and diseases, climate and global price shocks.
The MoALF&C’ will formulate, implement and monitor agricultural policy and regulation, while developing and coordinating programmes to support crops development, livestock, fisheries, cooperatives and research that are critical to delivering the ASTGS. Furthermore, the MoALF&C Cabinet Secretary will ultimately be responsible for delivering the targets for the sector.
The Agricultural Transformation Office (ATO) will support inter-ministerial coordination, performance management and mutual accountability across the sector, and should play its role in close collaboration with all the stakeholders in the agricultural sector. The ATO Director will work closely with the Joint Agricultural Sector Steering Committee (JASSCOM) and the Council of Governors as the latter bodies support the counties to domesticate the ASTGS. This domestication is critical not only for ongoing County Integrated Development Plans (CIDPs), but also as the counties draft their own 10-year Agriculture Sector Development Plans (ASDPs).
The ASTGS is expected to cost up to KES 440 billion over five years:  ~KES 230 billion in agriculture-specific costs,  ~KES 210 billion in agriculture-supportive spend including power, roads and price stability within National Treasury. With the right approach, up to 80% of costs can be financed through public private partnerships (PPPs), particularly in the agro-processing and arable land flagships. Therefore, Government of Kenya (GoK) and development partners would need to finance 20% of cost which includes subsidies, extension and the enablers. To meet this obligation, the GoK needs to raise an additional KES 8-10 billion per year to cover their financing obligations to the strategy (~30% increase in current disbursed budgets).


3.0. Initiatives undertaken by the MoALF&C towards the Big Four (Food Security)The agricultural sector in this country is dominated by small holder farmers who contribute about 80% of the agricultural production which is mainly subsistence, rain-fed with low mechanization levels. Agriculture is faced with myriad of challenges which include: Limited access to affordable high quality inputs and equipment;  Inadequate critical agricultural infrastructure support and agriculture financing;  Low exploitation of irrigation potential,  Inadequate research and extension support systems,  Huge post-harvest losses;  Low levels of agro-processing; Limited local and export market due to poor marketing systems.  Climate change risks resulting to poor rainfall patterns, deprived water resources and increased incidences of animal and plant pests and diseases.The Ministry has formulated the following aspirations in order to achieve the Big Four (food and nutrition Security Pillar) Key Outcomes by 2022: i. Reduce the cost of food as a percentage of income from 45% to 25%; ii. Halve the number of food insecure Kenyans from 10 % to 5%; reduce chronic malnutrition among children under 5 years from 26% to 19%; iii. Increase Agriculture contribution to GDP by 48%; iv. Support 1,000 Production SMEs and 600,000 direct and indirect jobs; v. Increase average income of farmers, fishermen and pastoralists.The key enterprises under the Food and Nutrition Security Pillar are;• Food Crops (Maize, Rice, Irish Potato)• Industrial crops (Coffee, Tea, Cotton, Pyrethrum)• Oil & Nut Crops (Macadamia, Cashewnuts, Coconuts) • Fruits (Mango & Avocado)• Meat (Beef, Poultry, Piggery)• Dairy value chain• Honey, Hides and skins• Fisheries (Aquaculture, Marine)
The areas implementation for the Big 4 Agenda are;
i. Approval of Agriculture and National Livestock policies.ii. Carrying out farmer registration and digitization of agricultural data for decision making iii. Operationalization of the e-voucher system for access to agricultural inputs for 1 million small holder farmers; iv. Creation of medium and large scale farms and investments in agro-processing hubs to create markets for agricultural produce. v. Improve on performance of sector based parastatals, restructuring and privatization of non-performing ones. vi. Developing value chain suitability maps for all regions.vii. seeking for tax incentives on inputs and equipment to reduce production costs; viii. Restructuring Strategic Food Reserve (SFR) and the NCPB to serve the four million food insecure households in times of crisis.ix. Operationalize the warehouse receipt system to improve on marketing systems x. Lifting the ban on genetically engineered crops.xi. Adopting of climate smart and conservation agriculture, xii. Building resilience through irrigation and water harvesting, by construction of 8,000 water pans and rehabilitation of 32 small dams to increase storage capacity by 10 million m3 of water putting additional 10,000 acres under irrigation.xiii. Strengthen farmer cooperatives to enhance value chain development.xiv. Other livestock interventions will include establishing quarantine facilities, xv. Mandatory vaccinations to prevent trans-boundary diseases for enhanced meat production.xvi. Promote milk marketing, value addition and processing infrastructure and promotion of school milk programmes. xvii. Enhance the quality of hides and skins through breeding and improved handling at husbandry and slaughter-house level. xviii. The fisheries subsector is building capacity for domestic industrial and semi-industrial fisheries through joint ventures, operationalization of Liwatoni Fisheries Complex, develop and refurbish fish landing sites, construct fish markets and mini processing factories, construct the Mariculture centre;xix. Develop high performance brood-stock for seed multiplication; enhance fish stocks in inland waters through restocking; xx. Protect fish breeding areas and critical habitats; develop fish port infrastructure and accompanying facilities in Lamu, Malindi and Shimoni; xxi. Construct a Marine Aquarium for learning, research and tourism in Mombasa, Kisumu and Lake Turkana and establish an Institute of Blue Economy and oceanic science.


