Kenya Targets Fresh Horticulture Growth Through Investment, Digital Farming and Global Markets

Kenya is seeking to strengthen the competitiveness of its horticulture industry by lowering the cost of doing business, protecting existing investments, expanding global markets and accelerating the adoption of agricultural technology.

Agriculture and Livestock Development Cabinet Secretary Sen. Mutahi Kagwe said the next phase of growth must focus not only on attracting new investors but also on ensuring companies already operating in Kenya remain profitable enough to expand, reinvest and create more jobs.

The horticulture industry contributes about KSh145 billion annually to Kenya’s economy, with flowers accounting for approximately 57 per cent of the sector’s contribution, according to figures cited by the CS during a horticulture industry showcase.

Kagwe called for faster processing of legitimate tax refunds owed to horticultural businesses, arguing that money returned to investors can be channelled back into production, expansion and employment.

He pointed to the growing local packaging of Kenyan flowers destined for supermarkets in the United Kingdom as an example of how reinvestment can create additional economic activity beyond primary production.

The CS also called for a review of levies, tariffs and other charges affecting horticultural producers, as the government seeks to reduce production and operating costs and maintain an environment capable of attracting and retaining investment.

“You cannot get growth out of taxation. You get growth out of production,” Kagwe said.

The push comes as Kenya continues to position horticulture as a major export and employment sector. Government data shows the industry exported 402,194.7 tonnes of produce worth KSh136.6 billion in 2024, with flowers, fruits and vegetables forming the core of the trade.

Technology is expected to become increasingly important in maintaining that competitiveness. Kagwe highlighted research into climate-resilient crop varieties and the use of digital tools to help producers respond to climate and production pressures.

Through the Kenya Agricultural Digital Information Centre, the government is also pursuing wider use of digital agriculture, including drone technology, soil testing and soil analysis. The Ministry has been developing a policy and legislative framework for KADIC as part of efforts to strengthen agricultural data and digital information systems.

Kagwe further announced plans for a private-sector liaison function within the Kenya Agricultural and Livestock Research Organization. The proposed mechanism is intended to strengthen links between researchers and businesses so that public research responds more directly to challenges facing producers while innovations developed by private companies gain greater visibility within research institutions.

Market access remains another major part of the strategy. The European Union continues to be an important destination for Kenyan horticultural products, making compliance with trade, food safety and phytosanitary requirements essential for exporters.

Kenya is also facing external pressures that could affect the sector’s competitiveness. Geopolitical disruptions in the Middle East can affect both export markets for products such as flowers, tea and coffee and the availability and cost of important agricultural inputs, including fertiliser and petroleum products.

The government is consequently seeking stronger public-private cooperation as the sector responds to these pressures while pursuing new investment and markets.

The approach is consistent with Kenya’s broader agricultural investment strategy, which places private capital, innovation, climate resilience and stronger value chains at the centre of efforts to transform the agri-food sector. The National Agri-Food Systems Investment Plan 2026–2030 identifies investment, innovation and partnerships as key components of the country’s agricultural transformation agenda.

Kagwe urged both Kenyan and international investors to participate more actively in horticulture, saying the government’s role should be to remain responsive to industry needs and create conditions in which production, investment and enterprise can expand.

For Kenya’s horticulture industry, the next stage of growth will therefore depend not only on how much produce reaches international markets, but also on the cost of producing it, the amount of value added locally, the technologies available to farmers and the ability of businesses to reinvest and compete.