Kenya is stepping up efforts to turn its farms into factories, with the government now pushing for more value addition and local consumption of agro-products as part of a broader industrialisation drive.
Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui says, instead of exporting raw produce and importing finished goods at a higher cost, the country should process what it grows and sell it as high-value products. In short, Kenya wants to stop exporting potential and start exporting profit.
Speaking during a tour of agribusiness firm Kakuzi Plc’s orchards in Murang’a County, Kinyanjui said the government is targeting crops such as macadamia, avocado and livestock products to build a stronger agro-processing sector.
“The ongoing plans are geared toward promoting value addition and agro-business capacity building,” he said, adding that Kenya has untapped potential, especially in edible oil production.
He pointed to macadamia as a clear example, noting that local processing could significantly cut the country’s reliance on imports.
“We have the capacity to produce edible oils from macadamia and other oil crops. This will play a key role in reducing imports and promoting the Buy Kenya, Build Kenya agenda,” he said.
Currently, Kenya spends more than Ksh 500 billion every year importing agricultural products, including edible oils that could easily be produced locally. For a country blessed with fertile land and good weather, that figure raises more than a few eyebrows.
Kinyanjui said the government is now keen on flipping that script and turning Kenya into a net exporter of agricultural and manufactured goods.
“We are working to decisively shift our economy from dependence on imports to a net exporter of agricultural products, manufactured goods and value-added commodities,” he said.
At Kakuzi, the vision is already taking shape. The company, which is the country’s largest producer of avocados and the single largest macadamia orchard estate, is doubling down on value addition and diversification.
The firm is aiming to grow its export earnings to over 100 million US dollars annually in the medium term. It is also investing more than 15 million US dollars this year to expand its blueberry farming, increasing its acreage from 10 hectares to 100 hectares. Yes, blueberries are officially having their moment in Murang’a.
Kinyanjui praised the company’s efforts, especially as global demand for healthy foods continues to rise.
“Demand for food will always be there, even in difficult times such as war. I commend Kakuzi for the great work. As they expand, they also create employment opportunities,” he said.
He added that the government will continue opening up international markets through trade agreements, but warned that production must keep up with demand. “As we open up international markets, we must also ensure we have enough produce to meet demand,” he said.
Kakuzi Managing Director Chris Flowers said the company is focusing on diversifying both its products and markets to boost earnings and shareholder value.
“The Kakuzi business growth and diversification plan is firmly anchored in positively contributing to the development and promotion of locally produced, export-grade, quality, value-added products,” he said.
He added that Kenya is strategically positioned to become a leading global supplier of superfoods, serving markets in the Far East, Middle East, Europe and the United States.
Part of that strategy includes investing in processing capacity. Kakuzi has set up a macadamia processing plant with the capacity to handle 2,000 tonnes of saleable kernel, along with a cold-press oil extraction unit producing up to 1,000 litres daily.
The company has also been expanding its product line for local consumers. From loose-leaf tea to ready-to-eat macadamia, cold-pressed oil and blueberries, Kakuzi is increasingly moving from farm produce to supermarket shelf.
In many ways, this is exactly the shift the government wants to see replicated across the country. Because at the end of the day, exporting raw macadamia and then importing expensive cooking oil is a bit like selling your cow and buying back milk at double the price.
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