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Government of Kenya |

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Dr Sheila OchugbojuTransformative Science &

Urban Resilience

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Agenda

Why Kenya

Why the “New Kenya”

Why Agriculture in the “New Kenya”

How Government is Enabling Private Sector Investment in Agriculture

What are the Investment Opportunities

What are the Next Steps for Investors

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Government of Kenya |

Investment Potential in Kenya’s Agricultural Sector2014 Grow Africa Investment Forum

Government of KenyaMay 2014

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Strong and Large Regional Player Growing Consumer Market

Kenya has the second largest population within the EAC at ~43 MN and is growing at a rate of 2% p.a.

There is a rising trend towards urbanisation which is contributing to an increase in consumer demand for high value goods and services– This trend is forecast to continue, with 50% of the

population expected to live in urban areas by 2050 The size of Kenya’s middle class is growing as

evidenced by the growth in its GNI per capita, which has increased at a CAGR of 2% over the past 10 years

Kenya is the dominant economy in Eastern Africa, contributing to more than 40% to the region’s GDP

Kenya is likely to be deemed the fourth largest economy in Africa upon the completion of a review of its national economic data, which will enable the country to achieve its “Vision 2030” development objective to become a middle-income country well before the 2030 target

Comparative GDP, Current USD BN, 2012

Source: World Bank 2014; Economic Outlook – Accelerating Growth Faces Significant Headwinds, Business Monitor International, 2014

Kenya is the largest economy in the East African Community (EAC) with strong growth prospects supported by an emerging, urban middle class with an increasing appetite for high-value goods and services

Why Kenya?East Africa’s Growing Economic Giant

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Kenya GDP USD BN, 2008-2012

Urban Population as a % of Total Population, 2009-2012

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Note: 1African headquarters refers to multinational companies with continent-wide or regional headquarters in KenyaSource: World Bank; Economic Outlook – Accelerating Growth Faces Significant Headwinds, Business Monitor International, 2014; 2013 Investment Client Statement - Kenya, Bureau of Economic and Business Affairs, 2013 ; Private Equity Africa, 2014

Kenya’s investment climate is the strongest in the EAC, with FDI flowing in from emerging and developed markets and a high volume of multinationals with regional and continent-wide headquarters in the country

Why Kenya?Favourable Investment Environment

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Positive Investor Sentiment

FDI Inflows, USD MN

Multinationals with African1 Headquarters in Kenya

FDI has been on the rise and is significantly stronger than investment in other EAC countries

Given its position as the economic, commercial, and logistical hub of East Africa, private equity capital is now flowing into Kenya

In 2013, Kenya was the top destination for international investors in the Eastern Africa Region after attracting 12 private equity deals

valued at over USD 110.5 million

Recent Landmark Investments

One of the largest greenfield projects in Africa by Kwale International Sugar Company for a $200 million sugar processing facility in Ramisi, due for completion in June 2014

One of the biggest wind projects in Africa, by Harith General Partners for a $870m wind project in Lake Turkana

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Agenda

Why Kenya






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Empowered by a new constitution and administration, the national and county governments are approaching the private sector as a central partner in the development and growth of the Kenyan economy

Why the “New Kenya”?The Government is Thinking Differently

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A New Approach to the Private Sector

The new Jubilee Administration regards the private sector as a key centre of economic

and social development and has signalled this shift in government’s orientation through the divestment of its majority shareholding in state commercial companies through the

Nairobi Securities Exchange

A New Government

Kenya is making efforts to lower the cost of doing business by conducting extensive business regulatory reforms intended to

substantially reduce the number of licensing requirements and to make the licensing

regimes more transparent and focused on legitimate regulatory purposes

Business Environment Reforms

Kenya has fully liberalised its economy and removed all obstacles that previously

hampered the free flow of trade and private investment, such as exchange controls, import and export licensing, as well as

restrictions on remittances of profits and dividends

Open Market Access System

Empowered by the new constitution, devolution offers an opportunity for

investment through localised innovation with scale through collaboration by building commercial ecosystems in each county that

expand employment opportunities and empower local communities

Devolution into County Governments

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Why the “New Kenya”?Infrastructure Development is Transforming the Landscape

