Table of Contents

 

 

Kenyan Agriculture Sector

 

6.0 Major issues In Kenya’s Agriculture Sector

Over the last few years, the agricultural sector’s performance has been gradually increasing in some key commodities such as horticulture, tea, dairy, and maize. Despite this remarkable revival of the sector, it has witnessed and experienced challenges on some commodities such as tea, pyrethrum, coffee sugar, and livestock and fisheries.[1] These challenges need to be addressed by stakeholders and the government to exploit Agriculture’s full potential and ensure food security. Some of the challenges are internal, while others, such as global food prices, are external.

6.1 Inadequate budgetary allocation.

Kenya has periodically fallen short of adequately financing agriculture, which is the backbone of the economy. Kenya allocation budgetary allocation to the Agricultural sector less than 5% of the annual budget. This budgetary allocation to agriculture contravenes the 2003 Maputo Declaration, where the African Heads agreed to commit at least 10% of their annual budgets specifically to Agriculture. Lack of funds has hampered the development of infrastructures such as roads, extension services, and subsidies to agricultural inputs, which are key in boosting agricultural output.

6.2 Reduced the effectiveness of extension services.

The last twenty years have been characterized by a declining level of utilization of extension services. This challenge has been attributed to budgetary allocation constraints coupled with a sharp reduction in human capital resources in the agricultural field.   Extension services played a crucial role in assisting farmers in adopting proper farming methods, harvesting, and storing methods. Specifically, livestock extension in the Arid and Semi-arid regions has not been adequately financed. Despite government revitalization of agriculture, inadequate financing and human resource in the extension service programs, especially in rural areas, have hindered agricultural growth.

6.3 Low absorption of modern technology.

Despite the Kenyan government putting in place elaborate agricultural research mechanisms, setting up robust[2] Institutions to undertake scientific research to boost productivity or yields and develop improved hybrids, for example, in KARI or KAROL. However, the utilization of current science and technology in agricultural production has still limited to a few. This has been attributed to farmers still preferring to use traditional farming methods and producing, resulting in lower yields. Lack of enough extension personnel to encourage farmers on the importance of utilizing new technology, especially in areas where traditional practices have taken enroot. This slow absorption of Morden technology has been a major challenge.

 

 

6.5 High cost and increased adulteration of key inputs.

The Kenyan agricultural sector over the last decade has experienced a high cost of inputs.[3] These entail seed, pesticides, fertilizer, drugs, and vaccines. Due to their high cost, they have been out of reach for the majority of farmers. Also, Kenya has witnessed an influx of substandard and counterfeit agricultural inputs. Substandard inputs such as pesticides and fertilizers have flooded the market and subsequently negatively impacted agricultural productivity.

6.6 Limited capital and access to affordable credit.

Farming is considered highly risky by the formal banking sector.[4] Thus it gives farming little attention. Without credit, farmers are hard-pressed to finance inputs and capital investment. Several microfinance institutions are operating, but they tend to increase credit cost, reach only a small proportion of smallholder farmers, and provide only short-term credit. The formal banking system is just beginning to develop credit facilities particularly suited to small- scale farming.

 

6.7 Multiple taxes on agricultural products and inputs

Multiple taxations along the supply chain have characterized the agricultural sector.[5] A good example is the multiplicity farmers are subjected to when transporting their farm produce; they are subjected to taxes from the various local county governments they transverse through and the national governments. The net effect of the multiple taxing is that the farmers’ total net income is significantly reduced.

6.8 Weak surveillance on offshore fishing

Kenya has the inadequate capacity and inefficient monitoring capabilities and ensures compliance of rule and regulation encompassing the effective exploitation of offshore territorial. Kenyan territorial waters are prone to fishing by unauthorized vessels that utilize advanced technology in fishing illegally.

6.9 Inadequate infrastructure;

Kenya’s rural areas have poor infrastructural development. Most notable are poor roads that have made agricultural products expensive and led to a loss of products. The high transportation cost also erodes farmers’ profit margins that were subsequently made the farmer less competitive. In addition, key infrastructural projects such electricity connectivity still remains a hindrance to rural areas due to the high cost or total lack. This has negatively impacted the farmers’ ability to utilize modern technology that runs on electric power, such as cold rooms and mechanized irrigation and processing of some of the agro-product.

 6.10 Diseases and pests have been a great challenge to livestock production.

Particularly, they lead to vast losses through deaths, reduced productivity, and market loss for products. The prevalence of transboundary diseases such as foot and mouth, chronic bovine pleuropneumonia, lumpy skin disease, trypanosomiasis, East Coast fever, brucellosis, contagious caprine pleuropneumonia, rabies, Newcastle disease, and Gumburo disease continues to be a challenge. Emerging and re-emerging diseases that are also zoonotic like Rift Valley fever, avian flu, and bovine TB need sustained surveillance.

