What You Need to Know
Kenya is intensifying efforts to enhance agricultural exports, targeting Sh650 billion through value addition and local production. Investments in agro-business, particularly in crops like macadamia and avocado, are expected to significantly increase farmers’ profits. The government is also focusing on reducing import dependency and positioning Kenya as a major producer of superfoods.
Africa-Press – Kenya. Kenya plans to intensify value addition and consumption of locally manufactured agro-products as part of the national industrial development strategy, Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui has said.
The ongoing plans, CS Kinyanjui said, are geared toward promoting value addition and agro-business capacity building, targeting various crops and super foods, including macadamia, avocado, and livestock products.
Several reports show that value addition is key to transforming Kenya’s agriculture, with farmers increasing profits by an average of 400 per cent through processing, packaging, and branding their raw products.
Currently, the sector contributes a paltry Sh85 billion annually to Kenya’s economy and employs over 180,000 people directly.
State data further shows that 28,000+ farmers across Kenya practice value addition, from simple packaging to complex processing operations, with most successful farmers reporting Sh5-15 million compared to Sh800, 000 to 1.2 million from selling raw products.
Speaking during a tour of listed agribusiness firm Kakuzi Plc’s orchards in Murang’a County, Kinyanjui noted that Kenya has latent potential to produce edible oils from Macadamia, among other oil crops.
The local production of edible oils, he said, will play a key role in advancing import substitution efforts while promoting the Buy Kenya, Build Kenya agenda.
Kinyanjui regretted that the country is spending more than Sh500 billion annually importing agricultural products, including edible oils, which can be grown and produced locally.
He revealed that the government is working to decisively shift our economy from dependence on imports to a net exporter of agricultural products, manufactured goods, and value-added commodities.
“I am impressed at the diverse manufacturing and agribusiness value addition that Kakuzi is undertaking, including the daily production of 1,000 litres of cold-pressed Macadamia oil,” Kinyanjui said.
In Kenya, Kakuzi is the largest producer of avocados and the largest single macadamia orchard estate, with plans to double its current export capacity to more than $100 million (Sh12.9 billion) per year in the medium term.
This year, Kakuzi is eyeing an investment of more than $15 million (Sh1.94 billion) to expand its blueberry-growing venture by increasing its orchards from 10 hectares to 100 hectares.
The cabinet secretary noted that, as global demand for healthy foods grows, Kenya needs to position itself as a major producer of superfoods.
“Demand for food will always be there, even in difficult times such as war. I commend Kakuzi for the great work. As they expand, they also create employment opportunities,” he said.
“The government will continue to support investors in exports. As we open up international markets through economic partnership agreements, we must also ensure we have enough produce to meet demand.”
He said that President William Ruto is spearheading efforts to power agro-industrialization.
“Working with partners such as Kakuzi and through SEZs, EPZs, and County Aggregation and Industrial Parks, the intention is to transform agricultural produce into high-value products for domestic, regional, and global markets.”
Apart from setting up SEZs, EPZs, and County Aggregation and Industrial Parks, Ruto’s regime is lobbying for markets abroad. It has sealed two top markets for local farmers in the past six months: Malaysia and China.
In January, Kenya and Malaysia sealed a strategic partnershipin halal industry, palm oil, and agro processing in a move to boost trade, investments, and regional market access.
Kenya’s High Commissioner to Malaysia, Ekitela Moru, revealed that Kenya seeks to leverage Malaysia’s experience in the halal industry and certification to expand its exports of processed food.
On the cooperation in palm oil, Moru said the Malaysian Palm Oil Council (MPOC) plans to relocate its regional palm oil office for sub-Saharan Africa from South Africa to Nairobi, a move likely to create more jobs.
Kenya would like a situation where Malaysia brings crude palm oil, which is then refined in Kenya for export as downstream products,’’ Moru said.
“He added that this would not only create jobs but also generate by-products, such as soap, considering that 90 per cent of our imports from Malaysia are palm”.
Speaking during the event, Kakuzi Plc managing director, Chris Flowers, confirmed that the firm is actively undertaking a products-and-markets diversification strategy to boost its earnings and shareholder value.
He revealed that Kakuzi’s ongoing diversification strategy prioritises the development of high-quality consumer products for the domestic and export markets.
Kenya, he added, is ideally placed to be Africa’s largest producer of superfoods, supplying the Far East, the Middle East, Europe and the USA.
“The Kakuzi business growth and diversification plan is firmly anchored in positively contributing to the development and promotion of locally produced, export-grade, quality, value-added products,” Flowers said.
As part of Kakuzi’s commitment to industrialisation and the value addition of local oil crops, as envisioned in the Bottom-Up Economic Transformation Agenda (BETA), the firm has integrated a Macadamia Processing Plant, including a Cold-Press Oil extraction unit.
The Kakuzi Macadamia Processing Plant has an installed capacity of 2,000 tonnes of saleable kernel, making it one of the largest in Kenya.
Early this year, Kakuzi introduced a quality loose-leaf tea brand, available in 250g and 500g packs.
Kenya is set to launch the JobsConnect Compact, making it the first country in Africa to finalise the global framework aimed at creating six million new, greener, and dignified jobs by 2030.
The JobsConnect Compact focuses on job creation, food and nutrition security, import substitution, and export growth, including: 5.3 million new and better jobs; reducing food-insecure populations by 10 million.
Through this initiative, it seeks to cut imports by $2–3 billion, and increase agricultural export earnings by $5 billion (close to Sh650 million)
Kenya’s agricultural sector has long been a cornerstone of its economy, contributing significantly to employment and GDP. However, the country has faced challenges such as low value addition and high import costs for agricultural products. Recent government initiatives aim to transform this sector by promoting local production and processing, thereby increasing export potential and reducing reliance on imports. The push for agro-industrialization is part of a broader strategy to enhance economic resilience and food security.
