Agriculture
From The Report: Kenya 2014
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As the country’s largest employer and contributor to foreign exchange, agriculture is a critical pillar of Kenya’s society and economy, and the sector has grown steadily in recent years, despite facing a host of challenges. Although staple crops and subsistence farming are critical to maintaining food security, Kenya is also the world’s largest exporter of black tea, and the country’s horticulture and floriculture segments have seen rapid expansion in international markets. Sector objectives in the president’s 2013-17 manifesto include introducing affordable state loans to subsidise fertiliser and equipment, establishing a viable national irrigation scheme to cover 1m acres of land, and doubling and diversifying food reserves from 22% to 40% of annual consumption. The sector has shown promising growth, with far-reaching government development strategies expected to see production and output improve in the coming years.

This chapter contains interviews with Moses Changwony, Managing Director, Sasini Tea & Coffee; and Jane Ngige, CEO, Kenya Flower Council.

Articles from this Chapter

Overview

Planning ahead: Already a major contributor, the sector is set to benefit from state-backed development and irrigation efforts
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As the country’s largest employer and contributor to foreign exchange, agriculture is a critical pillar of Kenya’s society and economy, and the sector has grown steadily in recent years, despite facing a host of challenges. Although staple crops and subsistence farming are critical to maintaining food security, Kenya is also the world’s largest exporter of black tea, and the country’s horticulture and floriculture segments have seen rapid expansion in international markets. However, the…

Interview

OBG talks to Moses Changwony, Managing Director, Sasini Tea & Coffee
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Interview:Moses Changwony How can small-scale farmers insulate themselves from rising costs and increased global supplies? MOSES CHANGWONY: The cost of labour on plantations, especially those close to Nairobi, is very high. Our estates have to compete for workers, particularly against the construction industry. Construction pays more than the agricultural industry can afford, and to match that would make tea and coffee too expensive to sell. We also have no control over the international…

Interview

OBG talks to Jane Ngige, CEO, Kenya Flower Council
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Interview:Jane Ngige What are the real prospects for growth in Kenya’s flower industry? JANE NGIGE: Flowers account for roughly 7% of the 26% GDP contribution attributed to agriculture. This equates to 1.3% of total GDP growth, and I expect this figure to continue to rise. The world market for flowers is projected to grow at 5% year-on-year, and this means there is space to absorb our expansion. There are huge opportunities for value addition. Extensive growth can also be seen in terms…

Analysis

Improving productivity: Horticultural exports have increased, and plans are under way to boost sector productivity
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Horticulture contributes around 36% of Kenya’s agricultural GDP, with the sector employing 6m Kenyans and showing strong annual growth. Kenya is a major global market for value-added mixed vegetable packs sold in European supermarkets, and the third-largest flower exporter globally after Colombia and Ecuador, driving horticulture to become one of the largest export earners in the country after tea and tourism. Overview Horticulture in Kenya is overseen by the Ministry of Agriculture, Livestock…

Analysis

Piping hot: Tea and coffee are key export commodities, but both segments remain vulnerable to price volatility
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Tea and coffee are among Kenya’s most important export commodities and both have seen production and export values expand considerably in recent years. However, both segments are also heavily dependent on the international export market, leaving smallholder farmers vulnerable to volatility in world prices for the two crops. While Kenya is one of the world’s top producers of high-quality black tea, systemic disparities and falling world tea prices have dampened growth forecasts. Coffee production,…

Analysis

Research initiatives and investments in cargo and processing should help to support growth, although new challenges have arisen
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Boasting some of the highest-quality horticultural crops in Africa, Kenya’s economy is heavily dependent on export earnings from a host of cash crops, including black tea, coffee, horticulture and floriculture. Exports have pointed to a strong performance, and recent private sector investment in cargo and agricultural processing facilities at Nairobi’s Jomo Kenyatta International Airport (JKIA) are expected to continue the sector’s growth and expansion, while new research initiatives could…