Agriculture
From The Report: Kenya 2016
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Kenya’s largest contributor to GDP faced significant hurdles in 2015. Exports were hit by a slowdown abroad, and the continued depreciation of the shilling led to a jump in production costs. However, rising demand both at home and regionally and increased production levels are contributing to greater foreign investment, enabling the sector to maintain its economic importance. Plummeting global commodity prices have had a serious impact on tea export revenues; imports of critical crops like sugar and maize have risen as a result of inefficiencies in these subsectors; economic slowdowns in Europe and Asia have weakened global demand for horticulture exports; and the shilling’s ongoing depreciation has exacerbated the sector’s rising production costs. However, the government and private industry are aware of the challenges and have been working to address them.

This chapter contains an interview with Mohammad Abu-Ghazaleh, Chairman and CEO, Fresh Del Monte Produce.

Articles from this Chapter

Overview

Seed money: New investments and developments bode well for continued growth in the sector
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Agriculture remains Kenya’s apex sector and largest contributor to both GDP and economic growth, even as the government intensifies development in utilities, energy, mining, construction and manufacturing. A critical source of employment and the country’s largest export earner, the sector has witnessed notable improvements in mechanisation, value addition and export revenues in recent decades, and Kenya now stands as one of the world’s largest markets for tea and horticulture. The industry…

Analysis

Palm of the hand: Modern technological solutions can help farmers boost output
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Mobile technology is increasingly being used to improve smallholder farming across Kenya, as it holds considerable potential to improve operations, reduce weather-related and post-harvest losses, and offers an efficient and transparent means to distribute millions of tonnes of state-subsidised equipment and supplies. Both public and private entities have moved to roll out mobile platforms for the industry in 2015, and although wide-scale adoption is constrained by limited resources and lack of awareness,…

Interview

Economies of scale: OBG talks to Mohammad Abu-Ghazaleh, Chairman and CEO, Fresh Del Monte Produce
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Interview:Mohammad Abu-Ghazaleh What can be done to encourage the development of large-scale agricultural projects in Kenya? MOHAMMAD ABU-GHAZALEH: The agriculture sector here, as well as in most African countries, is dominated by small-scale and subsistence farming rather than large-scale agricultural projects. These types of farming tend to have lower productivity, and ultimately limit the extent to which the agriculture sector can contribute to the country’s development. Similarly…

Analysis

A sweet deal: Privatisation should see the local sugar industry take off
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Having suffered years of decline, Kenya’s domestic sugar industry is set for renewal in 2015 with the announcement of plans to privatise five state-owned sugar companies. With imports rising and production falling, the potential for private sector expansion is considerable – though rising input costs, low productivity and an expected influx of cheaper sugar imports could limit private investment in the near term. Sugar Conditions While Kenya’s higher altitude means growing cycles can last…

Analysis

Green thumb: A vibrant horticulture segment creates a wealth of opportunity
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A powerhouse export segment and major engine for the agriculture sector, Kenyan horticulture has made enormous strides in recent years, despite an increasingly challenging and complex regulatory landscape in its key market, the EU. While production and export volumes rose in 2014, profits in some segments contracted as a result of currency fluctuations. Yet ongoing value-addition initiatives, coupled with the renewal of a critical bilateral agreement with the EU, should see the sector’s performance…