Kenya’s economy expanded 6.3 per cent last year, the fastest pace in eight years and is forecasting a similar growth rate this year.
Wednesday 15, May 2019
(Bloomberg) --Kenya, the world’s largest exporter of black tea, plans to boost output from agriculture to KSH 3.9 trillion ($39 billion) from KSH 2.9 trillion, through a compounded annual growth rate of six per cent during the first half of a 10-year plan.
According to the Ministry of Agriculture, in the initial phase of the Agricultural Sector Transformation and Growth Strategy, Kenya intends to boost agro-processing income by 50 per cent to eliminate the need for food aid and boost small-scale farmers’ average income to KSH 625 daily from KSH 465.
“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 GDP of up to 170 billion shillings per annum in five years,” according to the plan.
Agricultural production, which accounts for about a third of the economy, advanced 6.6 per cent in 2018 from 1.8 per cent a year earlier when drought and fall armyworm infestations curbed output.
The 2019-2029 plan will implement nine programs including setting up six agro-processing hubs and placing 50 closely held farms totalling 150,000 acres under irrigation.
Additionally, the plan also envisions providing 1.4 million farming households with subsidized agricultural inputs.