July 31, 2018   by

Agriculture sector in Kenya offers many investment opportunities

Agriculture is the most successful industry in Kenya and contributes in the largest way to Kenya’s GDP. The climate diversity in the country makes it possible to grow variety of agricultural products in different parts.

Many Kenyans have made a fortune by investing in this industry, and with the integration of technology in agriculture and improved strains of crops and farm animals the cost of production has been lowered and improved yields. With the right strategies and a risk taking attitude, chamas can harness the potential of this industry, as there still is a lot of opportunity for investment.

Agricultural areas that chamas can invest into include:

Poultry Farming

This is probably the most common and most loved agricultural venture in Kenya. This could be attributed to the promising poultry market in the country .

The major challenge here is the amount of care that goes into rearing poultry. Birds can easily contract diseases if not well taken care of. This makes the business quite expensive and risky.

The advantage is that there is a large and ready market for poultry products especially in the urban areas. The market is also stable and prices will often rise than fall.

Horticulture.

Horticultural products  are a major export commodity for Kenya. Someone joked that Kenyan flowers are what makes romance possible in Europe. And the climate in most areas of the Rift Valley is suitable for their growth, albeit under special conditions and green houses.

The major challenge of this business is the perish-ability of flowers, and they could make great losses if they do not reach the market in time. The initial investment could also be high because they need special conditions.

The pros however outweigh the cons, and when properly grown and marketed, flowers could mean big business for a chama.

Dairy Farming.

This is an industry that has been known to be dominated by semi monopolies in the commercial scale, and most dairy farmers are mainly suppliers of milk. The good thing about it is that the demand is fairly high, and the prices are also good.

A group could consider buying and rearing dairy cows. Alternatively, they could opt to source milk from farmers and process it into dairy products like geese which can then be sold at a profit.

Venturing in the dairy industry will require a good deal of management and marketing, therefore the group must ensure its ready to face such. When properly done, it could translate into good profits for the chama.

Cash crop business

For a long-term investment where no immediate returns are needed, this is the way to go. Cash crops like coffee, tea and fruits do very well in various parts of the country, and are highly marketable locally and in international markets.

A group can buy land for farming or lease for a given period of time.

Agriculture, just like any other sector, is rich in investment opportunity, and only if one knows where to look for it. It’s crucial to always invest in modern methods of agriculture, because technology has made it more efficient and cost effective, hence reducing risks of loss.

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This post was written by Victor Makau

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