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Kenyan Government Allocates Ksh16.6 Billion for Infrastructure and Coffee Industry

Government allocates funds

The government has authorized Ksh16.6 billion for electricity transmission infrastructure projects. The funds are designated for the construction of new power lines, with the primary goal of improving the quality and reliability of the country’s power supply.The transmission lines to be constructed include the Narok-Bomet, Malindi-Weru, and Kabarnet-Rumuruti lines.


President William Ruto, leading the Cabinet, also approved a Supplementary Budget that includes a 10% reduction in ministries’ budgets. This reduction is part of a broader effort to streamline government spending, which includes significant cuts in areas like foreign travel expenses.

Additionally, the Cabinet has allocated Ksh4 billion for coffee farmers, on top of the earlier release of Ksh3 billion. This allocation will enable farmers to receive Ksh80 per kilogram of cherry as an advance payment, a significant increase from the current rate of Ksh20 per kilogram.

Read Also: Cabinet Approves New Taxes on Goods Imported that can be Made Locally

The government also plans to seek better markets for coffee by involving well-known coffee dealers, with the aim of revitalizing the Nairobi Coffee Exchange, which has been experiencing low prices and limited auction sales.

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This financial injection comes at a time when there are calls for the government to consider debt relief for coffee farmers, similar to the assistance provided to sugar millers. Kigumo MP Joseph Munyoro has urged the government to support coffee farmers in the same way, highlighting the need for sector-wide revitalization.


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