Agriculture remains the backbone of Kenya’s economy, contributing about 21.0% to GDP directly and another 27.0% indirectly through linkages with other sectors, according to the Kenya National Bureau of Statistics (KNBS). Despite this importance, the sector is undercapitalized, under-mechanized and often overlooked by young investors. Yet, agribusiness presents some of the most promising opportunities for wealth creation and economic transformation.
Kenya’s export earnings from agriculture, particularly horticulture, tea and coffee, continue to perform well. In 2023, horticultural exports brought in KES 153.7 billion, up from KES 147.0 billion the previous year. Global demand for avocados, macadamia nuts and herbs is rising and Kenya’s climate gives it a competitive edge. However, smallholder farmers who produce over 70.0% of the country’s food, lack access to markets, quality inputs and affordable financing.
The rise of agritech startups such as Twiga Foods, Apollo Agriculture and iProcure is beginning to change this narrative. These platforms use mobile technology, data analytics, and logistics networks to improve farmers’ access to inputs, finance and markets. Investors can now participate in agriculture indirectly by supporting these ventures or investing in value chains like food processing, storage and distribution.
Contract farming and land-leasing models are also opening the door for urban investors to venture into agriculture without owning large tracts of land. In counties like Kirinyaga and Nakuru, greenhouses and drip irrigation systems have made it possible to generate high returns from small plots. Moreover, Kenya’s growing urban middle class is driving up demand for clean, traceable and processed food, boosting investment potential in agro-processing.
Government support remains critical. The Agricultural Sector Transformation and Growth Strategy (ASTGS) 2019-2029 aims to modernize farming through public-private partnerships, subsidies and infrastructure investments. Investors stand to benefit from incentives such as tax exemptions on agro-equipment and grants under youth empowerment funds.
In a country where 75.0% of the workforce relies on agriculture either directly or indirectly, investing in agribusiness is not just profitable, it’s nation-building. With the right tools, policies and innovation, Kenya can transform agriculture from a subsistence struggle into a sustainable, scalable, and lucrative venture
