Kenya must move beyond the era of exporting raw agricultural produce and invest decisively in value addition and agro-processing to unlock the full potential of its agricultural economy, President William Ruto has declared.
Speaking during the official opening of the 2025 Nairobi International Trade Fair at the Jamhuri Park Grounds, President Ruto said that transforming agriculture into a value-driven manufacturing powerhouse is the next major frontier in the country’s economic evolution.
“For decades, we have exported our tea, our coffee, our livestock, our minerals, our cotton, our hides and skins, and even our fish in raw form only to import them back at a premium as finished products,” he said. “This model has denied our farmers, workers, and entrepreneurs the full value of their hard work and ingenuity. That era must end.”
A New Vision for Agriculture
The President emphasized that value addition is not merely a policy objective but a national imperative. Through strategic investment in special economic zones, County Aggregation and Industrial Parks (CAIPs), and common user facilities, the government intends to ensure that every agricultural product leaving Kenya carries additional value, creating more jobs and retaining greater wealth within the country.
“Value addition is not just an economic strategy; it is the key to prosperity for every stakeholder across the value chains,” he asserted.
He outlined that Kenya’s approach now aims to transform farming from a subsistence activity into a vibrant industrial enterprise that guarantees sustainable incomes for farmers, boosts employment, and drives higher national growth.
Strategic Investments in Processing and Manufacturing
To operationalize this shift, President Ruto revealed that the government is partnering with the private sector to establish common user facilities in Kericho, Nairobi, and Mombasa. These facilities are expected to help increase Kenya’s value-added tea exports from the current 5 percent to at least 50 percent in the medium term.
“This will not only create jobs and generate wealth but will also ensure that Kenyan tea commands a premium position in the global market,” the President noted.
At the county level, the government is rolling out CAIPs in all 47 counties. These industrial parks will serve as centralized hubs where farmers can bring their produce for processing and packaging while accessing modern infrastructure such as cold storage, warehousing, and transport facilities.
“These parks will eliminate post-harvest losses, reduce logistics costs, cut out exploitative middlemen, and ensure that more money goes directly to the farmer,” President Ruto explained.
Expanding Market Access
While emphasizing the importance of processing and manufacturing, the President noted that increasing productivity and value addition would only yield sustainable results if producers have access to larger and more lucrative markets.
“Value addition alone, however, is not enough. Our farmers and producers must also access larger markets,” he said.
To this end, Kenya has signed and is actively implementing trade agreements with several global economic blocs, including the African Continental Free Trade Area (AfCFTA which provides access to a 1.4 billion-person market with a GDP of $1.4 trillion as well as the European Union, China, and the United Arab Emirates.
“These partnerships are expanding our trade footprint and ensuring that our farmers and entrepreneurs can sell their products competitively beyond our borders,” the President added.
Agriculture and Trade: The Twin Engines of Growth
President Ruto described agriculture and trade as the “twin turbo-engines” of Kenya’s prosperity, emphasizing that the two sectors are now undergoing deep reforms aimed at boosting productivity, improving market linkages, and empowering farmers.
“Over the past three years, we have registered 7.1 million farmers to deliver targeted support, reduced the cost of critical inputs, and invested in value addition,” he said. “These bold reforms are cutting post-harvest losses, raising productivity, and connecting farmers directly to competitive markets.”
He linked these interventions to his administration’s Bottom-Up Economic Transformation Agenda (BETA), describing it as a vision for inclusive, sustainable, and transformative growth.
“This is the essence of BETA ensuring that every hardworking Kenyan, from the farmer to the small trader, benefits meaningfully from economic growth,” he stated.
Fertilizer Subsidies and Record Maize Harvests
The President highlighted that the government’s fertilizer subsidy and distribution program is already transforming national food production.
In 2024, Kenya achieved a record maize harvest of 67 million bags, with projections showing an even higher yield of 70 million bags this year. As a result, maize imports have dropped by nearly 70 percent from 9.9 million bags in 2022 to just 3.3 million in 2024.
“These interventions are paying off,” the President said. “They are evidence that when government policy supports productivity, farmers respond.”
To further build on these gains, the government plans to distribute 12.5 million bags of fertilizer across all 1,450 wards during the 2026 planting seasons. This will be in addition to the 4.5 million bags already procured for the short rains season.
Empowering Farmers through Affordable Credit
President Ruto also noted that improving access to affordable financing is critical for boosting agricultural productivity and competitiveness.
He lauded the Kenya Development Corporation (KDC) for securing a KSh3.7 billion concessionary loan facility for Kenya Tea Development Agency (KTDA) farmers. The funds, he said, will be used to modernize factory equipment, lower production costs, and diversify into Orthodox tea production to cushion farmers against the global oversupply of Black Crush Tear Curl (CTC) tea.
“This credit facility marks a major step in repositioning our tea sector to compete effectively in international markets,” he remarked.
Revitalizing Agricultural Sectors and Crushing Cartels
The President further pointed to wide-ranging reforms in the coffee, dairy, tea, and leather industries, asserting that the government has dismantled powerful cartels that had long crippled these sectors.
“The transformation of our country is unfolding across every sector—from agriculture and affordable housing to healthcare and manufacturing. We are creating a fairer and more efficient system where every Kenyan benefits,” he said.
Ruto underscored that the government’s goal is to ensure that the proceeds of farmers’ labor are not captured by intermediaries or rent-seekers but instead flow directly to producers and workers.
“Our farmers’ sweat must translate into real income and jobs. That is the Kenya we are building,” he affirmed.
The Future of Agro-Industrialization
The President’s message at the Nairobi International Trade Fair resonated strongly with the event’s theme, “Promoting Innovation and Technology in Agriculture and Trade.”
By pushing for agro-industrialization, Ruto is positioning Kenya to join a growing list of African nations shifting from raw commodity exports to value-added production. This shift is expected to drive industrial growth, diversify exports, and strengthen Kenya’s competitiveness in global markets.
Under the CAIP framework, each county is expected to identify its comparative advantage be it tea in Kericho, coffee in Nyeri, macadamia in Meru, or fish in Kisumu and establish specialized value chains tailored to local resources.
This county-driven industrial strategy, officials say, will spur regional development, enhance food security, and ensure that prosperity is widely shared.
Stakeholders Rally Behind the Vision
Agriculture Cabinet Secretary Mutahi Kagwe, Nairobi Governor Johnson Sakaja, and Agricultural Society of Kenya (ASK) National Chairperson Edith Onzere, who also addressed the gathering, echoed the President’s call for intensified investment in agro-processing.
CS Kagwe said the government’s priority is to transition Kenya into an export-oriented agro-industrial economy. “We are moving from exporting raw materials to exporting finished products. That is how we will create wealth for farmers and jobs for our youth,” he said.
Governor Sakaja praised the national government’s commitment to reviving agriculture and trade, noting that Nairobi’s status as an innovation hub will complement these efforts by hosting processing facilities and trade centers.
ASK Chairperson Edith Onzere lauded the fair’s exhibitors and stakeholders for showcasing Kenya’s innovation potential. “The trade fair is not just an exhibition—it is a statement of our collective commitment to reimagine agriculture as the foundation of industrial growth,” she said.
A Call to Action
President Ruto urged all stakeholders, farmers, cooperatives, investorsw and county governments to align with the national vision of value addition and industrial transformation. “Kenya’s future depends on our ability to create wealth from what we grow, mine, and manufacture,” he said. “We cannot continue exporting jobs and importing prosperity. It is time to build it right here at home.”