Kenya could realize a significant reduction in its food import bill estimate at Ksh 500 billion annually by deploying green technologies and sustainable financing tailored for youth led agri-enterprises.
According to a new Food Systems Analysis commissioned by FSD Kenya through the Green Finance for Youth Employment (GFYE) project conducted in 14 counties and which analyzed five priority value chains, majority of agri-enterprises run by the youth in rural areas are affected by lack of access to finance, inadequate income as well as poor bookkeeping which hinder their scalability to commercially viable ventures.
Findings from the report which analyzed 1,210 youth agri-enterprises show that 53pc lack collateral as the main barrier to credit, while 43pc cited irregular income with 16pc citing weak financial records.
“Across Africa, there is growing recognition that young people are central to the transformation of our food systems and rural economies. Under IFAD14, we are deepening our focus on creating opportunities for young people through climate-resilient investments and support to the ‘first mile’ of food systems, where inclusive growth, innovation and sustainable livelihoods can take root, “said Mariatu Kamara, IFAD Kenya Country Director.
According to the report which analyzed five value including dairy, horticulture, poultry, fisheries and aquaculture, and apiculture, while commercially viable enterprises exist, there is a mismatch in suitable financing mechanisms.
The analysis shows that Kenya faces an annual deficit of 5 billion eggs, 6.5-7.5 billion litres of milk, 340,000 metric tonnes of fish and 5,500 metric tonnes of honey all which are largely met through imports.
“Kenya’s food deficits are not only a food-security challenge; they are a youth-employment opportunity, and green finance is the bridge between the two,” said Rashmi Pillai, Chief Executive Officer, FSD Kenya. “This analysis shows where the commercial opportunities sit. The work now is to redesign finance and delivery systems around the seasonal, informal and increasingly technology-enabled realities of young agri-enterprises, and to build the skills that let young people take these opportunities up.”
The study also highlighted the need for the agribusinesses to explore use of green technologies in improving enterprise viability and reducing costs.
The study was conducted in 14 counties including Meru, Tharaka Nithi, Embu, Kirinyaga, Nyeri, Machakos, Nakuru, Kisii, Siaya, Nandi, Kakamega, Busia, Bungoma and Trans Nzoia.
