A brief overview of the agricultural sector in Kenya
Agriculture has, for many years, formed the backbone of Kenya's economy: the
agriculture sector contributes about 30 per cent of the Gross Domestic Product
(GDP) and accounts for 80 per cent of national employment, mainly in the rural
areas. In addition, the sector contributes more than 60 per cent of the total
export earnings and about 45 per cent of government revenue, while providing
for most of the country's food requirements. The sector is estimated to have
a further indirect contribution of nearly 27 per cent of GDP through linkages
with manufacturing, distribution, and other service related sectors.
Kenya's agricultural sector directly influences overall economic performance
through its contribution to GDP. Periods of high economic growth rates have
been synonymous with increased agricultural growth.
The tea sector is a dominant sector and the coffee sector has started to pick
up following a decline in the recent past. The horticultural and flora sectors
have seen unprecedented growth over the past years as more companies venture
into production and export of flowers and fresh produce.
The sugar industry has faced significant challenges and it is the government’s
intention to improve the sector. This industry is expected to show good growth
over the next few years, should the government implement their stated policies.
Other sectors where the country has significant untapped resources include
cotton, forestry, fishing, pyrethrum, and macadamia nuts.
PricewaterhouseCoopers provides services to the main agricultural companies
producing tea, coffee, flowers, horticulture and sugar in Kenya. With the introduction
of International Accounting Standard 41 – Agriculture, PricewaterhouseCoopers
played an active role in bringing together key players in the sector to address
and overcome the challenges of implementing the standard.
