Agriculture Sector is the mainstay of the economy. As of 2013, the sector contributes 25% to GDP directly, forms 65% of Kenya's total exports and provides 18% of formal employment.
Agricultural sector is not only the driver of Kenya's economy but also the means of livelihood for the majority of Kenyan people. The sector comprises of crop production (industrial & food crops), horticulture, livestock, fisheries and forestry. Production of crops and horticulture contributes 76.5% of Agriculture GDP followed by livestock production at 4.9%.
Fishing and forestry contribute 05& and 0.7% of the total agriculture GDP respectively. Overall, the Agriculture output grew by 2.9% in 2013 as a result of depressed rainfall reducing production of maize, beans and sugarcane. Kenya's Agricultural exports are classified into traditional (tea and coffee) and non-traditional exports (horticulture – which increased to 213.8 thousand tonnes in 2013 from 205.7 thousand tonnes in 2012).
There are joint venture opportunities for foreign investors seeking local counterparts, Sugar and Cotton processing factories have been earmarked by the government for privatization. Others include export-oriented agri-business, horticulture and processing of oil crops and investment in large scale irrigation schemes.
Kenya's competitive advantage as an investment location for agriculture is supported by various investor friendly factors that include:
- Availability of a well-established export market for agricultural products
- Availability of multinationals in the sector
- Availability of affordable labour and agricultural land
- Bilateral agreements that favour local production.
Agriculture is Kenya's key sector. Opportunities exist in;
- Value addition processing. e.g. Coffee, Tea and Fruits
- Floriculture and Horticulture
- Marketing infrastructure – wholesale and export; transportation from farms to markets; cold storage within or near airport for fresh produce
- Development of Multipurpose dams
- Irrigated Agriculture Program for industrial crops such as cotton, sisal, tea, nuts, fruits and vegetables and coffee among others
- Fisheries development and management
- Establishment of Disease free zones
- Development of abattoirs
- Large scale animal production for milk and meat
- For more information on these projects, please visit the website
- State offers farmers Sh2,700 per bag of maize delivered to cereals board
- Thousands of farm machines to be imported soon
- Documents form Pyrethrum Stakeholders Workshop organized by the Ministry of Agriculture/World Bank that took place on 26 June 2014
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