4.0.   Reforms being undertaken by Government to Reform the Agricultural Sector:

To support the transformation process and accelerate the journey towards 100% food and nutrition security, the Government is implementing the following reformsa). Reforming the inputs subsidy program. The Government is implementing a new input subsidy program (e-voucher system) for proper targeting in Maize, Rice, Irish potato and Coffee. 
b). SFR/NCPB Reforms Government action in the Maize sector has created a number of farmer entitlements that need to be restructured for stability. Under proposed reforms, SFR will focus on digital food balance sheet and use the Warehouse Receipting System. 
c). Reform Kenya Meat Commission: Modernization of the slaughter houses and restructuring to allow for Strategic Partnership.
d). Support the Animal Feed Industry with affordable quality feeds: Introduce soya Beans and yellow maize for the feed industry to reduce pressure on white maize
e). Shift To SMEs And Large Farms: The ministry is working with AGRA, International Finance Corporation & the Presidential SME Advisory Unit to implement flagships 1 & 4 of the ASTGS (SMES & large scale commercialization)
f). Increase in use of genetics/science/data: Partnership with Universities, CGIAR Centres, KAGRIC and Seed Companies to introduce superior genetics and phase out varieties which have undergone genetic erosion, commercialize Bt cotton and increase access to embryo transfer & AI with sexed semen.  
g). Youth in Agriculture : Programs aimed at providing incentives for young graduates in Crops, Livestock and Fisheries through Capacity Building on entrepreneurship, business incubation, funding and business linkages. 
h). Digitization- Digitize Agriculture Data to support decision making: Achievements:• Digital food balance sheet developed/operationalized • ICT capacity building partnership with Microsoft Foundation • Support  by World Bank through Kenya Climate Smart Agriculture Project on big data and establishment of the Kenya Agricultural Observatory Platform for dissemination of weather  information. 
I). Development of policies, strategies & regulations: • National coffee policy & revitalization action plan• Crops (Coffee) general regulations, 2019• Coffee (cherry advance) regulations • Warehouse receipting system regulations• Livestock identification & traceability systems regulations• Flour blending regulations • Miraa regulations • Dairy regulations • NARS Policy
j). Ministerial Culture Shift: Retirement at the Ministry presents a threat in losing the knowledge base but also an opportunity for cultural change and rebranding. Reforms will strengthen the MoALF&C and its coordination with Counties and the Private Sector. 


5.0.  How is the Ministry Organized for effective engagement with the Key Stakeholders?For effective engagement with stakeholders, the ministry has established the following coordinating institutions;
a) Agriculture Transformation Office(ATO) ATO is the delivery unit/secretariat for the ASTGS. Key functions include coordination, analytical/ policy support and sectoral M&E.
b) Joint Agriculture Consultation and Cooperation Mechanism (JASCCM) Structure for vertical and horizontal Coordination in the sector linked to the COG Secretariat, office of the Chief Administrative Secretary, Agriculture Transformation Office (ATO) office in the Ministry in the MoALF&C and County Agriculture Steering Committees
C) Roundtable engagements with private sector:  The ministry organizes periodic roundtable engagements with KEPSA on ASTGS & Big 4 implementation.

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