Slow growth of agriculture imperils Vision 2030, say experts

• The sector recorded slow growth of 1.5 per cent last year after sending a positive signal of recovery the previous year when it grew by 6.4 per cent.
• Low productivity, lack of financing, and climate change are among top challenges to be addressed urgently to boost the sector’s contribution to the economy.
• In Kenya, small-scale farmers contribute more than 60 per cent of agricultural production but they lack access to finance, storage facilities, transport infrastructure, and inputs.
• Government officials say that devolution of agricultural institutions to counties would transform the sector after the formation of county agricultural boards to coordinate grassroots activities, including revival of cooperative societies.

The slow growth of agriculture is raising eyebrows among experts even as the government banks on farming to achieve a medium income status in less than two decades.

At the Kenya Agricultural Transformation Forum held in Nairobi on Tuesday, participants cited low productivity, lack of financing, and climate change among top challenges they want addressed urgently to boost the sector’s contribution to the economy.

“Agriculture is the engine of our nation’s economy; yet too many Kenyans struggle to ensure that their fields prosper and their families are fed. ‘‘There is far too much promise in our country’s agricultural sector for us to fall short of our economic potential,” Mr Mugo Kibati, the director-general of Vision 2030 said.

Although listed as one of the six sectors that have to grow by at least 10 per cent annually to lift Kenya to middle-income status by 2030, agriculture’s contribution to the economy has been wobbling over the past five years.

Slow growth

The sector recorded slow growth of 1.5 per cent last year after sending a positive signal of recovery the previous year when it grew by 6.4 per cent.

“It’s time to deepen alliances and invest in innovation that will help women and men on the frontline of Kenya’s agricultural workforce,’’ said Ms Jane Karuku, the president of Alliance for Green Revolution (Agra).

In Kenya, small-scale farmers contribute more than 60 per cent of agricultural production but they lack access to finance, storage facilities, transport infrastructure, and inputs. “Given support, smallholder farmers can feed the future of the country and the continent,” said Ms Karuku.

The forum discussed the need for agricultural innovation, food pricing, agricultural financing ,and links to nutrition saying that these could boost the sector’s ability to create jobs and provide households with income.

Government officials said devolution of agricultural institutions to counties would transform the sector after the formation of county agricultural boards to coordinate grassroots activities, including revival of cooperative societies.

On Tuesday, sector players said small-scale farmers — being the key driver of growth — need insurance to cushion them against investment risks, lack of inputs, and boost storage facilities.

“Commercialisation of agriculture in line with Vision 2030 implies that a lot has to be done to help smallholder farmers to grow to scale,” said Ms Esther Muiruri, the general manager in charge of agriculture at Equity Bank.

She said that small-scale farmers needed to form groups in order to provide guarantees for individual member’s loans.

UAP Insurance, one of the first firms to roll out livestock and crop insurance, said it was forced to lock out most smallholders because of high costs.

“Most farmers have less than five acres. We use a lot of resources to send our inspectors to fields in remote areas of the country to gather information for crop insurance,” said UAP’s head of marketing and distribution Joseph Kamiri.