Kenya Agriculture and Irrigation

The Kenyan Government increased its 2021-2022 budget for the agriculture sector to over $550 million to aid in the country’s economic recovery strategy. Despite facing floods and locust infestation in 2020, the sector recorded a relatively stronger performance than other sectors of the economy that have been adversely affected by the COVID-19 Pandemic. The increased funding aims to support programs that promote resilience against climate variability and change.

To increase agricultural productivity and improve resilience to climate change risks, the government has zeroed in on small-scale irrigation and is promoting the use of updated farming techniques for smallholder farming and pastoral communities in Kenya. The budget highlighted climate-smart agricultural productivity projects as well as curbing losses resulting from drought-driven emergences to promote a more sustainable and profitable sector.

With an increase in budgetary support going to Kenyan farmers, U.S. companies may find opportunities to provide their solutions in the market. For example, there will likely be an increase in opportunities for U.S. companies to supply modern irrigation technology, water saving and irrigation management solutions (particularly for drought-stricken areas), and consulting in water resource assessment in water harvesting and technology. By providing new technologies that are cost-effective, U.S. companies can assist in strengthening the agriculture sector in Kenya.

The 2021-2022 budget is in line with President Kenyatta’s Big Four Agenda, which includes food security. The government’s strategy is aimed at increasing productivity and incomes for smallholder farmers, improve additional agricultural output and increase households’ food security. Given the importance of the sector to Kenya, the government has established a Public-Private-Partnership (PPP) Directorate and it is open to reviewing privately initiated PPPs within the sector. Lastly, U.S. companies are encouraged to consider working with a local partner that can assist in reaching farmers and cooperatives needed for market development as well as assisting with import logistics and in-country distribution.

For more information on how the U.S. Commercial Service can assist in finding local partners as well as additional insight on the agribusiness sector in Kenya, please contact Catherine Malinda (Catherine.Malinda@trade.gov).