Industry Analysis

Kenya Agriculture Sector Opportunities and Challenges-AmCham Position Paper

Prepared By AmCham-Kenya and USAID - 2024
The AmCham Kenya Agriculture Sector Policy Position Paper presents a thorough analysis of the constraints and opportunities facing the country’s agriculture sector, which contributes over 30% of GDP, accounts for 65% of export earnings, and employs about 40% of the workforce. Developed through extensive research and consultations with AmCham members and stakeholders, the paper identifies key policy hurdles limiting private-sector investment and sector growth, including regulatory inefficiencies, fragmented input support programs, limited access to finance, and underdeveloped market systems. The paper situates these challenges within the broader context of Kenya’s Bottom-up Economic Transformation Agenda (BETA) and the Agricultural Sector Transformation and Growth Strategy (ASTGS), which prioritize agriculture as a strategic pillar for inclusive economic growth. 

It emphasizes the need to strengthen aggregator functions driven by farmer-facing SMEs, improve input subsidy programs, and enhance infrastructure and value chains to support smallholder farmers and commercial enterprises alike. The paper also underscores opportunities for innovation, digitalization, and climate-smart agriculture to build resilience and sustainability. By addressing these policy gaps and fostering stronger public-private partnerships, the position paper aims to unlock the agriculture sector’s full potential to drive food security, export competitiveness, and economic transformation in Kenya.

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