WEF_GrowAfrica_AnnualReport2014

2013 in Review
2013 in Review
2.5
Country
Report
Kenya
Inviting agri-investors to
partner locally
2013 IN REVIEW
PROGRESS
A fresh start seeks to tap private-sector
dynamism in agriculture
Kenya’s Vision 2030 affirms agriculture as the country’s
economic backbone, and as vital to attaining its
ambition of “a globally competitive and prosperous
country with a high quality of life”. Accounting for
almost 30% of GDP, 65% of exports and 60% of total
employment, the sector is key to delivering on Vision
2030’s target of 10% annual economic growth. The
country’s agricultural private sector is vibrant and
established, and actively seeking to modernise and
expand both production and value-adding activities.
The national Agriculture Sector Development Strategy
(ASDS 2010-2020) provides a strategic framework for
transforming agriculture into a profitable, commerciallyoriented,
and regionally- and internationallycompetitive
sector that generates jobs, increases
income and delivers food security. Vision 2030 focuses
these efforts on the following value chains: dairy,
maize, coffee, tea, potatoes, meat and meat products,
nuts, fruits and cereals.
In 2013, the newly-elected government led a process
of devolution, with the new Kenyan Constitution
introducing two distinct and interdependent levels of
government – national and county. The 47 counties
headed by governors have new powers, funds and
responsibilities, including to foster locally-appropriate
agricultural development. While national government
plays an enabling, strategy-setting and coordinating
role, it is at the county-level that agribusinesses are
encouraged to forge public-private partnerships (PPPs)
that unlock investment and growth.
The Agricultural Sector Coordinating Unit (ASCU)
provides a cross-government body to manage
Kenya’s agricultural strategy, and is actively hosting
opportunities for the private sector to engage with
county governors on prospects for investment and
partnership. Additionally, the Government of Kenya
(GoK) is seeking private-sector partners for a flagship
one million-acre irrigation and food security project
in Galana-Kulalu at the coast, with some $40 million
earmarked for the initiative’s first phase.
Due to last year’s political transition, Grow Africa has
not yet supported Kenya with a promotional effort to
generate Letters of Intent (LOIs) from companies. This
year sees the commencement of this process, and with
new clarity and direction amongst Kenyan partners,
the GoK is already proactively inviting companies to
collaboratively develop such investment plans.
With the ushering in a new government, 2013
witnessed a fresh start for Kenya’s relationship with
Grow Africa. While the “Lamu Port-South Sudan-
Ethiopia Transport Corridor” (LAPSSET) remains an
important national infrastructure priority and longterm
driver of agricultural growth, the government is
now focused on more immediate strategies to boost
investment in the agricultural sector.
The President has made private sector-led
development in agriculture a manifesto priority for
his government. Public-sector leaders are actively
pioneering approaches to achieve this in the context
of the newly-devolved government structures. For
example, governors now have funds for agricultural
mechanisation, and counties have convened
investment forums through which to engage directly
with the private sector on opportunities in their area.
The GoK has recognised that the new governmental
structure will elevate the need for strategic coordination
to provide targeted and aligned support to counties. To
this end, the ASCU (the sector’s coordinating body) is
restructuring to incorporate multiple Ministries and the
Kenya Investment Authority (KenInvest).
Whilst this extended period of transition and
restructuring has left many companies feeling
disconnected from their public-sector partners, the
private sector has nonetheless remained dynamic
and optimistic about agriculture in the country. Five
companies have LoIs with Grow Africa that reference
a commitment to advance investments in Kenya. Of
these, most are scaling up bottom-of-the-pyramid
approaches to serve Kenya’s large smallholder
market with services. For example, Syngenta served
over a million smallholders with affordable packs of
inputs, and Vodafone reached increasing numbers
through mobile financial and information services.
The Kenya Private Sector Alliance (KEPSA) and the
Kenya Agribusiness and Agro-industry Alliance (KAAA)
offer strong and mature apex organisations that are
promoting agricultural partnerships and investment.
Some of this private-sector optimism stems from
widespread improvements to infrastructure in the
country. New mega-highways, such as the Thika
Superhighway and the Northern and Southern
Bypasses, opened up new markets by reducing the
time and cost of getting goods between major urban
and rural centres. New rural roads enabled new
opportunities for commercially-viable production.
Additionally, the government has committed to major
irrigation projects both at county-level (through the
National Irrigation Board) and as part of its flagship
Galana-Kulalu project.
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Kenya
Kenya
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