Don't cut the hand that feeds us: Farmers sound alarm on tax bill

When Kenya’s Finance Bill 2025 proposals landed in Parliament, farmers across the country paid attention — not because they were looking for favours, but because the last few years have made it clear: if agriculture is not financed right, we all pay the price.

The Bill, which suggests new taxes and adjustments to existing ones, has ="https://www.standardmedia.co.ke/smart-harvest/article/2001518578/farmers-demand-sector-reforms-warn-against-budget-proposals">rattled the farming sector<. From the maize-growing plains of Trans Nzoia to mango farmers in Makueni, the message from many is simple: farming is already hard and expensive — don’t make it worse.

The Kenya National Farmers’ Federation (Kenaff), a leading lobby, was among the first to raise the red flag. They warned that taxing farm inputs, machinery, and animal feeds would be catastrophic, especially for ="https://www.standardmedia.co.ke/business/business/article/2001518662/proposed-taxes-to-hit-smallholder-farmers-hard-lobby-warns">smallholder farmers< who already operate on razor-thin margins.

This move risks increasing the cost of production at a time when farmers are already grappling with climate shocks, declining yields, and rising input prices,” said Prof Kaburu M’Ribu, Kenaff national chairman.

And it’s not just Kenaff. Several county-level farmers’ groups and cooperatives have come out strongly, urging Parliament to revisit the proposals and hold meaningful consultations.

In places like Machakos and Nyandarua, where unpredictable weather patterns are already making farming unpredictable, farmers say they feel ="https://www.standardmedia.co.ke/business/business/article/2001512052/farmers-cry-foul-over-increase-in-export-import-taxes">increasingly squeezed< — between climate change, input costs, and now, new tax measures.

We are not asking for handouts. We just want to farm without being punished by taxes and ignored by banks. If the government wants food on every table, they must invest in the people who grow it,” said Jane Mwikali, mango farmer from Makueni County.

On Tuesday, June 4, President William Ruto met with governors at State House Nairobi to review key national and county development projects. Agriculture was top on the agenda.

The President reiterated the government’s commitment to agricultural transformation, calling for better coordination between national and county governments, especially on extension services, irrigation projects, and value addition.

“We will deepen our agricultural reforms by harmonising operations within the Ministry of Agriculture and leveraging our robust cooperative ecosystem to increase productivity, improve prices, and put more money in farmers’ pockets.”— President William Ruto

It was a positive signal — at least politically — that the government recognises agriculture as central to the country’s economic health. But away from Nairobi boardrooms, farmers still wait to feel this support where it matters most: at the farm gate.

In the proposed budget, Sh48.25 billion has been allocated to the State Department for Agriculture, while Livestock Development is set to receive Sh9.99 billion. This marks a modest increase of Sh1.18 billion from last year’s total allocation of Sh57.06 billion.

A day before that State House meeting, Nairobi played host to the Data4Soil Summit, where researchers, scientists, agri-tech entrepreneurs and policymakers gathered to talk about something most people overlook — soil.

="https://www.standardmedia.co.ke/farmkenya/article/2001496792/how-finance-bill-will-deal-a-huge-blow-to-farmers">Kenya’s soils<, especially in productive zones like Uasin Gishu, Meru and parts of Western, are in trouble. Experts say over 60 percent of agricultural soils are now degraded. The impact? Reduced yields, more money spent on fertilizers, and long-term food insecurity.

The summit brought to light just how disconnected farmers are from soil knowledge — and how financing is at the heart of the problem. Innovations in digital soil testing, mapping and climate-smart solutions are already here. But most smallholder farmers can’t afford them.

They’re out of reach, not because they don’t work, but because there’s no financing model to support widespread adoption.

“Innovators in the agricultural sector need to take a bird’s-eye view of the entire ecosystem — only then can they make a compelling case to financiers, policymakers, and regulators that their solutions make commercial sense.” This is according to Elizabeth Kibaki, senior development specialist at the World Bank speaking at the summit.

The call at Data4Soil was clear: if Kenya is serious about reversing soil degradation, we must invest — not just in data, but in farmers’ ability to use that data.

Then came the FINAS Summit — the Financing Agri-Food Systems Sustainably conference held in Nairobi in late May. This one brought together government representatives, banks, development partners, researchers and innovators to ask the hard question: Why is agriculture still underfunded, even though it feeds the nation?

One of the standout moments was when Kenya’s Agriculture CS Mutahi Kagwe pointed out that only 3 per cent of the country’s commercial bank loans go into agriculture. Yet, the sector supports more than 70 percent  of rural livelihoods and contributes close to a third of GDP.

What came out clearly is that most financial institutions still see agriculture as a high-risk venture — unpredictable weather, pests, price shocks.

But what many miss is the growing number of tech-based tools that are de-risking farming. From mobile-based insurance and digital credit scoring to bundled services that link farmers with buyers and offer climate advice — the future is already here.