Despite global shocks and crises, Kenya achieved an impressive annual average GDP growth rate of 4.6 percent between 2018 and 2022, surpassing both sub-Saharan Africa and global averages. The Government of Kenya also reduced poverty significantly from 46.8 percent in 2006 to 36 percent in 2021. However, structural challenges in the food system remain. Despite increasing its agricultural budget allocation, total investment still falls short of the Malabo Declaration’s 10 percent commitment, and severe food insecurity has worsened, rising from 23 percent in 2018 to 28 percent in 2021. Additionally, Kenya is highly vulnerable to climate change, ranking 152 out of 181 on the ND-GAIN index.
To address these challenges, the Government of Kenya developed a national pathway to sustainable food systems in 2021, complemented by a five-year action plan in December 2023. A key objective of the action plan is piloting the Financial Flows to Food Systems (3FS) tool, co-developed by IFAD and the World Bank, to measure financial flows to the food system and allow for investment prioritization.
From December 2023 to March 2024, the Kenyan Government piloted the 3FS tool, assessing financial trends from 2018/19 to 2021/22. The Ministry of Agriculture and Livestock Development led this initiative, involving 20 ministries and agencies. The analysis focused on domestic public expenditures and international development financial flows, sourced from national budgets and the Organisation for Economic Co-operation and Development (OECD) Creditor Reporting System.
Key findings revealed that Kenya's domestic spending on food systems totalled USD 6.5 billion over four years, peaking during the COVID-19 pandemic. International development aid, primarily from official development assistance (ODA), remained stable, while other official flows (OOF) saw a significant increase. Philanthropic aid, however, decreased by 27 percent.