7.0 Opportunities in the Agriculture sector

Despite the numerous challenges facing agricultural growth and development in Kenya, it can exploit opportunities to create a robust dynamic agricultural sector.

7.1 Abundant human resources.

Kenya is a resource-abundant country with flora and fauna, but it has enormous human resource capital. The Kenyan population is largely made of the youth whose majority have high literacy levels, as observed with the increasing production of primary, secondary, and graduates every year. This rich human resource pull can be used to transform the perception of agriculture as a career. Training and research through the available human resource capital are necessary for developing new and relevant technologies in expanding agribusiness.

7.2 Expansion to new markets.

Kenya is uniquely geographically placed. It has a comparative advantage compared to many landlocked countries in the region; thus, there is a need to seize the advantage of broadening the domestic, regional, and international markets. With a unique, diverse agro-ecology, Kenya should broaden its variety of products from traditional products such as coffee tea and horticulture to global products globally, such as the emerging ostrich, guinea fowl, crocodile frogs butterflies, among many others. Enormous opportunities are opening up in biofuels’ production from sugar cane, maize, millet, sorghum, jatropha, and other oil-bearing seeds.

7.3 Potential for increasing production.

Not much effort has been put into increasing the production of traditional commodities in Kenya. Agricultural productivity can be increased in multiples through better use of unused land in traditional farming areas and irrigated agriculture. The vast livestock potential in the arid and semi-arid areas covering 80 percent of the country remains untapped, as does the fisheries’ potential of the exclusive economic zone in the Indian Ocean and fish farming in the highlands ASALs.

7.4 Vast irrigation potential.

Kenya has since independence relied on rain-fed agriculture; however, the country has enormous potential in irrigation. It is estimated it can bring over 1,000,000 hectares of land under irrigation; however, it is currently slightly above 105,000 hectares. The enormous potential for exploiting irrigation can be expanded by 1 million ha by developing the Galana irrigation project in Tana and Athi basins. Lake Victoria has a 253-km shoreline in Kenya that is basically underutilized despite its vast irrigation potential.

7.5 Value addition.

Kenya needs to work on the value addition of its raw agricultural exports. This will enable the farmers to get higher prices for their produce. Value addition entails processing, branding, quality certifications, accreditation, and farm-level quality improvements that the market values.  Estimates show that over 90% of the total agricultural exports are in the raw or semi-processed form. Kenya loses a significant proportion of her foreign exchange earnings due to a lack of value addition.[6] This has predominantly been on products such as tea, coffee, milk and beef, fruits, and vegetables that have primarily been exported in their raw form.

 

The genesis of Issues and how they could be avoided

The Government comes up with the Strategy for Revitalizing Agriculture in March 2004 to respond to the Economic Recovery Strategy.[7] The strategy set out the vision of the Government to transform Kenya’s agriculture into a profitable, commercially-oriented, and internationally and regionally competitive economic activity that provides high-quality, gainful employment to Kenyans. This was to be achieved within improved agricultural productivity and farm incomes while conserving the land resource base and the environment. The SRA also gave guidelines for actions needed in each agricultural subsector to achieve the vision.

 

Interventions

To address these challenges, the livestock subsector will implement the following interventions aimed at transforming the livestock development subsector:

Reviewing policy, legal and institutional frameworks

After introducing the devolved system of government, the current agricultural policies have witnessed disjointed and weak policies, legal and institutional frameworks. These policies have hindered investment and growth of private-led agricultural advancement. The national government should push for harmonization of county policies by regulating and facilitating agricultural activities.

An urgent need to streamline the current legal tax regime has been disadvantageous to boosting agricultural growth in the country. There is a multiplicity of numerous types of taxes and levies facing the agriculture sector from the farm gate to the distribution channels. There are county levies for agricultural products imposed on farmers; different counties have different levies for goods and products transported or sold in their regions. The counties and national government should harmonize their tax regime to avoid multiple taxing the same products to ensure a conducive environment that encourages production and marketing.

A policy’s priorities will seek to promote a competitive agricultural sector and develop diversified products and market outlets. The sector will review and harmonize existing policies and create a new policy framework to transform it. The ongoing review of all laws and regulations governing its operations will be completed to create a favorable development environment.