$366MN

$360MN

Kenya’s landscape is also undergoing significant transformation as evidenced by commitment of over USD20 billion towards infrastructure development through public private partnerships

Increasing investment in infrastructure

under PPP arrangements

Infrastructure Strategy Key Infrastructure Development Projects

Sources: Vision 2030; Ministry of Industrialization; Office of the Deputy President of Kenya; Trademark East Africa

$14.5BN

$5.5BN

$2.6BN

Lamu Port Southern Sudan Ethiopia Transport Corridor: Investments in power and energy infrastructure istaking place

Standard Gauge Railway: Railway systems around Nairobi, connecting Mombasa to Malaba/Kisumu to be complete in 2018

$360MNJomo Kenyatta International Airport Expansion: Construction of a 178,000sqm facility to be complete in 2017

~$260MN

Inland Fibre Network Infrastructure: Expansion of inland fibre network by operators such as MTN, Safaricom and Telkom Kenya

Mombasa Port Expansion: Harbour channel deepened by 15m and widened to 500m to accommodate larger vessels

Thika Superhighway: Construction of the eight-lane controlled-access 50-km Nairobi–Thika superhighway was completed in 2012

Konza Technology City “Silicon City”: IT Hub to be built on 5000 acres of land in Machakos

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Why the “New Kenya”?Africa’s Hub for a Green, Cost Effective Power Revolution

Increasing share of power generated from green and more

cost effective sources, with a

target to increase

electricity generation capacity by

5,000MW from the current 1,644MW to

6,700 MW in 40 months

Power & Energy Strategy Key Power Projects and Recent Resource Discoveries

Wind Power Project Water Discovery

Oil Discovery

Geothermal Power Project

Turkana County

Baringo

Lamu

MombasaNatural Gas Plant

Coal Power Plant

300 MW Lake Turkana Wind Power

Project valued at USD 823MN

Two new water sources at Turkana Basin and Lotikipi Basin holding 250bn m³ of water, sufficient to supply Kenya for 70 years

Discovery of reserves by Tullow oil, estimated to extract as much as

one billion barrels

3,000 MW Geothermal Power Project in Baringo valued at USD135MN,

700-800 MW Natural Gas Fired Plant near

Mombasa through a PPP

900 -1,000MW Coal Power Plant in Lamu

Kenya is also perfectly positioned to unleash Africa’s power generation capacity through its focus on green and cost effective sources of energy, set to contribute to a 5000MW increase in the national power grid

Sources: Vision 2030; Ministry of Industrialization; Office of the Deputy President of Kenya; Trademark East Africa

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Agenda

Why Kenya






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Within the EAC, Kenya is the regional leader for agricultural product exports

In Africa, Kenya is the leading exporter for floriculture

While Kenya is the third largest producer of tea globally, it is the number one exporter

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Leader in Agricultural Exports

Strategically Positioned for Trade

Abundant Human and Natural Resources

Data Request

Bordered by 5 countries within East Africa and boasting comprehensive air routes across the African region, Kenya is strategically positioned for regional and pan-African trade in agricultural commodities

Kenya is also internationally accessible via its ports, such as Mombasa and the planned Lamu port, that support extensive exports to a wide range of locations on and off the African continent

Source: World Bank, 2014; Trading Economics, Reuters, 2014; All Africa

Why Agriculture in Kenya?A Competitive and Attractive Agriculture SectorKenya has demonstrated its ability to be a regional leader in agriculture supported by its strategic location and abundant resources

