Kenya’s agricultural sector plays a crucial role in the nation’s economy, contributing about 33 per cent to the GDP and employing over 40 per cent of the population, as reported by the Kenya National Bureau of Statistics (KNBS). The export landscape has notably diversified beyond traditional crops like coffee and tea to encompass high-value products such as avocados, berries, and flowers. The Horticultural Crops Directorate (HCD) highlighted a significant increase in fruit export earnings in 2023, reaching KES 32.37 billion from KES 19.7 billion in 2022, driven by rising global demand and strategic market access expansion.
However, the sector faces hurdles including market access, climate change, and infrastructural deficiencies. Non-tariff entry barriers related to food safety standards pose significant challenges for local farmers lacking in technical and financial resources. The Kenya Agricultural and Livestock Research Organization (KALRO) 2022 report indicates potential crop yield reductions of up to 25 per cent over the next decade due to climate change, urging the adoption of sustainable farming methods and technologies. Additionally, post-harvest losses, estimated by the Common Market for Eastern and Southern Africa (COMESA) to be between 20 to 30 per cent, further exacerbate supply chain inefficiencies.
Opportunities for growth and improvement lie in value addition, enhanced agricultural practices, and strategic market linkages. The Carrefour export program, operated by Majid Al Futtaim in Kenya, exemplifies a successful initiative in facilitating international market access for Kenyan farmers, with 645 tonnes of fresh produce exported last year, including 500 tonnes to the UAE. This, alongside investments in infrastructure, technology, and market access, is pivotal for sector growth.
Technological advancements such as precision farming and climate-smart agriculture are instrumental in increasing productivity and adapting to environmental changes. Government and private sector collaboration is essential for improving infrastructure and training for farmers to meet international standards. The sector’s future hinges on strategic partnerships, investments, and policies geared towards enhancing productivity, sustainability, and marketability of Kenyan produce on the global stage.
Source: Soko Directory