The government is planning measures to cushion farmers after inadequate rainfall disrupted agricultural production in several parts of the country.

President William Ruto said the government would work towards reducing the cost of fertiliser and seeds, following widespread concerns over crop failures caused by poor rains. He made the announcement during a church service in Moiben, Uasin Gishu County, on August 2. 

The intervention comes at a critical time for Kenya's agricultural sector, where many farmers continue to rely heavily on rainfall.

Poor rains can reduce harvests, increase food prices and place additional pressure on household incomes.

The government is also looking to expand investment in water infrastructure as part of a longer-term response to climate-related shocks.

According to the announcement, the government plans to construct 50 mega dams, 200 medium-sized dams and 1,000 micro dams to increase water availability for agriculture and other economic activities. 

Impact on farmers and food prices

Reduced agricultural output can have an impact beyond farms. Lower production of maize, vegetables and other food crops can increase the prices paid by consumers while also raising input and operating costs for food processors, retailers and hospitality businesses.

For farmers, cheaper inputs could help reduce production costs ahead of the next planting season.

However, the effectiveness of the intervention will depend on the availability and timely distribution of inputs, as well as whether the planned water projects can improve agricultural resilience over the longer term.

The government is expected to face pressure to ensure that support reaches small-scale farmers, who remain particularly vulnerable to changes in rainfall patterns.

For businesses operating across Kenya's agricultural value chain, including agro-dealers, food processors, transporters and retailers, the performance of the next planting and harvesting seasons will remain an important factor in determining costs and supply.

The latest government measures therefore form part of a wider effort to protect food production while limiting the economic consequences of unreliable rainfall.