Map

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*Burundi

WesternSahara

Zimbabwe

EgyptLibyaAlgeria

Tunisia

Morocco

Kenya

Ethiopia

EritreaNorth Sudan

Niger

Mauritania

Mali

Nigeria Somalia

Chad

Central AfricanRepublic

Uganda

Liberia

Sierra Leone

BurkinaGambia

Sao Tome & Principe

Equatorial Guinea

Djibouti

Senegal

Guinea Bissau

Canary Islands

Namibia

South Africa

Tanzania

Democratic Republic of the Congo

Angola

MadagascarBotswana

Zambia

Gabon

Swaziland

Lesotho

Malawi

Rwanda

BeninGhana

IvoryCoast

Guinea

Cameroon

Congo Republic

Comoros

Mozambique

TogoSouth Sudan

Total Agriculture Merchandise Export Value, USD MN, 2011

Kenya’s population is one of its most attractive resources, with a large number of well-educated professionals (4th highest literacy rates in Africa) and strong entrepreneurial tradition

Numerous professionals and higher learning institutions with strong research and technical expertise in the agriculture sector

Abundant biodiversity, with seven attractive agro-climatic zones

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Why Agriculture in Kenya?An Integral Sector for Economic and Social ProsperityAgriculture is vital to the success of the Kenyan economy because it is a priority contributor to the government’s economic and social objectives

The Importance of Agriculture

Economic Growth

Employment Creation

Food Security and Nutrition

In line with the tenets of Grow Africa, agriculture underpins the success of the Kenyan economy because of its role in creating sustainable and inclusive market based

growth and contributing to lasting poverty reduction

The success of Kenya’s agricultural sector is

essential to long term economic growth and

prosperity as the sector is the largest contributor to the

Kenyan economy, accounting for 26% of GDP

in 2012

Building commercially viable and strong capacity in agricultural production and agro processing will

enable Kenya to withstand global food shocks and

achieve sustainable food security and nutrition

Employment in agriculture, accounted for 60% of

employment in 2012, the largest contributor to total employment, which further highlights its value to the

economy’s success

Source: Economic Survey 2013, Kenya National Bureau of Statistics, 2013; Medium Term Expenditure Framework, 2012

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Why Agriculture in Kenya?A Strong Momentum towards Agro-processingAgro-processing is leading to accelerated growth through the increased contribution of the manufacturing and agriculture sectors, while multiple positive effects also accrue to the livelihoods of smallholder farmers

Benefits of Agro-Processing

Impact of Agro-processing on Smallholder Farmer Livelihoods

Effect on Economic Development and Growth

Enhanced Value Addition

Guaranteed Demand through Contract Farming

Access to Technical Assistance

Programs

Introduction of New Technologies

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Increased Revenue

Increased Employment

Food Security and Nutrition

Expanded Market Access

Reduced Post Harvest Losses

Community Development

GDP growth through increased

manufacturing and agricultural output

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Economic stabilisation and regeneration through increased employment and

inclusive wealth creation

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Integration into global markets by accelerating technical innovations,

promoting entrepreneurship and improving business

practices

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Source: IFAD database, The Economist 2012, FAO

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Agenda

Why Kenya






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How Government is Enabling Private Sector Investment in AgricultureApproaching Agriculture as a BusinessThe Government of Kenya has shifted its focus to enabling the private sector to become the primary engine of growth in agricultural production across a number of areas

The Government has Stopped… ….and is thus working on…

Creating new financial incentives and schemes for the private sector

Government recognises the following challenges…

Treating agriculture as a development project instead of a viable business venture

Implementing targeted policy reforms to support private sector development 1

Limited agro-processing capacity to take advantage of increased demand for value-added agricultural products

2Encouraging agro-processing through the development of special economic zones

3Untapped potential of irrigated land to expand and optimise production of crops, livestock and fisheries

Funding isolated projects in arbitrary value chains that do not grow agriculture in a measurable way

Crowding out the private sector, which has historically diminished the profit potential in agriculture

Enabling food security through various initiatives, including the Galana-Kulalu project irrigation scheme

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Focusing on value chains where Kenya has comparative advantage6