The government should formulate and comprehensively implement reforms and policies for livestock, poultry, livestock breeding, animal disease control, animal welfare, apiculture, dairy development, animal feedstuff, and veterinary pharmaceuticals. Institutions will be developed, reformed, and strengthened to facilitate efficient service delivery and attainment of subsector objectives.  All relevant laws and policies will be reviewed to reflect current practices. In areas where there is a lack of regulation, the government should undertake inclusive, collaborative stakeholder participation in the formulation stages, such as the recent sugar, maize, and current ongoing tea reforms.

 

Improving agribusiness and market access

Accessing existing markets and new markets is crucial for the growth and development of agriculture. This will only be achieved by addressing all the emerging issues along the value chain from the farm to the final consumer to enhance productivity and reduce bottlenecks along the distribution chain. Major agricultural exports include livestock, industrial or cash crops such as tea, coffee and pyrethrum, and horticultural, which is primarily focused on producing fruits, vegetables, and flowers.

Kenya has been a member of the World Trade Organization to expand and broaden its market by reducing trade barriers such as easing restrictions and taxes. The agriculture sector will be a key player in multilateral and bilateral trade negotiations to expand and diversify agricultural products and markets. Regional markets, especially the COMESA block, are now the major destination for Kenya’s exports. The subsector will collaborate with other relevant sectors and subsectors to promote economic cooperation and regional integration to expand local markets.

Improving market access for livestock and livestock products is important. From the late 1990s, global trade in agricultural products has increased sanitary and phytosanitary conditions. For instance, foot and mouth disease has forced countries to impose import bans and stricter sanitary requirements and other technical barriers such as requirements on labeling and animal traceability schemes. To access the expanding international markets, research will need to be undertaken. Sanitary interventions will be implemented to satisfy the growing demand for high-quality livestock products and by-products to allow producers to benefit from the increased demand for livestock worldwide.

For Kenya’s agricultural sector to maximize income from the livestock subsector, efforts will be made to intensify value addition to livestock products. For example, adding value to hides, skins, and leather should be prioritized as a strategic transitional economic development activity towards realizing the industrialization strategy by 2020 as a joint venture between the private and public sectors.

At the national and county levels, the government should ensure they address the issues of having an efficient and robust market infrastructure that looks into compliance to set out international guidelines on the quality and safety standards of various products. This will assist farmers who majorly rely on exports to have wider market access as characterized by the increasing avocados exports European Union, the export of goat meat in the middle east, and tea exports in the United Kingdom.

The various actors involved in the various agricultural sector livestock and food crop should increase and accelerate working relations with the relevant stakeholders to ensure that agricultural products meet international quality and safety standards.

To have a fruitful marketing strategy, there needs to be a deliberate and seamless collaboration between government through the respective departments with the ministry of agriculture with all major stakeholders both public and private sector, to ensure there is inclusive participation in the development of effective marketing infrastructure, especially in the rural market facilities. Farmer organizations should be empowered and strengthened to ensure they are undertaking their role in providing market support services.

 

 

Enhancing access to Inputs and Credit

To increase agricultural productivity and improve farming as a  business,  farmers need access to inputs and credit. Appropriate credit packages suitable for small-scale producers will be made available to enable the producer’s access key inputs such as fertilizer, agrochemicals, and seed. Farmers need capital investment for irrigation infrastructure, value-addition technologies, and general farm development to comply with food safety regulations. The subsector will need to formulate interventions such as developing the relevant credit packages suitable for small-scale producers, improving access to key inputs, and implementing the flagship fertilizer cost-reduction investment project.

 

Strengthening research, extension, and training

Kenya relies on a few marketed agricultural products: tea, coffee, sisal, and horticulture. Expanded and diversified regional and global market access for the country’s agricultural products will largely depend on the agricultural sector’s competitiveness. This calls for improved productivity and an increased agricultural production base. To achieve this research–extension links, the government needs to strengthen and ensure demand-driven research and effective application of research technologies on the farm. The private sector should also be encouraged and supported to invest in agricultural production at all levels of the supply chain from farming, research, and extension to processing and marketing.

Strengthening extension services and creating strong links between research and extension are two of the subsector’s overriding objectives. Effective adoption of technology packages will require a participatory approach to extension. The sector will need to strengthen its extension service delivery system and encourage private sector participation in the delivery of extension services. In particular, it will empower farmer organizations and communities to provide these services at the grassroots, for example, through the provision of high-quality breeds and seeds for specific regions.

The sector requires improving and strengthen support services by improving its institutions such as agricultural training colleges, rural training development centers, and agricultural training centers. The sector should increase collaboration efforts with the private sector and other agricultural sector ministries and agencies to make these support services available to farmers and service providers.

