Kenya: Agriculture's poor performance slowing GDP growth

Kenya's agriculture sector, often hailed as the backbone of the economy, is currently grappling with poor performance that is hindering the country's economic growth. A recent World Bank report highlighted that the sector's underperformance has led to a 0.3% slowdown in GDP growth. In an exclusive interview with CNBC Africa, Jason Braganza, Executive Director at AfroDad, shed light on the dire state of Kenya's food security. Braganza painted a grim picture, citing ongoing risks such as poor rainfall and food production deficits that have persisted from 2021 into 2023. The repercussions are far-reaching, with reports indicating that up to five million Kenyans, particularly in arid and semi-arid regions, are facing heightened food insecurity, famine risks, and malnutrition among children and young adults. These challenges are exacerbated by the global climate crisis, which continues to impact Kenya's agricultural landscape. The decline in agricultural productivity is not solely attributed to environmental factors but also to systemic issues. Braganza pointed out a lack of cohesive linkages between the agricultural sector and the broader economy, emphasizing diminishing government investment in agriculture. Over the years, budget allocations for the sector have dwindled, leading to a disconnect between agriculture and national development goals. Moreover, Kenya's export-oriented agricultural structure has prioritized foreign markets over domestic food production, contributing to the current food insecurity crisis. Braganza stressed the need for a paradigm shift towards sustainable, domestically-focused agriculture to address the productivity gap. To unlock the full potential of agribusiness in Kenya, Braganza underscored the importance of aligning incentives with the country's food security needs. While the government has introduced tax exemptions to support the sector, more targeted policies are required to promote value addition and domestic food production. Balancing export-oriented strategies with a strong focus on meeting local demand is crucial for achieving food sovereignty and long-term sustainability. In conclusion, the challenges facing Kenya's agriculture sector demand urgent attention and concerted efforts to revitalize the industry. By prioritizing research and development, fostering sustainable practices, and reevaluating the agricultural value chain, Kenya can mitigate the impact of poor performance on both its GDP growth and food security. The road ahead may be challenging, but with strategic interventions and a shift towards holistic agricultural strategies, Kenya can pave the way for a more resilient and productive agricultural sector that caters to the needs of its population.