State turns to private sector to drive agricultural transformation
Kagwe said the new approach will focus on large-scale farming and value chain development to address food shortages, stabilise the economy, and create employment opportunities.
The government has unveiled a plan to make more than 1.5 million acres of land available for private sector investment in a major drive to enhance food production and reduce reliance on imports.
Agriculture Cabinet Secretary Mutahi Kagwe said the initiative is part of broader efforts to revitalise Kenya’s agricultural industry through collaboration between the State and private investors.
More To Read
- Private sector activities rise for the first time in five months in September
- Kenya battles aflatoxin in dairy feeds to protect milk exports and boost quality
- How farmers are integrating modern, traditional farming models to beat food insecurity
- Kenya losing over Sh18 billion annually to tsetse fly-linked livestock diseases — CS Kagwe
- Kenya poised for record maize harvest of 70 million bags in 2025- Kagwe
- Kenya scraps taxes on packaging materials to boost tea exports
Kagwe said the new approach will focus on large-scale farming and value chain development to address food shortages, stabilise the economy, and create employment opportunities.
He noted that the government is prioritising partnerships that can help the country move towards self-sufficiency in food production.
Speaking at the 5th National Agribusiness Summit in Nairobi, organised by the Agriculture Sector Network (Asnet), Kagwe said the government intends to use Public-Private Partnerships (PPPs) to unlock the potential of the agriculture sector.
“The private sector is at the heart of our agricultural transformation. It will provide the foundation we need to build strong, efficient and sustainable food systems,” Kagwe said.
He added that the ministry is already preparing large tracts of land, including those managed by the Agricultural Development Corporation (ADC) and prison farms, for commercialisation.
“Counties like Homa Bay and Migori have already expressed interest in attracting investors to develop palm oil projects,” he said.
The CS emphasised that Kenya spends close to Sh500 billion each year importing food products that could be produced locally.
“If we grow what we consume, we will save foreign exchange, protect our currency and strengthen our economy,” he said.
Kagwe said the shift towards private management in sectors such as sugar and pyrethrum reflects a deliberate policy aimed at increasing productivity and efficiency.
“We are deliberately moving these sectors from government control to private management because that’s where sustainability lies,” he said.
To make investment easier, Kagwe announced the creation of a Land Commercialisation Initiative Office in the ministry to act as a one-stop centre for local and international investors.
“This office will ensure that investors can easily access information and guidance without unnecessary delays,” he said.
Asnet chairman Bimal Kantaria lauded the government for its open-door policy with the private sector, saying the collaboration has led to significant progress in areas such as sugar reforms, fertiliser distribution, and digital innovation.
“This government has allowed consistent dialogue with the private sector, which has created a new wave of confidence,” said Kantaria.
He added that the ongoing reforms in the sugar industry are already yielding results and expressed optimism that Kenya could resume sugar exports as early as next year.
Kantaria also called on the government to broaden the fertiliser subsidy programme to include soil conditioners such as lime and accelerate the rollout of the e-voucher system to empower farmers to make independent choices.
Top Stories Today
