Agriculture anchors Kenya’s economy, directly accounting for about one third of gross domestic product. There’s a high correlation between Kenya’s economic growth rate and growth rate of agriculture sector. According to 2015 Economic Survey, Agriculture recorded 27.3% of the country’s GDP in 2014. This report is an indication that Agriculture in Kenya continues to hold the economic mantle ahead of other sectors.
Accelerating the country’s agriculture sector into a robust one is therefore a fundamental development target. To help achieve this, a slew of policy measures to increase crop production, enhance farmer incomes, keep input costs low and market development is critical as the country embarks on transforming agriculture. How the country increases production and enhances farm incomes on a sustainable basis is a fundamental question. To address this question, therefore, there are several components to keep in check: o... Read more
Private Sector Key in Kenya's Agricultural Transformation Agenda
Private sector can building and drive a strong agricultural ecosystem in Kenya that will boost inclusive growth and transform Kenya’s agricultural sector. The agricultural sector has high potential for employment generation, food, feed and nutrition security and poverty reduction. Unfortunately, these potentials have remained sub-optimal notwithstanding the numerous programmes/policies of the past governments. To meet the food needs of the expected 65million Kenyans by 2025, absorb millions of young people into workforce over the next decade, agriculture remains the most powerful catalysts to realize these aspirations.
Typically, investments in agriculture on the production side require high up front investments and long gestation periods. Recently I attended the first private sector consultative meeting to discuss Kenya’s agricultural transformation agenda convened by the ministry of Agriculture. Coming from the discuss... Read more
The president singled out agro-processing and value addition for our agricultural produce. “Kenyans need to know that at present 70% of the value of our export produce goes to processors abroad” said the president. He continued to say that small and medium-size enterprises (SMEs) play a crucial role in our economy. He also acknowledged that, the bulk of employment comes from SMEs, which are an important contributor to our gross domestic product (GDP). He underscored with a rider that “my plan is to create an additional 1,000 SMEs focused on manufacturing”. With the president acknowledging that ‘big four requires brave steps’ policy makers and entrepreneurs should start discussions on strategies for strengthening the competitiven... Read more
To address this concern it is important for companies in agribusiness sector to come up with inclusive business models that deliver more value at less cost for more citizens. As an agribusiness consultant I have traversed Kenya and have witnessed how private sector companies are striving to support Kenya’s quest for “inclusive growth.” Inclusive growth has become the economic development mantra globally recently. For starters, to achieve an inclusive business ecosystem is not easy. The big question then is how business models and... Read more
It is imperative to note that agricultural sector has a multiplier effect on socio-economic and industrial fabric because of the multifunctional nature of agriculture. Judging from... Read more