Kenya plans to boost agriculture output 6% annually over 5 years

Kenya, the world’s largest exporter of black tea, plans to boost output from agriculture to Ksh3.9 trillion (US$39 billion) from Ksh2.9 trillion (US$29 billion), through a compounded annual growth rate of 6 percent during the first half of a 10-year plan.

In the initial phase of the Agricultural Sector Transformation and Growth Strategy, Kenya intends to boost agro-processing income by 50 percent or Ksh130 billion (US$1.3 billion), eliminate the need for food aid and boost small-scale farmers’ average income to Ksh625 (US$6.25) daily from Ksh465 (US$4.65), according to the Ministry of Agriculture’s website.

“Early estimates indicate that the strategy could improve the lives of 3.3 million small-scale farming households, approximately 15 million Kenyans, and contribute additional agricultural gross domestic product (GDP) of up to Ksh170 billion (US$1.7 billion) per annum in 5 years,” according to the plan.

Kenya’s economy expanded 6.3 percent last year, the fastest pace in 8 years, and is forecast to grow at a similar rate this year. Agricultural production, which accounts for about a third of the economy, advanced 6.6 percent in 2018 from 1.8 percent a year earlier when drought and fall armyworm infestations curbed output.

The 2019-2029 plan will implement 9 programs including setting up 6 agro-processing hubs and placing 50 closely held farms totaling 150,000 acres (60,700 hectares) under irrigation. The plan also envisions providing 1.4 million farming households with subsidized agricultural inputs.

Source: Bloomberg News