Agriculture sector struggled in past year, shows economic survey

Agriculture recorded mixed performance over the past year, driven by external market conditions and internal challenges such as weather variability, regulatory constraints, and logistical setbacks, according to the Economic Survey 2025.

Kenya's export of fresh horticultural products including cut flowers, fruits, and fresh vegetables declined in 2024. The survey shows export volumes dropped by 14.1 per cent, from 468.4 thousand tons in 2023 to 402.2 thousand tons in 2024. Export earnings fell by 12.8 per cent, from Sh156.7 billion to Sh136.6 billion. It attributed the decline largely to air cargo export restrictions at Jomo Kenyatta International Airport, which led to increased freight costs due to high demand for limited cargo space.

“Earnings for cut flowers decreased slightly from Sh73.5 billion in 2023 to Sh72.1 billion in 2024. This marginal decline was influenced by stringent European Union regulations on False Codling Moth, leading to higher rejection and interception rates,” the survey says.

“Revenue for fresh vegetables declined sharply from Sh50.9 billion to Sh23.4 billion due to interceptions related to Maximum Residue Levels. EU concerns over pesticide residues in beans and peas further hampered export volumes.”

But fruit exports grew by 26.5 per cent, with earnings increasing from Sh32.4 billion in 2023 to Sh41 billion in 2024, as a result of strong demand and improved compliance with market standards.

The sugarcane sector saw a notable recovery in 2024, following disruptions from mill closures between July and November 2023. The area under cultivation expanded by 13.2 per cent to 293.3 thousand hectares, while the harvested area surged by 62.1 per cent to 134.9 thousand hectares.

“Total cane production rose from 5.6 million tons in 2023 to 9.4 million tons in 2024, almost doubling due to the availability of mature cane and favourable weather conditions,” the report states.

“The average yield increased from 56.9 tons per hectare to 61 tons per hectare, underscoring improved agronomic practices and better weather.”

Production of dry flowers pyrethrum declined by 2.7 per cent to 1,634.0 tons in 2024 due to erratic weather, seedling distribution challenges, and reduced farmer participation.

“Despite a slight 1.0 per cent increase in the average price per kilogramme, to Sh308, earnings from dry pyrethrum dropped from Sh512.4 million in 2023 to Sh503.4 million in 2024.”

The Economic Survey 2025 shows that rice production benefited from expanded irrigation infrastructure, particularly in schemes supported by the National Irrigation Authority.

“The area under cultivation grew from 38,942 hectares in 2022-23 to 43,057 hectares in 2023-24, leading to a 23.2 per cent increase in paddy production to 282.2 thousand tons. New clusters of irrigation schemes such as Taveta, Anyiko, Kimira, Oluch, and Nanundu Manya were integrated into rice production.”

Bura and Tana irrigation schemes experienced production declines of 38 per cent and 30.4 per cent respectively due to severe drought that disrupted water supply from River Tana.

Kenya’s dairy sector is on the upward trend. The survey showed a 17 per cent increase in milk production, prices, and processing, which is driven by higher farm-gate prices and growing consumer demand.

The livestock sector recorded a strong rebound in 2024, with total earnings rising by 17.2 per cent to Sh235 billion. The total milk production rose slightly by 1.0 per cent to reach 5.33 billion litres in 2024. The volume of marketed milk increased by 12.0 per cent to 908.4 million litres, due to higher demand and improved supply chain efficiency.

“This growth signals confidence in the dairy sector and improved access to markets for smallholder farmers,” said an official from the Kenya Dairy Board. “With better farm-gate prices and improved processing capacity, we expect this trend to continue.”

Meanwhile, Kenya’s livestock slaughter statistics show a broad-based recovery across species. Cattle and calves slaughtered rose 17.9 per cent to 2.24 million head. Sheep and goats slaughtered increased to 10.7 million head, up from 9.9 million. Pig slaughter climbed 7.9 per cent to 664,900 head. Camels slaughtered surged 29.9 per cent to 239,000 head.

However, the survey noted that no donkeys were slaughtered in 2024, in compliance with the national ban, which remains in effect.

There were more male students enrolled in agriculture-related courses in 2024 than in the previous year, with male students continuing to outnumber their female counterparts.

Total enrolment in agricultural training programmes nearly doubled, rising from 11,994 students in 2023 to 23,121 in 2024. The increase was seen largely in public universities, while enrolment in private universities and diploma programmes declined.

The report indicated that 8,311 male students and 3,683 female students enrolled in agricultural training courses in 2023. The number nearly doubled in 2024, where 13, 859 male and 9,262 female students enrolled for the courses. In total, 23, 121 students enrolled in agriculture training courses in 2024 compared to 11,994 in 2023.

At the degree level, enrolment almost doubled from 12,391 students in 2023 to 23,500 students in 2024, across the various institutions. Enrollment in private universities was lower in 2024 at 379 students while in 2023 it was at 397.