 

Improving livestock productivity

To improve livestock productivity, strategies will be developed and implemented to improve livestock breeds, improve feeds regulation, develop pastures and forage, and enhance research and extension services.

Animal breeding. Animal breeding is one of the key intervention areas for increased livestock productivity. Currently, livestock productivity is negatively affected by poor genetic make-up. The average milk yield is 5 liters per dairy cow per day; beef animals’ carcass weight is 120 kg. To increase overall productivity, these two parameters need to be improved through breeding using superior genetics.

The country has a large and diverse reservoir of animal genetic resources. However, the database on species and breed diversity, population size, trends, and distribution are inadequate and only available for a few species as no inventory or characterization has been undertaken. A complete inventory, characterization, and documentation of animal genetic resources for conservation are needed.

Farmers, community-based organizations, NGOs, breeder associations, and the Government are involved in managing animal genetic resources. Breeding services are facilitated by the Kenya Stud Book, the Livestock Recording Centre, the Central Artificial Insemination Station, the Kenya National Artificial Insemination Service, and breeder associations. A central authority for recording animals, regulating breeding programs, and undertaking other relevant tasks related to self-sustaining breeding schemes should be established.

Improving Control of Livestock Diseases and Pests

Disease and pest control is a key input for increased livestock productivity to reduce losses associated with disease incidence and pest infestation. Since structural adjustment programs were adopted in the 1990s, public provision of disease and pest control services was placed under the private sector. However, low private sector presence owing to thin and sometimes missing markets in various parts of the country led to poor service delivery and compromised livestock productivity. As a result, Kenya has virtually lost its international market share for livestock and livestock products.

Pests and diseases that had been contained initially before the switch from government to private such as the contagious bovine pleuropneumonia, contagious caprine pleuropneumonia, and foot and mouth, are re-emerging and adversely affecting livestock farming. Zoonotic diseases, particularly those transmitted through milk, such as tuberculosis and brucellosis, are also becoming concerning issues that should be mitigated urgently. Other re-emerging diseases such as avian influenza and the Rift Valley fever require rapid containment.

Establishing disease-free zones will be key in averting the adverse effect and spread of diseases, building farmers’ capacity to adapt and use appropriate and cost-effective livestock husbandry practices, and establishing collaborative links. This should be undertaken and achieved by holding periodic forums with the stakeholders at the local, county, and regional East Africa Community to increase surveillance, management, and control of local and transboundary diseases.

 

8.1 Establishing the Agricultural Sector Coordination Unit.

Although the establishment of agricultural sector coordination was a well thought out strategy for revitalizing Agriculture, it took time to be implemented and accepted by the sector ministries. It was not until 2006 that the unit was fully established and staffed. Recruitment of key staff, which comprised seconded staff, went on until 2008. The unit is now well established and playing a key role in coordinating issues that cut across ministries. It also serves as a one-stop-shop for the entire agricultural sector.

8.2 Reviving agricultural institutions:

Over the last two decades, the Kenyan government has undertaken numerous initiatives in reviving public institutions that were on the verge of collapse or shut down. It’s notable that since 2002 the government has taken deliberate steps to revive several key agricultural-related institutions.[8] For example, Kenya Meat Commission, Kenya Cooperative Creameries, Kenya Seed Company, Agricultural Finance Corporation, and the Agricultural Development Corporation. These institutions play a crucial role in boosting and financing agricultural activities such as providing research and extension services, credit provision to members, training centers, and hiring equipment such as tractors. Institutions that had shut down, such as sugar industries, have been revived, and even others are currently on the verge of privatization.

8.3 Increasing agricultural productivity.

Despite the weather’s vagaries, the impact of climate change, and external factors such as the high cost of inputs, crop yields on smallholder farms have increased significantly over the last 5 years.[9] For example, the average yield of maize has increased from 1.5 to 3 tonnes per hectare. This is attributed to better technology transfer and extension services. Furthermore, the yield for medium and large-scale farmers has increased by a higher margin due to high-yielding varieties and better agronomic practices.

8.4 Developing policies and legislation.

Developing policies and drawing up legislation has been hampered by a lack of capacity and a protracted process. In the last 5 years, over 15 policies and 6 pieces of legislation have been developed and are being implemented. Among these are the Seed Policy, the Food Security and Nutrition Policy, the National Dairy Development Policy, the National Agricultural Sector Extension Policy, the Cotton Act 2006, and the Cooperatives Policy. This success is attributed to restructuring ministries by creating directorates and units that are coordinating policy development.

