Agriculture Cabinet Secretary Mutahi Kagwe has unveiled an ambitious Ksh1.47 trillion plan aimed at transforming Kenya’s agricultural sector and creating more than 2.4 million jobs over the next five years.
The initiative, dubbed the Kenya AgriConnect Compact, was launched in Nairobi on Wednesday and is expected to drive a shift from traditional subsistence farming to a more commercial, technology-driven and climate-smart agricultural economy.
The plan comes at a time when the government is under pressure to create employment opportunities for thousands of young Kenyans entering the labour market every year while also strengthening the country’s food security.
Speaking during the launch, Kagwe said the strategy is designed to position agriculture as a major driver of economic growth and investment.
“The AgriConnect Compact positions agriculture not as a subsistence sector, but as a modern, technology-enabled, climate-smart and investment-ready engine for inclusive economic transformation,” he said.
At the heart of the programme is the creation and upgrading of about 2.48 million jobs by 2030. The opportunities are expected to be spread across agro-processing, logistics, agribusiness management and emerging digital supply chain services.
The government plans to commit Ksh491.72 billion in public funding to support the initiative, with the investment expected to attract an additional Ksh984 billion from private investors.
Officials say the funding model will rely heavily on public-private partnerships, blended financing arrangements and credit guarantee programmes aimed at encouraging financial institutions and investors to put more money into the agricultural sector.
For many farmers, access to affordable financing has remained one of the biggest challenges limiting expansion and productivity. The government hopes the new framework will make the sector more attractive to lenders and unlock fresh investment.
The strategy also seeks to reduce Kenya’s dependence on imports of key food commodities. Under the plan, the government is targeting a 50 per cent reduction in imports of staples such as maize and rice while increasing high-value agricultural exports by 60 per cent.
The announcement comes against the backdrop of concerns over rising food prices. A recent Central Bank of Kenya survey indicated that many Kenyans expect the cost of several basic commodities to increase in the coming weeks due to global supply chain uncertainties linked to the ongoing conflict involving the United States, Israel and Iran.
Apart from production, the AgriConnect Compact focuses considerably on technology. The government is set to develop digital extension services, enhance agritech platforms, and modern processing technologies geared towards minimizing post-harvest losses worth billions of shillings yearly.
Market access will also get a considerable push with the creation of digital marketplaces, enhanced infrastructure, and trading systems that can assist farmers in securing better prices for their produce.
According to the government, such an approach will help solve long-running issues that have exposed farmers to poor marketing and exploitation by unscrupulous middlemen.
Some of the sectors considered high-value under this initiative include dairy, edible oils, and horticulture, which, according to officials, are capable of attracting investments and increasing exports.
The strategy enjoys backing from various development partners, among them the World Bank, International Fund for Agricultural Development (IFAD), African Development Bank, the Gates Foundation, and the Alliance for a Green Revolution in Africa (AGRA). In addition to the above partners, it has received support from the National Treasury.
If successful, this program will change the face of agriculture in the country, offering employment opportunities for the youth while ensuring production and increased income for farmers.