5Strengthening investment-driven strategic partnerships with the private sector

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How Government is Enabling Private Sector Investment in Agriculture Policy Reforms Enabling Competitive AgricultureThe Government has committed to implementing policy reforms across domains to make Kenya a competitive agricultural economy

Enhanced Business Environment Increased Private Participation in Production and Distribution of Inputs

Expanded Access to Financial Services Improved Food Security and Nutrition

Recent Policy

Reforms

Enhancements in the nutrition and yields of local varieties/breeds of crops, livestock and fisheries through research and extension services

Raised levels of strategic food reserves Establishment of a fund to purchase livestock from

drought stricken areas

Establishment of a Risk Sharing Facility, with an initial investment of USD 10MN over the next 3 years to unlock USD 50MN from commercial banks

Provision of rural credit for farming and promotion of micro-credit schemes through village community banks and holistic natural resource management

Enablement of farmers to access traditional financial services on their mobile phones through Kenya’s leading mobile innovations

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Provision of assistance in establishing producer and marketing associations

Introduction of the input subsidy programs which are in the process of being optimised to improve the access and affordability of inputs for smallholder farmers

Starting a business: Joint reform efforts by the national and county governments have reduced the average time to start a business by 22 days and the average cost by 5%

Enforcing Contracts: Kenya introduced a case management system that will help increase the efficiency and cost-effectiveness of commercial dispute resolution

Source: IFC Doing Business: Subnational Business Reforms in Kenya; Ministry of Agriculture, Livestock and Fisheries; KARI, FAO; AGRA

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How Government is Enabling Private Sector Investment in Agriculture Special Economic ZonesKenya’s Special Economic Zones (SEZ) are aimed at promoting rapid economic growth through increased agro-processing in selected zones, while ensuring there is an enabling business environment for investors

Location of the 3 Special Economic Zones

Special Economic Zone

Investor Incentives in the Zones

GuaranteedInfrastructure

Tax Incentives

Supply Security

Other Services

Land

The SEZs will include the establishment of agricultural parks, industrial parks as well as science and technology parks

Investors enjoy numerous tax incentives including a ten year corporate tax holiday, withholding tax holiday, excise duty and Value Added Tax (VAT) exemption, and repatriation of profits

SEZs will facilitate the secure supply of raw materials for processing

Mombasa will host the largest special economic zone under 2,000 square km of land while Lamu and Kisumu will be 700 square kilometers each

SEZs will allow for a wider range of commercial ventures, wealth creation and job opportunities including the creation of free ports and trade zones

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Source: Kenya Vision 2030; Special Economic Zones Bill, 2012

Mombasa

Lamu

Kisumu

Kenya will build special economic zones in Mombasa, Kisumu and Lamu

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Maize: 525 253 acres

Sugarcane: 311 731 acres

Horticulture: 134 143 acres

How Government is Enabling Private Sector Investment in Agriculture Galana-Kulalu Food Security ProjectThe Galana-Kulalu Scheme is a flagship project worth USD 2.88BN to be implemented over five years on one million acres with an aim to enable Kenya to become a food secure nation

Overview of the Scheme

Note: 1Includes Dairy, Beef, Poultry, Goat and Sheep ProductionSource: Presidential Strategic Communication Unit , January 2014, NIB 2014; Land Use Plan, Consultancy Services for Pre-Investment, Pre-Feasibility and Planning Study of Galana Kulalu Food Security Project, 2014

The Galana-Kulalu project is a government initiative to enhance national food security by optimising of the productivity of the Galana and Kulalu Ranches on one million acres of land irrigated over the next five years– This will occur through targeted investments

in the production of crops, livestock and fisheries, the optimisation of eco-tourism activities and the integration of sustainable utilization of other natural resources

