Vision 2030 economic pillar – Agricultural : The sector has for many years formed the backbone of Kenya’s economy, contributing about 24 per cent of the Gross Domestic Product (GDP) and accounts for 80 per cent of national employment, mainly in rural areas.
Agriculture also contributes more than 60 per cent of the total export earnings and about 45 per cent of government revenue, while providing for most of the country’s food requirements. The sector is estimated to have a further indirect contribution of nearly 25 per cent of GDP through linkages with manufacturing, distribution, and other service related sectors.
Agriculture directly influences overall economic performance. Periods of high economic growth rates have been synonymous with increased agricultural growth.
The sector recorded a subdued growth rate of negative 2.7 per cent in 2009 up from negative 4.3 per cent in 2008. Prices of most agricultural commodities also surged in keeping with the decline in output. It recoded impressive performance in 2010/11, with value added at constant prices increasing by 6.5 per cent from Kshs288 billion ($3.4 billion) in 2009 to Kshs307 billion ($3.6 billion) in 2010. This turnaround was mainly driven by favourable weather, provision of low priced certified seeds and fertiliser, as well as the economic stimulus programme.
There was increased growth in volumes of marketed livestock products, but with subsequent decline in value of the products due to glut.
In terms of the flagship projects, a comprehensive analysis of the legal and regulatory framework in agriculture has been carried out.
A total of 178,383 metric tones of fertilizers were distributed to farmers in 2009 against the MTP target of 200,000 metric tonnes.
Towards the end of 2011, the country experienced extreme weather changes that resulted in severe drought in most parts of the country.
Rising fuel prices and high exchange rates adversely affected the sector’s performance.
A proposal on fertiliser manufacturing has been drafted and is under review. Electronic animal identification system has been developed, piloted and 302 stakeholders sensitised.
Envirorunental impact assessment of zoning and drafting of zonal policy legislation have started. Four draft bills on the proposed reforms were also developed.
Agriculture continued to face several challenges that constrained its productivity and competitiveness. They included low and declining soil fertility; high cost, adulteration and low application of key inputs; slow absorption of modern and appropriate technology; and poor disaster preparedness and response.
Others are limited capital and inadequate access to affordable credit; pre~ and post harvest losses; inadequate markets and poor marketing infrastructure; weak quality control systems; inappropriate legal and regulatory framework; and low budgetary provision.
inadequacies in the policy, legislative and regulatory framework, poor governance and mismanagement of some cooperative societies, and weak internal capacity for marketing of cooperative products and services dampened the growth and development within cooperatives.
