The Kenyan government announced on Saturday that it will spend 1.7 billion shillings ($27.6 million) to subsidize farmers who were affected by the post-election violence that adversely affected the agricultural sector.
Speaking in Nairobi, Agriculture Minister William Ruto said the treasury had agreed to give the funds to the National Cereals and Produce Board to purchase farm inputs, mainly seeds and fertilizer that will be distributed for free.
He said the funds were part of a government program to subsidize the sector. Agriculture contributes 25% to the gross domestic product and at the same time accounts for around 60% of foreign earnings.
It grew by 6% in 2007 but expert’s project that the growth in 2008 would drop marginally to between 4.5% and 5.0%, because of the post-election violence.
Source African Press Agency
