By W, KNA
The government is restructuring the agriculture sector to enhance efficiency and productivity across the entire value chain, from research, production, and harvesting to processing, marketing, consumption, and export.
Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe said the overarching goal is to make every acre of Kenyan soil productive, every farmer visible, and every harvest more valuable.
Speaking during the 5th National Agribusiness Summit in Nairobi, Kagwe emphasised that the private sector remains central to government policy and implementation in driving food security and economic growth.
“We cannot continue spending Sh500 billion annually on food imports. It is unsustainable, drains our foreign exchange reserves, denies our youth employment, and undermines our farmers’ efforts,” said Kagwe.
He explained that the government is incentivising the private sector to locally produce key food and industrial crops such as rice, wheat, palm oil, cotton, sugarcane, and livestock feed—through the Land Commercialisation Initiative (LCI). The programme leases idle land on a long-term and affordable basis to bridge the gap between production and consumption.
“We are also leasing loss-making government-owned firms in the sugarcane, cotton, and pyrethrum value chains to the private sector to free up public funds. These are resources that would otherwise go into endless subsidies with no meaningful turnaround,” Kagwe added.
He revealed that over 1.5 million acres of land are available across national and county levels for agricultural investment, which could significantly boost local food production.
Kagwe noted that the agriculture sector is largely driven by the private sector and remains a key contributor to job creation and national food security.
“It is the private sector that will drive agricultural transformation. We have already transferred sugar management to private players and will do the same with pyrethrum. This is not a mistake—it’s policy. We also seek to integrate private-sector ideas into government planning,” he said.
The CS highlighted the government’s collaboration with the Agriculture Sector Network (ASNET), an umbrella body that brings together agricultural stakeholders to harmonise operations, share ideas, and shape sectoral policies.
He added that within the Ministry, the Land Commercialisation Initiative Office will be expanded into a one-stop investment centre where local and international investors can access all necessary information and guidance on agricultural ventures.
“Our country has vast tracts of arable land, and we are calling on investors to utilise these opportunities. We are committed to providing the right environment for agribusiness to thrive,” Kagwe affirmed.
ASNET Chairman Bimal Kantaria commended the government for fostering strong engagement with the private sector over the past three years.
“We have had regular presidential roundtable meetings with CEOs from both health and agriculture sectors. The collaboration between government and private sector has been very strong, particularly under the current administration,” said Kantaria.
He pointed to the privatisation of sugar mills as a success story that could soon see Kenya transition from an importer to an exporter of sugar.
“The private sector’s participation in sugarcane production has been robust, and we appreciate the fertiliser subsidy programme. However, we urge the government to widen the input basket to include soil conditioning materials such as lime,” he added.
Kantaria also appealed for interventions to lower the cost of doing business, noting that large-scale production in crops such as wheat and rice is key to enhancing mechanisation and competitiveness.
“In Kenya, we produce only 10 percent of our wheat and 20 percent of our rice, importing 90 percent and 80 percent respectively. We must prioritise these sectors to reduce import dependency and strengthen local production,” he said.
Kantaria emphasised that access to affordable land and input incentives will attract more investors into commercial agriculture, helping Kenya move from promise to action in achieving food self-sufficiency.
The 5th National Agribusiness Summit 2025, held under the theme “From Promise to Action: Advancing Agribusiness through Dialogue and Innovation,” brought together key policymakers, private sector leaders, and development partners to explore strategies for boosting agribusiness competitiveness and food security.