Kenya Agribusiness

Agriculture remains a key driver of growth in the Kenya economy, as it is responsible for 65% of Kenya’s total exports and accounts for 25% of the country’s GDP.  Supporting development in the sector is one of the top priorities that the Government of Kenya (GOK) identified for its “Big Four Agenda” which is being implemented over the next five years. 

Food Security is of strategic importance and the country aims to attain 100% of food availability and good nutrition for all Kenyans by 2022.  A current hindrance to this goal is a combination of under performing production and post-harvest loss.  Moreover, food safety standards and practices are present in Kenya, however, not all standards and practices are easily adopted by some farmers and traders, many of whom are part of larger cooperatives. 

Opportunities for U.S. agriculture companies exist in helping cooperatives (as well as specific Crop Boards) with their strategies and by leveraging U.S. machinery, chemicals, and agri-technologies.  Given that agri-tech solutions can be implemented along the entire value chain, companies should consider their offering’s suitability in a developing market like Kenya. 

Another opportunity is related to logistics and storage.  The Kenyan flower industry is a strong performer, especially as they began leveraging advanced cold chain systems and now supply fresh flowers to numerous countries across the globe.  That being said, there is still the need for these cold chain systems for additional agriculture products such as produce and meats. Storage is also a current opportunity as many grains spoil due to the lack of or inadequate storage. 

While the Kenyan economy continues to grow, it should be noted that it is still a price sensitive market, particularly among some farmers.  Companies should be open to creative partnerships, explore different financing options, and be willing to leverage technology to reach as many Kenyan agribusinesses and farmers as possible. 

The U.S. Commercial Service can assist you in identifying specific opportunities and local partners in the agribusiness sector.  For more information, please contact Catherine Malinda Catherine.Malinda@trade.gov