Kenya’s agriculture industry has been a key driver of the country’s economy, contributing significantly to its gross domestic product (GDP) and providing livelihoods for millions.
Over the years, the export of agricultural products has shown impressive growth, driven by both demand and diversification of products.
Kenya’s agricultural exports have evolved from traditional crops like coffee and tea, to include high-value products such as avocados, berries and flowers. This diversification has increased the export value and opened new markets.
According to the Kenya National Bureau of Statistics (KNBS), the sector contributes about 33 percent to the GDP and employs more than 40 per cent of the total population, underscoring its vital economic role.
In 2023, Kenya’s fruit export earnings jumped significantly to Sh32.37 billion, up from Sh19.7 billion in 2022, according to data from the Horticultural Crops Directorate (HCD). The rise in exports has been the result of increasing global demand for high-quality, fresh produce and a strategic focus on expanding market access. Kenya is betting on increased fresh produce exports to buffer its foreign exchange earnings and improve farmers' livelihoods.
Despite its potential, the sector faces challenges such as market access, climate change and infrastructure. Food safety standards and regulations in the international market have been identified as one of the main non-tariff entry barriers for many local farmers, who lack the required technical and financial capacity. Implementing initiatives that support the farmers to navigate the non-tariff trade barriers has the potential to increase export market for Kenyan produce.
On the other hand, erratic weather patterns and increasing frequency of extreme weather events affect crop yields and quality. A 2022 report by the Kenya Agricultural and Livestock Research Organisation (Kalro) highlighted that climate change could reduce crop yields by up to 25 percent in the next decade if no adaptive measures are taken.
Local farmers are adopting sustainable farming methods and new technologies such as crop rotation and mechanised irrigation to combat the impact of climate change. However, additional financial investment and technical support are necessary to accelerate this transition.
In terms of infrastructure, cases where farmers have limited access to advanced storage and transport facilities can lead to post-harvest losses. According to the Common Market for Eastern and Southern Africa (Comesa), an estimated 20 to 30 percent of produce in Kenya is lost post-harvest.
An initiative making a tangible impact locally is the export programme by Carrefour, which Majid Al Futtaim owns the exclusive rights to operate in Kenya and 13 other markets in the Middle East, North Africa, and Asia.
The future of Kenya’s agricultural sector lies in strategic partnerships and investments in infrastructure, technology and market access. Technological advancements, such as precision farming and climate-smart agriculture, are helping farmers increase productivity.
The government and private sector must collaborate to improve infrastructure, such as cold storage facilities and transportation networks, to reduce post-harvest losses and ensure that produce reach markets in optimal condition.
The writer is the regional director, East Africa, Majid Al Futtaim Retail.
