The government has unveiled a new plan to elevate the country's agricultural exports, focusing on cocoa, mung beans, and jute (Mrenda). The move, which was formalised through a Gazette Notice issued on November 15, is part of President William Ruto’s strategy to diversify Kenya's crop exports and secure stronger footholds in lucrative international markets, particularly in Europe and Asia.
In the Gazette Notice, Cabinet Secretary for Agriculture and Livestock Development Andrew Karanja declared cocoa, mung beans (locally known as Ndengu), jute (Mrenda), and cocoyam as 'Scheduled Crops'. This designation allows the government to regulate and promote these crops through specialised policies aimed at boosting production and stabilising markets.
Why it matters: The government has been in a footrace to improve the country’s trade balance, which has been largely dependent on imports. President Ruto has also been pushing for the diversification of the country’s exports as a way of increasing revenues.
In 2023, Kenya’s total exports brought in Ksh906 billion which is about 21 per cent of this year’s budget.
Dig deeper: Scheduled crops are considered pivotal to the nation’s agricultural economy, and their regulation under the Crops Act will ensure that their production, processing, and trade are managed with precision.
The scheduled crops are governed by the Agriculture and Food Authority (AFA), which will oversee aspects such as production practices, crop marketing, and post-harvest handling. This system also ensures that farmers receive vital support through credit facilities, access to farm inputs, and technical assistance.
As a result, farmers are expected to increase productivity while also gaining better access to markets, both local and international.
The new initiative will elevate these crops alongside established powerhouses like tea, coffee, and sugarcane, sectors that have long been the backbone of Kenya's agricultural exports. However, the focus now shifts towards expanding markets and scaling production in emerging export commodities that have shown significant growth potential.
Bigger picture: Kenya’s cocoa industry, for instance, has been on the rise. Although the country currently ranks 26th globally in cocoa production, statistics from 2022 show a steady increase in output.
In 2022, Kenya exported approximately $18.9 million (about Ksh2.45 billion) worth of cocoa, with key markets including Indonesia, Malaysia, India, Spain, and Madagascar. Notably, the exports to Indonesia surged by 80% between 2021 and 2022, demonstrating the growing demand for Kenyan cocoa.
Still, the sector remains small compared to the likes of Côte d'Ivoire and Ghana, the world’s largest producers. The new government measures aim to change that.
For mung beans, Kenya has seen a significant increase in demand. Exports of dried mung beans reached 8.7 million kilograms in 2023, a 70 per cent increase from the previous year. This growth highlights the expanding market for mung beans, particularly in Vietnam, the UAE, and Thailand. The revenue generated from these exports was approximately $6.85 million (Ksh2.9 billion).
As Kenya continues to capitalise on its growing presence in the global legume market, the government’s planned interventions are expected to accelerate this upward trajectory.
