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Agriculture As Kenya’s Major GDP Contributor

Benson Muriithi by Benson Muriithi
February 21, 2023
in News
Reading Time: 2 mins read
Agriculture And Economy

Agriculture And Economy [Photo/Courtesy]

Agriculture is the largest sector of Kenya’s economy and the main contributor to the country’s Gross Domestic Product (GDP). The sector employs over 40.0% of the country’s population and accounted for 14.8% of Kenya’s GDP in Q3’2022.

Agriculture is an essential sector of Kenya’s economy as it contributes significantly to the country’s food security. The sector provides a source of livelihood for millions of people and plays a crucial role in poverty reduction.

Agriculture in Kenya is diverse and includes crops such as tea, coffee, maize, horticulture, and livestock production. Tea and coffee are significant cash crops that earn the country foreign exchange through exports.

Kenya is one of the world’s largest producers of tea and coffee, and these crops have played a vital role in the country’s economy for decades.

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Agriculture is the primary source of raw materials for Kenya’s agro-processing industries, such as sugar and flour milling, dairy processing, and food canning.

These industries add value to agricultural produce and create employment opportunities, which contribute to the country’s GDP. The agro-processing industries are crucial in reducing post-harvest losses and ensuring food security by preserving and extending the shelf life of the products.

Additionally, agriculture is a significant contributor to Kenya’s tourism industry, which is also a critical source of foreign exchange earnings. The country’s wildlife and parks, such as the Maasai Mara Game Reserve, are major tourist attractions.

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The wildlife and parks are mostly located in areas dominated by pastoralists and agro-pastoralists who practice livestock production. As such, the promotion of the tourism industry creates a direct linkage between agriculture and the hospitality industry, which contributes to the GDP.

Lastly, agriculture contributes to Kenya’s industrialization by providing the necessary raw materials for the manufacturing sector. Agriculture is a source of natural fibers, such as cotton and sisal, which are used in the textile industry. In addition, the sector provides timber, hides and skins, and leather, which are used in the furniture and shoe-making industries.

These industries create employment opportunities and contribute to the country’s GDP by adding value to the raw materials from agriculture.

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