Agriculture Cabinet Secretary Mutahi Kagwe has announced plans by the government to make more than 1.5 million acres available for private sector investment in large-scale farming.
This is part of its efforts to boost food security, create jobs and reduce Kenya’s heavy reliance on food imports.
The CS reaffirmed the government’s commitment to strengthening partnerships with the private sector in transforming Kenya’s agricultural sector through Public-Private Partnerships (PPPs).
Speaking during the 5th National Agribusiness Summit organised by the Agriculture Sector Network in Nairobi, Kagwe said the sector’s future lies in private sector-driven growth.
“This sector is largely driven by the private sector and we will continue to rely on them to grow agricultural businesses to provide food security and create jobs,” said Kagwe.
“It is the private sector that will provide the backbone we are looking for.”
Some of the private investments include strategic value chains such as rice, wheat, edible oils and pyrethrum.
“We spend about Sh500 billion every year importing food,” he said. “If we produce locally instead of importing, we will save foreign exchange, stabilise the shilling and strengthen the economy.”
The CS said several parcels of land, including those under the Agricultural Development Corporation (ADC) and prisons farms are being prepared for commercialisation.
“Counties such as Homa Bay and Migori are already seeking investors to grow palm oil. We have sufficient land in the country to do what we need to do,” he said.
Kagwe also cited the privatization of the sugar and pyrethrum industries as examples of policy shifts designed to transfer management from government to private hands for efficiency and profitability.
“This is not by mistake, it is policy,” he said. “We are moving sugar and pyrethrum from government management to private sector management.”
The CS announced the creation of a Land Commercialisation Initiative Office within the
ministry to serve as a one-stop centre for investors seeking to engage in
agriculture.
“We will boost this office to make it easier for investors to get all the answers they need in one place,” he said.
ASNET chairman Bimal Kantaria praised the government for maintaining open engagement with the private sector, saying the collaboration has improved significantly under the current administration.
“This government has been very open to private sector discussions,” Kantaria said. “After a long time, we now have a very progressive leadership in the Ministry of Agriculture.”
Kantaria pointed out sugar, fertiliser and digital innovation as key areas where collaboration is yielding results.
“The privatisation of the sugar sector is already bearing fruit. By next year, we hope Kenya will start exporting sugar,” he said.
“We also urge the government to expand the fertiliser subsidy basket to include soil conditioners such as lime and to fast-track the e-voucher programme to help farmers make their own purchasing decisions."
On youth involvement in agriculture, Kagwe urged older farmers to hand over farms to the younger generation who, he said, are more innovative and tech-savvy.
“There are opportunities in agriculture for the youth, especially in value addition,” he said. “I know it’s difficult, but it’s time for my generation to pass the torch. The young people are more determined, more knowledgeable and can do a better job than we can.”
The two-day National Agribusiness Summit brought together policymakers, private investors, and farmer organizations to discuss strategies for strengthening Kenya’s agricultural value chains through innovation and partnerships.