Core Benefits

Integrated farming for crops and animal production

Export of surpluses to regional and international markets

Revenue generation National food security Social and political stability

Government Support in Galana-Kulalu

Water development on the Tana and Sabaki Rivers

Land use planning and development

Development of transport and communication

infrastructure

Establishment of production support and value chain structures

Environmental and social impact assessments

Production Opportunities for the Private Sector

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Livestock1: 404 868 acres

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Various incentive schemes have been implemented to promoted local business activity and stimulate manufacturing for exported products while providing key guarantees to the investment community

Stimulation Local Manufacturing for ExportPromoting Local Business Activity

Remittance duty and VAT (duty drawback) on raw materials used in the manufacturing of goods of export

Exemption for duty and VAT on imported inputs

100% investment allowance of plant, machinery, equipment and buildings

10 year tax holiday after which a flat 25% tax rate is implemented for the next 10 years

Allowances on plant, machinery, buildings and equipment for hotel and manufacturing sectors is 100% in Nairobi, Mombasa, and Kisumu and 150% in non-urban locales

Guarantees to Local and Foreign Investors

Source: Export Promotion Council, 2014; Trade Incentives, Kenya High Commission, 2014

Guarantee Against Expropriation

Repatriation of Capital and Profits

Tax Remission for

Exports

Manufacture Under Bond

Export Processing

Zones

Investment Allowance

How Government is Enabling Private Sector Investment in Agriculture Financial Incentives4

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How Government is Enabling Private Sector Investment in Agriculture Private Sector EngagementThe Government of Kenya is also leveraging a number of critical forums to engage the private sector in the transformation of its agriculture sector

Leverages the Kenya Agribusiness and Agroindustry Alliance as the primary platform to actively engage with agribusiness in Kenya. One of the key initiatives of the KAAA, is the inclusive business platform which is supported by the government and agribusiness to enhance investment and empower smallholder farmers

Joined Grow Africa in 2011 as one of the pioneer member countries in an effort to support the initiative to accelerate investments for sustainable growth in African Agriculture

Government Involvement in Key Agribusiness Forums and Platforms

Hosted the 5th Africa Grain Trade Summit in 2013, which had an aim to explore the continent’s potential for the global trade in grain, attended by over 250 top African leaders from the private sector, NGOs, development partners, financial institutions and government representatives

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Promotes and develops commercial activities of the Kenya National Federation of Agricultural Producers, enabling it to provide. a diverse range of services to farmers and institutions in the agricultural sector

Industrialization Week

Hosted an Industrialization week in March 2014 to introduce various players in the agroprocessing supply chain

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How Government is Enabling Private Sector Investment in Agriculture Focus on Competitive Value ChainsKenya has several key value chains in which it has a competitive advantage and which could serve as essential investment platforms for the country’s continued economic success

Sugarcane Mangoes

Tea

Floriculture

Coffee

Dairy

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Source: Ministry of Agriculture, Livestock and Fisheries

LivestockPassion FruitRice CashewsMarine and Fisheries

Value Chains Integral to Building the Agricultural Sector’s Competitiveness

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Agenda

Why Kenya






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What are the Investment OpportunitiesInvestment Opportunities in Selected Value Chains

Filters for Identification

Market Potential

Country Competitiveness

Social Impactand

Investor Outlook

A rigorous filtering process was conducted based on the market potential, competitiveness, impact and outlook of selected commodities to arrive at five value chains in which opportunities could be identified

Mangoes Sugarcane

Immediate Opportunities

RiceLivestock

Dairy

Immediate Opportunities refers to value chains with

immediate investment cases

Source: Ministry of Agriculture, Livestock and Fisheries

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What are the Investment OpportunitiesSnapshot of Sugar Production and Processing Opportunity

Deficit in Local Sugar Production Potential for New Entrant in Tana River Delta

Kenya’s it not able to meet the growing demand for sugar as its sugar deficit is 218,000 MT and is expected to increase 1.9% per year to nearly 243,000 MT by 2017

InvestmentOpportunity in

Sugar Production and

Processing

Opportunity to invest $339 million into producing and processing sugarcane with a cogeneration power plant; scheme will produce 150,000 MT sugar / year at full capacity and generate 30 MW of power

