This Week in Agriculture

01 EDITOR’S NOTE

Hi!

This is only the second edition of our biweekly newsletter, and already we’ve begun to receive some great feedback from you on what you’d like us to feature in the days, weeks and months ahead.

If you’re new to us, every Friday we break down the headlines that have real significance to you, whether directly in your business or simply as someone with an interest in agriculture in Kenya. We’re happy you found us.

But a huge dose of reality to start with.

We’re already over halfway through August, and conversations about the upcoming El Niño weather patterns have begun to dominate the headlines.

Are we prepared enough?

Many would say no. Prolonged dry spells have already had a major impact on Kenya’s maize harvest, and the expected rains could add another layer to the challenge.

We explore this and more, in the latest edition of the Agrarian Newsletter.

02 NEWS ROUND-UP

Kenya is facing an anticipated maize shortfall of about 25 million bags, with imports expected to help fill the gap. But the bigger question is how the country can reduce its reliance on rainfall as climate shocks continue to affect production.

Expanded irrigation is one response, alongside drought-tolerant seed, water harvesting, crop insurance and better storage. The challenge is making these solutions accessible enough to farmers to have a meaningful impact on production.

This is where the government’s new National Agri-food Systems Investment Plan (NASIP) becomes relevant. The five-year plan puts irrigation, climate-smart agriculture and food security among its priorities, signalling a broader push to make Kenya’s food system more resilient.

NASIP commits Sh1.081 trillion to agriculture over the next five years, with 45% of the funding expected to come from the private sector. Its priorities extend beyond production to include food security, value chains, agricultural finance and climate-smart agriculture.

The real test, however, will be implementation. Investment in roads, storage, processing and market access could help address some of the infrastructure gaps that make farming difficult and expensive, while better access to finance and technology could help farmers adopt new approaches.

For agribusinesses, this creates opportunities beyond the farm itself. Logistics, storage, processing, irrigation, finance and digital services could all become increasingly important as Kenya invests in building a more resilient agricultural system.

As interest rates come down, Kenyan banks are increasing their lending to agriculture. That matters because access to affordable credit can determine whether a farmer can invest in the next season, buy equipment or expand a business.

Cheaper financing could make it easier to invest in machinery, irrigation, livestock, inputs and working capital. But agriculture remains difficult for traditional lenders because farmers face weather, production and price risks, while many smallholders lack the collateral banks typically require.

This creates an opportunity for financial businesses that can find better ways to understand and manage agricultural risk. The next phase of agricultural finance may depend not just on cheaper loans, but on finding better ways to lend to farmers whose businesses do not fit traditional banking models.

The value of Kenya’s macadamia production rose 73% to Sh8.6 billion in 2025, with production reaching close to 54,000 tonnes. That is a considerable turnaround for an industry that has had a difficult few years, with farmers facing falling prices, weak demand and uncertainty around export policies.

But higher production value does not necessarily mean farmers are making more money. Earlier this year, some farmers were reportedly receiving as little as Sh40 per kilogramme, compared with around Sh150 when raw-nut export restrictions had previously been relaxed.

Processing, value addition and stronger market access could help farmers capture more of the value, while creating opportunities for businesses that can build better links between Kenyan growers and international buyers.

As farmers deal with rising input costs, unpredictable weather and pressure on soil and water, some are looking for ways to get more from the resources they already have. This is bringing renewed attention to circular and agroecological approaches to farming.

From turning farm waste into compost or animal feed to integrating crops and livestock and improving soil health, these approaches can help farmers reduce waste and make better use of what is already available. They are not new ideas, but they are becoming increasingly relevant as the cost and risk of farming rise.

For agribusinesses, this creates opportunities beyond selling conventional farm inputs. Products and services that help farmers manage waste, improve soil health, use water more efficiently or turn existing farm resources into something valuable could become an increasingly important part of the agricultural economy.

03 OPPORTUNITIES IN AGRICULTURE

I’m also excited to share with you a few opportunities worth your attention this coming week!