Case Studies

Transforming Kenya’s Agricultural Inputs Sector

Despite the importance of agriculture to the Kenyan economy, it has not been performing to its potential. There is limited diversification away from staple crops, such as maize, and average yields remaining below those of comparable countries. Kenyan farmers use relatively low levels of inputs. This lowers productivity and therefore farmers’ returns and their ability to reinvest in their crops.

Agriculture is the backbone of Kenya's economy

Employment

It employs more than 40% of Kenya’s total population and about 70% of its rural population.

GDP Growth

The sector generates a third of Kenya’s GDP. In Kenya, 1% of agricultural growth is estimated to drive 1.6% overall GDP growth.

Exports

In 2016, the sector was valued at KES 2.3 trillion (roughly 22 billion USD), generating 60% of Kenya’s exports.

Woman with crops

While several factors have affected productivity, the structure of the agricultural inputs market has been a major cause of poor performance.

 

This stems from two main issues;

The short-term oriented business practices of actors in the inputs supply chain

Seed sector governance and regulation

One of the key drivers of agriculture transformation is without doubt, productivity. There is so much more that we can do to raise productivity of the land under cultivation.
HON. MWANGI KIUNJURI, E.G.H CABINET SECRETARY, MINISTRY OF AGRICULTURE, LIVESTOCK, FISHERIES AND IRRIGATION

Gatsby Africa and Kenya Markets Trust have worked together in Kenya’s Livestock sector since 2013.

This case study is a summary of the different pathways that have been the focus of our joint work over the years, successes we have achieved, and lessons we have learnt along the way.

 

Download the Case Study