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Commercializing Kenyan Agriculture and Finding Opportunities for Youth Engagement along Agricultural Value Chain Development

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Presentation by Stephen Vundi Mungula, ICRAF, at the SIANI Members Meeting in Nairobi, November 14th 2018

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Commercializing Kenyan Agriculture and Finding Opportunities for Youth Engagement along Agricultural Value Chain Development

  1. 1. Commercializing Kenyan Agriculture and Finding Opportunities for Youth Engagement along Agricultural Value Chain Development SIANI NAIROBI, ICRAF 14.11.2018 Stephen Vundi Mungula
  2. 2. Introduction • What is the current status of the agricultural sector in Kenya? • Why is the sector the way it is? • How can stakeholders harness the sector’s potential and remove obstacles to commercialization? About SIANI Kenya Chapter Expert Group ‘’Commercializing Kenyan Agriculture’’ Objectives of the group
  3. 3. WHAT IS THE SITUATION? Food & Nutrition Security Food self-sufficiency ratio is at 75% Food poor population high at about 60%. At any time, 3-5 million people are at risk and 4 M at crisis during drought. Low food diversity 19% (2.3 out of 12) Stunting 26% under 5 years Poverty Alleviation Rural poverty has stubbornly refused to decline (49.1%), ASDSP figures on income show that on-farm incomes are low at 37 KES/capital per day and majority SH farming HHs less than 200/day Employment Quality of employment for rural population Foreign Exchange Earnings Both imports and exports have grown steadily over the years. But the coverage ratio continues to be negative.
  4. 4. WHY IS THE SITUATION SO? Policy and institutional failure( not supporting transformation) Agricultural land fragmentation Lack of structured Inter-sector and intra-sector cooperation and coordination Inadequate resource allocation On average 3-4% of national budget, 3-12% by county governments Only a mere 4-5% of total credit from formal banks goes to agric.(KBA). Inappropriate investments (political priorities over economic efficiencies) Population pressure Knowledge (R&D) Only sector where majority of actors are not qualified Knowledge transfer Evidence based planning
  5. 5. How do we harness sectors potential Have we been moving forward? Need for change of business as usual strategies?
  6. 6. Commercialization and Value Chain Analysis  Define commercialization = Productivity and Income  Productivity = Value Chain Analysis Definition ; made of primary activities and support activities. Concept ; separates useful activities (competitive advantage) from the wasteful activities. Income = Poverty line, KES 200 per day per household member Income = (a*b*C.O.P*e*365)/d C.O.P = Cost of Production Productivity (Yield/Unit) (a) Price (b) Net Income per production (c) Household Size (d) Area under production (e) Net Income per capita  Climate Smart Agricultural (CSA) practices and technologies
  7. 7. Social Inclusion and Youth Social inclusion refers to removal of institutional barriers and incentives to increase the access of individuals and groups to development opportunities. Key agricultural issues of importance to youth = Market access, finance, mechanization and ICT  Youth-led projects and ideas need to be acknowledged and be given space WHO?, HOW?
  8. 8. Conclusion and Way Forward  Support evidence based decision making and policy development  Need to encourage the sector actors and particularly development programmes to factor in a mentorship support facility to youth  Need for deeper understanding of commercialization and sharing of this to stakeholders

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