Kenya's value chain agricultural farmers seek funds to enhance output

Kenya's value chain agricultural farmers are seeking more resources to help boost production and improve existing agro processing firms to enable them undertake value addition of locally produced commodities.

A new report on Kenya agro-processing industry reveals that lack of finances coupled with poor technology is curtailing full utilization of agro-processing industry potential.

The report which was launched in Nairobi on Wednesday states that the agro processing industry is grappling with low level of investments.

Gloria Otieno, one of the authors of the report noted that policies on climate change, trade and food security are not integrated thus leading to stumpy production and low incomes to farmers and traders.

"There is need for resource mobilization to up-scale production and upgrade existing firms so as to ensure that the potential for the industry is fully utilized, especially in the banana and cassava subsectors," Otieno said.

"There are existing structural inefficiencies with respect to the functioning of value chains, specifically the way the sectors and ancillary support sectors such as packaging, labeling branding and marketing support," she added.

Booker Washington who co-authored the report stated that government and financial institutions need to make credit more accessible to Small and Medium Enterprises (SMEs), producer groups and women engaged in agro processing.

"This can be achieved by lowering interest rates and providing innovative loan packages for entrepreneurs specifically those working in groups or cooperative societies," said Booker.

Kenya's export destination market remains quite narrow, with over 70 percent of total exports being destined to 12 countries globally, she noted.

Booker said even though youth involvement in agriculture is low, the gap can be remedied by channeling the youth fund to agricultural and processing activities at county level.

Agriculture Principal Secretary Richard Lesiyampe revealed that the government will soon start providing more smallscale farmers with appropriate agro-processing machines to enhance value addition of locally produced commodities.

The machines he explained will help in advancing value addition of local products with a view to attracting premium prices at the local, regional and global markets.

He confirmed the agro-processing machines will be distributed to farmers in the cassava, mangoes, bananas and rice sub sectors.

Currently, he noted most of the agricultural exports such as coffee, tea, horticulture, cassava, mangoes and bananas are semi-processed and hence have low market value.

"Enhancing our products will enable us attract premium prices and equally we will also expand our regional and global markets," said Lesiyampe.

"Agro-processing and other value addition processes in agriculture, increases the competitiveness of our agricultural products in the local, regional and international markets. The ministry has however adopted strategies that will enable the country to capture a greater percentage of value addition," he added.

The government is establishing agro-technology incubation centers, for example, in Siaya, Makueni and Nandi counties and supporting cottage processing concept in counties that produces mangoes, Cassava, Aloe-Vera, ground nuts, bananas, and cereals, he added. Endit