Initial Investment $339.5M

Production Capacity 150,000 MT of sugar

IRR 21%

NPV $267.0M

2014 2015 2016 2017

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provides an opportunity for a well-managed entrant; within 5 years of operation, a new entrant can gain 12.7% market share

To meet this deficit, an opportunity exists for investors in the Tana River Delta, as it provides favourable agro-climatic conditions for cultivating sugarcane and could be supported by the Galana-Kulalu project

An opportunity exists to produce white milled sugar to be sold to Kenyan local markets through retailers and wholesalers, as well as generating by-products such as molasses and power

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What are the Investment OpportunitiesSnapshot of Mango Production Opportunity

Growing Market for Mangoes Competitive Advantage in Ngowe Mango

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Demand for mangoes is growing at 10%, with increasing demand for processed products such as a pulp and juice which is not met by local production


Mango Production

Initial Investment $30.2M

Production Capacity 190,000 Ngowe mangoes

IRR 20.7%

NPV $19.5M

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Opportunity to invest $30.2M into producing Ngowe mangoes with an estimated selling of over 190,000 Ngowe mangoes by Year 5 of operations

Kenya boasts among the highest mango productivity in the world, and can exploit its favorable agro-climatic conditions for mango cultivation in the Tana River Delta

An opportunity exists for large-scale production of the Ngowe mango variety, through a series of nucleus farms, which will ensure a consistent supply of inputs to processors, enabling them to meet rising demand

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Initial Investment $20M

Production Capacity 40, 000 cattle per year

Processing Capacity 90, 000 heads per year

Net Profit Margin (Year 5)

31%

What are the Investment OpportunitiesSnapshot of Beef Production and Processing Opportunity

Growing Market for Beef Low Commercialisation in Domestic Production


Livestock Production

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The beef industry has been ranked as one of Kenya’s fast rising economic sectors, while a significant amount of illegal imports indicates strong local demand not being fulfilled domestically

Overall, there is a low degree of commercialisation in Kenya’s beef production sector, indicating there is much room for private sector expansion into beef production, specifically in the Laikipia District of west Kenya and Taita Taveta County

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Opportunity to invest $20 million into production and processing of cattle, reaching 40,000 head by Year 5

An opportunity exists to invest in livestock production and processing, sourced from pastoralists and ranches, resulting in the supply of ~40 000 cattle per year to local markets to meet growing beef demand

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What are the Investment OpportunitiesSnapshot of Rice Processing Opportunity

Deficit in Local Rice Production Potential for New Entrant in Central and Western Kenya


Rice Processing

Initial Investment $15MN

Processing Capacity 22,590 MT

Net Profit Margin (Year 5) 29%

Net Income (Year 5) $ 7.3MN

Opportunity to invest $15MN into a rice processing plant, to dry, mill and package white upland rice, cultivated in the Perkerra and Kerio Valley National Irrigation Board schemes, as well as processing the by-products of rice production

An opportunity exists for the production of white milled rice to be sold in local markets through retailers and wholesalers, as well as generating by-products including husk-based charcoal, rice bran and poultry feed

Rice is increasingly becoming an important part of the Kenyan diet as evidenced by growth in consumption, however, local production has failed to capture the growing market, resulting in a deficit in local production and a heavy reliance on imports

Kenya’s local competitive advantage in upland rice, producing yields of up to 7MT/Ha, provides a particularly attractive opportunity for a well-managed entrant to establish a processing mill and capture a share of the growing local market for rice

To meet this deficit, an opportunity exists for investors in Central and Western Kenya, as it provides favourable agro-climatic conditions for the wide-scale cultivation of rice

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What are the Investment OpportunitiesSnapshot of Dairy Processing Opportunity

Growing Market for Processed Milk Increasing need for Milk Processors

Kenya offers an attractive market opportunity for dairy processing, as the demand for processed milk is on the rise and is expected to continue increasing at 15%


