New Release
The Kenyan Agriculture Industry (“the Industry”) has grown significantly at a compounded annual growth rate (CAGR) of 9.1% over the last five years (2019-2023) driven by favourable weather conditions and government interventions. The Industry’s contribution to GDP was projected to remain upbeat at 22.5% in 2024 and rise to 23% by the end of 2025 owing to favourable weather conditions, the ongoing fertilizer subsidy program by the Government of Kenya, the emergence of new markets and the government’s initiative to boost tea value chain through blending and branding. The key segments of the Industry include crop production, animal rearing, fisheries and forestry activities. Industrial crops, the primary driver of the crop production segment, account for 70% of agriculture exports and this includes tea, coffee, sugarcane, cotton, pyrethrum, tobacco, wheat, coconut and flowers. The Kenyan tea industry contributes around 5.7% of agricultural GDP and 23% of export earnings. Tea is primarily grown in the highlands of the East and West Rift Valley regions, spanning 19 counties. Coffee is another vital export and revenue generator for Kenya, contributing about 1.1% of agriculture GDP. Coffee farming takes place at both smallholder and estate levels across 33 counties, with the top five coffee-producing counties contributing a significant 70% of the total output.
The 2024 Kenya Agriculture (Commodities – Tea and Coffee) Industry Risk Report captures the following:
