Kenya's government is increasing its focus on value addition and local consumption of agro-products as part of its industrial development strategy. Trade and Industry Cabinet Secretary Lee Kinyanjui said the approach targets crops such as macadamia and avocado, with an emphasis on building agro-business capacity.
Speaking during a visit to Kakuzi Plc in Murang'a County, Kinyanjui noted the potential to expand domestic production from macadamia and other crops. He stated that local production could support import substitution and reduce reliance on imported agricultural products.
Kakuzi is the largest avocado producer in Kenya and operates the country's largest single macadamia orchard estate. The company plans to increase its export capacity to more than US$100 million annually in the medium term. It also plans to invest more than US$15 million this year to expand its blueberry production area from 10 hectares to 100 hectares.
Kinyanjui stated that Kenya is positioning itself as a producer of so-called superfoods in response to global demand trends. "Demand for food will always be there, even in difficult times such as war. I commend Kakuzi for the great work. As they expand, they also create employment opportunities," he said. He added, "The government will continue to support investors in exports. As we open up international markets through economic partnership agreements, we must also ensure we have enough produce to meet demand."
The government estimates that Kenya spends more than KSh 500 billion (US$3.4 billion) annually on agricultural imports. Policy measures are aimed at shifting the economy towards increased domestic production and exports of value-added agricultural products.
Kakuzi Managing Director Chris Flowers said the company is implementing a diversification strategy focused on product development and market expansion. He indicated that Kenya has the geographical position to supply markets in the Far East, the Middle East, Europe, and the U.S.
"The Kakuzi business growth and diversification plan is firmly anchored in positively contributing to the development and promotion of locally produced, export-grade, quality, value-added products," Flowers said.
Kakuzi has integrated a macadamia processing plant. The facility has an installed capacity of 2,000 tons of saleable kernel, positioning it among the larger processing operations in the country.
Source: KBC