 

8.5 Increasing agricultural growth.

The Strategy for Revitalizing Agriculture set the target for agricultural growth at an average of 3.1 percent by 2003, to reach 5 percent by 2007.[10] This target was achieved: growth reached an average of 5.2 percent by 2007 with the highest being 6.2 percent in 2006. This growth path was interrupted in 2008 by external factors. However, the sector has great potential to return to its previous growth path.

 

 

 

 

 

 

 

 

 

References

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Kazimierczuk, Agnieszka Helena. “Tracing inclusivity: Contribution of the Dutch private sector to inclusive development in Kenya. Case study of Unilever Tea Kenya Ltd., the flower sector and Lake Turkana Wind Power project.” Ph.D. diss., 2020.

Ibid

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Recha, Charles W. Local and regional variations in conditions for agriculture and food security in Kenya. No. 7. 2018.

Wainaina, Priscilla, Songporne Tongruksawattana, and Matin Qaim. “Synergies between different types of agricultural technologies in the Kenyan small farm sector.” The Journal of Development Studies 54, no. 11 (2018): 1974-1990.

Jayne, Thomas S., Nicole M. Mason, William J. Burke, and Joshua Ariga. “Taking stock of Africa’s second-generation agricultural input subsidy programs.” Food Policy 75 (2018): 1-14.

Ndegwa, Michael K., Apurba Shee, Calum G. Turvey, and Liangzhi You. “Uptake of insurance-embedded credit in presence of credit rationing: evidence from a randomized controlled trial in Kenya.” Agricultural Finance Review (2020).

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Aragie, Emerita. “Identifying opportunities for value chain development in the Kenyan coffee sector: A modelling approach.” Outlook on AGRICULTURE 47, no. 2 (2018): 150-159.

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Kiriti Nganga, Tabitha, Mercy G. Mugo, Elisabeth Bürgi Bonanomi, and Boniface Kiteme. Impact of Economic Regimes on Food Systems in Kenya. No. 7. Towards Food Sustainability Working Paper, 2018.

Mohamed, Shukri F., Pamela Juma, Gershim Asiki, and Catherine Kyobutungi. “Facilitators and barriers in the formulation and implementation of  agriculture, tobacco control policies in Kenya: a qualitative study.” BMC Public Health 18, no. 1 (2018): 960.

Goyal, Aparajita, and John Nash. Reaping richer returns: public spending priorities for African agriculture productivity growth. The World Bank, 2017.

 

[1] Recha, Charles W. Local and regional variations in conditions for agriculture and food security in Kenya. No. 7. 2018.

[2] Wainaina, Priscilla, Songporne Tongruksawattana, and Matin Qaim. “Synergies between different types of agricultural technologies in the Kenyan small farm sector.” The Journal of Development Studies 54, no. 11 (2018): 1974-1990.

[3] Jayne, Thomas S., Nicole M. Mason, William J. Burke, and Joshua Ariga. “Taking stock of Africa’s second-generation agricultural input subsidy programs.” Food Policy 75 (2018): 1-14.

[4] Ndegwa, Michael K., Apurba Shee, Calum G. Turvey, and Liangzhi You. “Uptake of insurance-embedded credit in presence of credit rationing: evidence from a randomized controlled trial in Kenya.” Agricultural Finance Review (2020).

[5] Ogada, Maurice J., Paul M. Guthiga, Geoffrey O. Sikei, Germano Mwabu, Chris O. Shimba, and Eric Momanyi. “The burden of produce cess and other market charges in Kenya’s agriculture.” African Journal of Economic Review 6, no. 2 (2018): 232-245.

[6] Aragie, Emerita. “Identifying opportunities for value chain development in the Kenyan coffee sector: A modelling approach.” Outlook on AGRICULTURE 47, no. 2 (2018): 150-159.

[7] Falling, Marijn. “Framing agriculture and climate in Kenyan policies: a longitudinal perspective.” Environmental Science & Policy 106 (2020): 228-239.

[8] Kiriti Nganga, Tabitha, Mercy G. Mugo, Elisabeth Bürgi Bonanomi, and Boniface Kiteme. Impact of Economic Regimes on Food Systems in Kenya. No. 7. Towards Food Sustainability Working Paper, 2018.

[9] Mohamed, Shukri F., Pamela Juma, Gershim Asiki, and Catherine Kyobutungi. “Facilitators and barriers in the formulation and implementation of  agriculture, tobacco control policies in Kenya: a qualitative study.” BMC Public Health 18, no. 1 (2018): 960.

[10] Goyal, Aparajita, and John Nash. Reaping richer returns: public spending priorities for African agriculture productivity growth. The World Bank, 2017.