Dairy Processing

Initial Investment $32MN

Processing Capacity 1,000,000 litres daily

Net Profit Margin (Year 5) 30%

Net Income (Year 5) $86.6MN

Opportunity to invest USD 32MN into a processing plant in Nakuru; with a daily processing capacity of one millon litres for the production of fresh UHT milk for sale to Kenyan local markets

However, despite the sizeable capacity for local production, Kenya suffers from a milk deficit due to limited dairy processing capacity and low quality feed

An opportunity exists to invest in the establishment of a milk processing plant situated in Nakuru, sourcing milk from local smallholder farmers in Nakuru and adjacent regions for sale in local markets

Opportunities exist to invest in a milk processing plant, partner with an existing processor and/or enter a joint venture with a feed processor

Kenya’s demand for dairy products is significantly higher than in other EAC countries and is expected to continue to grow, driven by an increased preference by domestic and regional markets for processed dairy

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Agenda

Why Kenya






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What are the Next Steps for InvestorsInvestment Process and Key ContactsKenInvest has a dedicated team to assist investors throughout the investment process by providing support at each of the five stages of initiating operations in Kenya

Provides guidance and support on the

most optimal options for company

registration

Issues Investment Certificates that

facilitate immediate start-up of business

Supports site identification and

land acquisition on request, and

facilitates linkages to Commissioner of

Lands

Assists in obtaining tax incentives or exemptions, and

facilitates linkages to government

agencies for the issuance of

additional licenses and approvals

Provides promotional

information on investment

opportunities and the nuances of

operating a business in Kenya

Opportunity Identification

CompanyRegistration

Investment Certificate Approval

Land Identification

and Acquisition

Registration for Tax and

other Licenses and Permits

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Overview of Investment Process and Key Support from KenInvest

Key Contacts

Dr. Moses Ikiara Managing Director – Kenya Investment [email protected]

David Mugambi Sn Investment [email protected]+254 771286 276

mailto:[email protected]

mailto:[email protected]

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Gem KodhekAgriculture and

Agribusiness Sector

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Agricultural Imperatives For Kisumu 1. Maize yields Input use, extension advice, post harvest losses

2. Alternative food crops Beans, Soya, groundnuts, simsim, sesame

3. New cash crops (end sugarcane, release thousands of Ha) French beans, bananas, other tree crops, herbs and spices

4. Animal product value chains Milk, meat, chicken, eggs, small stock

5. New Agribusinesses to support the plan – and feed a city

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Overview of 1st Projects

Agrics Ltd: US$600,000 AECF GrantFarm inputs: hybrid seed, fertilizer, extension, 30 day old chicks

(Nb poultry)Markets : Nafics.0.5 and 1 acre packages, 4-8 months to paySeme

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Overview Of projects

• Joshiche General Traders: US$500,000 grant• Aggregation of soyabean initially 2,000

farmers in Ahero Irrigation scheme• Seed, extension, market• Sell to processors, express and make soya oil,

sell soya cake to feed

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Work In Progress

Mt Kenya Gardens/Meru GreensFrench Beans in sugar belt20 tons per day canning plant in EPZ. 10 ton lorry every 2 days – Ksh 400KKsh 6m solar cooler plus site + loading soonRequirements:

– 50 acres among 200 farmers, 2 extension officers

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Work in Progress (II)

Banana 20 ten 10 ton lorries per week…Ksh 4m (Meru 40m) from 10 markets each week!

Requirements 100 farmers on 1 acre, 200 on ½ acres, Invest Ksh 250K and wait 15 months. Irrigation water, river, well, borehole 1 acre = 500 plants 500,000 Tissue culture bananas at Ksh 150 each 2 motivated and facilitated extension officers

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The way forward

Land and water mapping Schools program Agricultural entrepreneurs networks Agricultural processing business park Farmer/entrepreneur exchange visits Interrogate the agriculture budget

1. Public expenditure review2. 2015/16 Budget proposal

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