Agriculture in Kenya is a vital sector that contributes 33 per cent of the gross domestic product (GDP) and another 27 per cent of GDP indirectly through linkages with other sectors, besides employing approximately 40 per cent of the 50 million population.

Being a complex that covers crop and livestock production, aquaculture and forestry, it is a key driver of food security and economic growth, the government says will be the focus of this budget for economic rebound that creation employment.

Overall, says National Treasury and Economic Planning Cabinet Secretary John Mbadi, growth performance has diminished to 4.4 per cent in 2024 compared to 7.1 per cent in 2023. According to the 2025 economic survey, the situation was triggered by decrease in horticulture exports, maize and pyrethrum production respectively.

The economic survey 2025 launched on Wednesday by Mr Mbadi shows that the general growth decline was occasioned by multiple factors, despite enhanced government support to the sector in addition to increased crop yields and livestock production in the review period.

Mbadi said during the review period, the net output of the agricultural sector – agriculture gross value added (GVA) – expanded by 4.4 per cent to Ksh1.706 trillion ($13.2 billion) in the period under review compared to Ksh1.6 trillion ($1.3 billion) in 2023.

Major subsectors including tea, milk, sugarcane and coffee production increased driven by favourable weather.

The tea subsector, even though topped in terms of earnings, recorded a slight decrease by Ksh83.7 million to Ksh178 billion during the period under review.

Marketed agricultural production earnings for the period 2020 to 2024 increased by 7.2 percent to Sh690 billion in 2024.

The cereals sub-category recorded an increase of 5.7 per cent to Ksh51.9 billion, while permanent crops such as coffee, tea and sisal contributed Ksh214.2 billion, reflecting an increase of 5 per cent in 2024. Temporary industrial crops surged by an impressive 58.3 per cent, to Ksh52.1 billion during the review period.

However, earnings from fresh horticultural products recorded a decline from Ksh156.7 billion in 2023 to Ksh136.6 billion during the year under review.

Overall, crop earnings grew by 2.7 per cent to Sh454.8 billion during the review period. Livestock sector earnings posted a remarkable growth of 17.2 per cent to Ksh235 billion in 2024.

“The total export value decreased from Sh156.7 billion in 2023 to Ksh136.6 billion in 2024, representing a 12.8 per cent decline. This was partly attributed to the cargo export restrictions at JKIA.

Consequently, there was increased demand for air cargo space, particularly for fruit exporters, leading to higher air freight costs,” Mbadi confirmed.

Maize production in the review period decreased to 44.7 million bags from 47.6 million bags in 2023 accounting to 6.1 per cent decrease partly due to erratic short rains in 2024.

While dry pyrethrum flower production declined by 2.7 percent from 1,680 tonnes in 2023 to 1,634 tonnes in 2024.

The survey however noted that rainfall patterns varied across seasons with March-May long rains being above average while October-December short rains being erratic and poorly distributed.

The CS, however, noted that the economy is projected to remain resilient and stable in 2025, especially in agricultural productivity supported by favourable weather and distribution of subsidized fertilizer and seeds distribution which will greatly support projected economic growth in 2025.

On tea, abundant rainfall in tea-growing areas resulted in a 4.2 percent increase in green leaf tea production to 2.6 million tonnes in 2024.

Similarly, total milk production increased by one percent to 5.3 billion litres in 2024, while the quantity of marketed milk increased by 12 percent to 908.4 million litres in 2024. Sugarcane production increased by 68.7 percent to 9.4 million tonnes in 2024, and coffee production increased by 1.6 percent to 49.5 thousand tonnes during the crop year under review.

“Earnings from exports of cut flowers declined marginally from Ksh73.5 billion ($567 million) in 2023 to Ksh72.1 billion ($556.3 million) in 2024 as a result of European Union enforcement of regulations on False Codling Moth (FCM) that led to higher rejections and interception rates.

Fresh vegetable earnings also recorded a decline from Ksh50.9 billion ($39.3 million) in 2023 to Ksh23.4 billion ($180.6 million) in 2024, mainly due to Maximum Residue Levels (MRLs) interceptions.

Further, EU notifications regarding Kenyan beans and peas in pods due to concerns about pesticide residue levels exceeding MRLs resulted in lower export volumes,” stated the survey.

The economic survey is published annually, presenting socioeconomic data. The report provides information on all sectors of the economy as defined by the Kenya Standard Industrial Classification of all Economic Activities, as well as information on other emerging areas.

• A Tell Media / KNA report / By Wangari Ndirangu

Economic survey report. Agriculture growth has declined

Agricultural products, the released economic survey.