In a move towards sustainable agriculture and food security, Kenya, through the Kenya Development Corporation (KDC) has entered into a partnership with the United Green Group (UG) by signing a memorandum of understanding (MoU) to develop an advanced climate-smart agri-food system.
The partnership will see UG invest Sh42.14 billion ($275 million) towards the initiative which aims to deliver Agri-fin-tech services, promote high productivity climate-smart farming, and establish state-of-the-art agro-processing facilities. Thus, creating new markets for at least 100,000 rural households over the next five years.
According to Rebecca Miano, Cabinet Secretary for the Ministry of Investment, Trade and Industry, Kenya must provide leadership and prudent investment to develop inclusive, scalable, market-based, environmentally sustainable and high productivity agri-food systems.
“This project has incredible alignment to the government’s strategy and with the national Government’s Bottom-up Economic Transformation Agenda flagships,” she said.
The project is set to improve food security for Kenya and the region – through innovative technologies and sustainable farming practices, the project aims to reduce Kenya’s dependence on imported food commodities, potentially saving the country around Sh30.65 billion ($200 million) annually. This reduction in import dependency will not only contribute to food security but also help address Kenya’s trade deficit.
The agri-food investment will also concentrate on several key areas to ensure its success. These areas include climate-smart and sustainable farming practices, improved nutrition, job creation with a focus on women and youth empowerment, and the establishment of inclusive and demand-driven consumer markets. By addressing these critical aspects, the project aims to create a holistic and sustainable agri-food system in Kenya.
In accordance to Norah Ratemo, the Director General of KDC, the partnership is a significant step forward in adapting to climate change and addressing food security in Kenya through technological innovations.
Technology will play a crucial role in the development of the climate-smart agri-food system. Through leveraging digital tools, precision agriculture techniques, and data-driven insights, farmers can optimize resource utilization, improve crop yields, and mitigate the impact of climate change. The integration of financial technology (FinTech) services will also support farmers in accessing credit, insurance, and other financial tools, enabling them to invest in their businesses and improve their livelihoods.
It will also create new markets for rural households, particularly those in remote areas. By establishing state-of-the-art agro-processing facilities, the project will enable farmers to add value to their produce and access higher-value markets. Kenya aims to leverage the expertise and resources of UG to implement cutting-edge technologies, innovative farming techniques, and modern processing facilities. The investment will enable the country to enhance agricultural productivity, promote sustainable practices, and create economic opportunities for rural communities.
On his part, Neil Carter, UG Investment Officer, the partnership is addressing the impacts of climate change and delivering regional food security. “We are proud to be working in partnership with such committed partners in KDC and the Government of Kenya to deliver real-world solutions to address the impacts of climate change and deliver regional food security,” Carter said.
