Kenya is eyeing Chinese investors in agro-processing to increase value addition in agricultural produce for export to Africa and other global markets.
This is mainly on tea, coffee and horticultural produce such as flowers, fruits, vegetables and herbs, in a move aimed at boosting earnings.
Agriculture PS Paul Ronoh yesterday said the government plans to ride on the African Continental Free Trade Area (AfCFTA) pact to increase exports to the African market, the country’s biggest export market.
It has also entered into 23 bilateral agreements on agriculture and other related programmes with China, which it expects to attract Chinese Foreign Direct Investments.
“So there is already a growing engagement and partnership with China. They have the technologies, they are ahead in some of the machinery and mechanisation programmes which can assist us to really utilise those facilities and reach our full potential. At the same time, China is also a big market,” Ronoh said.
Other sectors targeted for value addition include the leather and meat industries.
Over 500 Chinese firms are operating in the country. Kenya has secured Sh106.7 billion from seven Chinese companies, funds that will boost the manufacturing, agriculture, and tourism sectors.
In April this year, the government secured Sh106.7 billion from seven Chinese companies, funds that will be invested in the manufacturing, agriculture and tourism sectors.
The government has been pushing for local value addition and reducing the export of raw materials which have over the years denied the country maximum profits.
Last year, total earnings from marketed agricultural production increased by 7.2 per cent to Sh690 billion, the Economic Survey 2025 indicates.
Earnings from horticulture however recorded a decline of 12.8 per cent to Sh136.6 billion during the period under review, mainly blamed on rejection in the EU markets due to standards.
“The agriculture sector accounts for over 22 per cent of Kenya’s GDP directly and an additional 27 per cent indirectly, employing more than 40 per cent of our population and more than 70 per cent of rural communities. Yet, we face challenges such as weather volatility, low productivity, climate impacts and the pressure to feed a rapidly growing population,” the PS noted.
He affirmed the government’s commitment to invest more in the sector.
Some of the incentives the government is extending to investors include tax breaks in Special Economic Zones and Export Processing Zones.
The PS spoke during the Agri-Africa Exhibition briefing meeting, ahead of the main expo set for October.
Agri-Africa Exhibition Limited, in partnership with Hongxing International Exhibition Co., Ltd. (HXIE), will be hosting the second edition of the Africa International Agricultural Expo (AIAE) in Nairobi between October 28–31, at the Kenyatta International Convention Centre (KICC).
The 2025 AIAE aims to position itself as a leading platform for advancing Africa’s agricultural transformation through innovation, partnership and market access.
“This is more than just an exhibition it is a multi-stakeholder platform for solutions,” said Tito Mutai, CEO of Agri-Africa Exhibition, “We are not the solution to Africa’s agricultural challenges. We are the platform that brings the right people together innovators, farmers, policy-makers, investors so that solutions can be found collaboratively.”
Africa holds 60 per cent of the world’s uncultivated arable land yet remains a net food importer.
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