The government's budget allocation for fertiliser subsidies will increase from Rwf39 billion in 2025/26 to Rwf64 billion in the 2026/27 fiscal year, a rise of Rwf25 billion, or about 64 per cent, as authorities seek to cushion farmers from rising global fertiliser prices linked to the ongoing Middle East crisis. The increase was announced by Finance and Economic Planning Minister Yusuf Murangwa while presenting the proposed 2026/27 national budget to a joint sitting of the Chamber of Deputies and the Senate on June 11. ALSO READ: Priority projects driving proposed 2026/27 budget increase Total resources for the 2026/27 budget are projected at Rwf7,796.3 billion, up by Rwf844.2 billion from the revised 2025/26 budget of Rwf6,952.1 billion. During the budget debate, lawmakers expressed concern about inflationary pressures, particularly rising fuel prices and their impact on household welfare and agricultural production. Senator Frank Habineza asked what measures the government had put in place to shield vulnerable citizens from the effects of higher fuel costs. Fuel price changes have significant implications for citizens, particularly vulnerable households, through higher food and agricultural input prices, as well as increased transport costs for agricultural produce. What mitigation measures has the Government put in place to protect vulnerable citizens as the budget is implemented? he asked. Responding, Murangwa said the government had prioritised interventions aimed at boosting agricultural production, stabilising market prices, and expanding irrigation. We expect fertiliser prices to continue rising, and we do not want that burden to be passed on to the population. The government is increasing support for fertiliser use to boost agricultural productivity across the country, he said. ALSO READ: Where Rwanda’s Rwf7.8tn budget will go in 2026/27 He noted that strengthening agricultural productivity remains a key strategy for preventing food shortages and containing food price increases. Fertiliser subsidies have increased significantly, from Rwf39 billion in the previous budget to Rwf64 billion in the proposed budget. We have increased support so that fertiliser prices do not continue to rise, and we will also invest more in irrigation, he added. MP Murora Beth called for increased investment in agricultural research to develop fertilisers and seeds tailored to different soil types, noting that soil conditions vary widely across the country. Meanwhile, MP Théogène Munyangeyo raised concerns about gaps in Technical and Vocational Education and Training (TVET) programmes in agriculture and livestock farming in some districts. Murangwa reaffirmed the government's commitment to supporting the agriculture sector through increased investment. On research and development, he said funding would be channelled through institutions working on key crops such as maize, coffee, tea and potatoes, as well as studies on fertiliser and seed suitability. He added that the government is reviewing and expanding agriculture- and livestock-related TVET programmes to increase enrolment and better align skills development with sector needs. Other planned interventions include deploying more agronomists to high-potential production zones, strengthening extension services, and expanding collaboration with private veterinary practitioners. Other agriculture priorities The 2026/27 budget also prioritises increasing agricultural productivity through the provision of seeds, fertilisers and lime, boosting local seed production and multiplication for key crops, and expanding irrigation to strengthen climate resilience. Additional measures include constructing progressive and radical terraces to reduce soil erosion, strengthening extension services, developing post-harvest infrastructure such as warehouses, silos and dryers, expanding the National Strategic Grain Reserves for maize and beans, and promoting export crops. In the livestock sector, priorities include improving animal health and productivity through vaccination and artificial insemination, distributing small livestock, constructing and rehabilitating milk collection centres, and expanding livestock insurance schemes. Overall, the agriculture budget will rise from Rwf245.7 billion in 2025/26 to Rwf354.5 billion in 2026/27, a move expected to boost agricultural output. Speaking to The New Times earlier, Olivier Kamana, Permanent Secretary at the Ministry of Agriculture and Animal Resources, said the increased funding would help achieve the government's target of raising agricultural productivity by 50 per cent. Agricultural output grew by 7 per cent in 2025 and is projected to grow by 3.7 per cent in 2026.
