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Nairobi Business Monthly
Home»Briefing»Aggregation and industrial parks will spur economic growth in Kenya
Briefing

Aggregation and industrial parks will spur economic growth in Kenya

Antony MutungaBy Antony Mutunga13th September 2024Updated:14th September 2024No Comments2 Mins Read
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Kenya has partnered with the Food and Agriculture Organization (FAO) and the United Nations Industrial Development Organization (UNIDO) to unveil a pilot project known as the Circular Economy in the County Aggregation and Industrial Parks (CAIPs) as part of a broader plan to provide financial and technical support to farmers while addressing various gaps in their value chains.

The one-year pilot, with funding from the Kenyan and Norwegian governments valued at Sh193.13 million ($1.5 million), will first be implemented in Laikipia and Nyamira counties to help banana and livestock farmers tackle the issue of post-harvest losses currently accounting for 40 per cent of the national production. The initiative also aims at reducing food loss and waste by turning them into beneficial products, while ensuring that the environment is safeguarded and revitalized.

According to Collins Marangu, Agriculture Secretary, Ministry of Agriculture and Livestock, through the project, the government hopes to ensure that the entire food production process is utilized to nourish both people and the environment.

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“Imagine a world where agricultural by-products are recycled to provide energy, where food waste is composted to fertilize soils, and where every product is used to its fullest potential. This is the essence of a Circular Economy in the food system. It creates closed loop systems where agricultural products are reused, re-purposed, and recycled, hence reducing waste and maximizing value,” Mr Marangu said.

With challenges like climate change, urban growth, and dwindling resources having put immense strain on how we make, process, and use food, the current linear model of production, where food is extracted, used, and then discarded, is no longer sustainable.

Food and Agriculture Organization’s Kenya Interim representative Nyabenyi Tipo said the move is in line with the United Nation goals that aim to transform the global agrifood system to be more resilient, nutritious and inclusive. Tipo said: “The agrifood systems should be solutions rather than problems and the transformation should begin at the grassroots level within local communities, ensuring that sustainable practices are effectively implemented. And that is exactly what this pilot project brings.”

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Antony Mutunga

Antony Mutunga holds a Bachelors degree in Commerce, Finance from Jomo Kenyatta University of Agriculture and Technology. He previously worked for Altic Investment & Consultancy before he joined NBM team in 2015. His interest in writing ranges from business, economics and technology. He is also our lead researcher in matters business.

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