Identification of Opportunities for Norwegian Businesses in Enhancement of Value Chains in the Kenyan Agriculture Sector_FINAL (2).pdf

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REPORT: DESK STUDY
Identification of Opportunities for Norwegian
Businesses in Enhancement of Value Chains
in the Kenyan Agriculture Sector
CLIENTS
Innovation Norway East Africa and
The Royal Norwegian Embassy in Nairobi
CONSULTANCY TEAM
Team leader Cand. polit. Jose Ramos
MSc. Mariela Covault Tyrihjell
PhD. Kenneth Kambona
Ba. Richard Ochieng Bonyo
3rd
of May 2017

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REVISION HISTORY
Version Date Description Author
1.0 15.10.2016
Draft report, Desk Study: Identification of
Opportunities for Norwegian Businesses in
Enhancement of Value Chains in the Kenyan
Agriculture Sector.
Consultancy team
2.0 15.11.2016
DESK STUDY: Identification of Opportunities
for Norwegian Businesses in Enhancement of
Value Chains in the Kenyan Agriculture
Sector.
Consultancy team
3.0 12.12.2016
Sector. Editing.
Consultancy team
4.0 29.03.2017
Sector. Improved.
Consultancy team
5.0 29.03.2017 Proof reading. Joyce Moore
6.0 10.04.2017 Final adjustments and quality assurance. Reinaart Pretorius
7.0 03.05.2017 Final adjustments in accordance with clients’
request
Consultancy Team
The synopsis and the final edition of the reports were done with the contributions of
Fredrick Tunutu and Neatness Bwenge.

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CONTENT
LIST OF ACRONYMS AND ABBREVIATIONS ...........................................................VI
1. INTRODUCTION ................................................................................................ 1
1.1. Background ..................................................................................................1
1.1.1. The Agriculture Sector in Kenya .................................................................1
1.1.2. The Agriculture Sector in Norway ...............................................................2
1.2. Scope and Objectives of the Study...................................................................2
1.3. Methodology .................................................................................................3
1.3.1. General Approach ....................................................................................3
1.3.2. Desk Research.........................................................................................3
1.3.3. Interviews...............................................................................................3
2. FINDINGS......................................................................................................... 3
2.1. General Findings ...........................................................................................3
2.2. Findings from Desk Research ..........................................................................4
2.2.1. Business Opportunities in the Preselected Subsectors....................................4
3. BUSINESS OPPORTUNITIES IN LIVESTOCK SUB-SECTOR.................................. 5
3.1. The available business opportunity in poultry sub-sector.....................................5
3.1.1. Business Opportunity................................................................................5
3.1.2. Description of the Business Opportunity ......................................................5
3.1.3. Potential Kenyan Partners .........................................................................7
3.1.4. Promoters of the Opportunity ....................................................................7
3.1.5. Potential Norwegian Partners.....................................................................8
3.2. The Available Business Opportunity in the Meat Sub-sector ...............................10
3.2.1. Business Opportunity..............................................................................10
3.2.2. Description of the Business Opportunity ....................................................10
3.2.3. Potential Kenyan Partners .......................................................................14
3.2.4. Promoters of the Opportunity ..................................................................15
3.2.5. Potential Norwegian Partners...................................................................15
3.3. The Available Business Opportunity in Dairy Sub-sector ....................................17
3.3.5. Potential Norwegian partners...................................................................18
4. BUSINESS OPPORTUNITIES IN HORTICULTURE SUB-SECTOR......................... 20
4.1. The Available Business Opportunity in the Floricultural Sub-sector......................24
4.1.1. Business opportunity ..............................................................................24

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4.1.2. Description of the business opportunity.....................................................24
4.1.4. Promoters of the opportunity ...................................................................26
4.2. The Available Business Opportunity in Vegetables and Fruits Sub-sector .............29
5. OTHER BUSINESS OPPORTUNITIES IN THE AGRICULTURE SECTOR ................ 34
5.1. Other Business Opportunity: Containers and equipment....................................34
5.1.1. Business opportunity:.............................................................................34
5.2. Other Business Opportunity: Green Houses.....................................................36
5.3. Other Business Opportunity: Organic Fertilizer ................................................38
5.4. Business Opportunity: Water Management, Fertilizer and Renewable Energy .......40
5.5. Other Business Opportunity: Consumer’s Coffee Demand and Preferences ..........43
5.5.2. Description of the Opportunity .................................................................43

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5.5.3. Promoters of the Business Opportunity .....................................................45
6. FINDINGS FROM INTERVIEWS........................................................................ 46
6.1. Interviews of Representatives of Norwegian Companies ....................................46
6.2. Interviews with Kenyan Agriculture Value Chain Actors .....................................47
6.2.1. Stakeholders in Dairy Sub-sector .............................................................47
6.2.2. Comments from Stakeholders in the Horticulture Subsector .........................48
6.2.3. Comments from Stakeholders in the Beef Subsector ...................................49
6.2.4. Comments from Stakeholders in the Poultry Subsector................................50
6.3. Interview of relevant researchers...................................................................51
7. DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS................................. 51
7.1. Synopsis of Reports .....................................................................................51
7.2. Recommendations: Action Plan for the Clients .................................................52
7.2.1. Mobilization Meetings to Provide Information about Opportunities in Kenya....52
7.2.2. Field Visits and Exchange of Information with Actors in the Region ...............53
7.2.3. Engagement of Investment Brokers..........................................................53
7.2.4. Governmental Incentives ........................................................................53
7.2.5. Challenging Norwegian Companies in the Agriculture Sector ........................54
7.2.6. Database for Business Opportunities Based in the “Finn partnership” platform 55
LIST OF TABLES
Table No. 1: Potential partners for chicken and egg production......................................10
Table No. 2: Potential partners for meat sub-sector .....................................................16
Table No. 3: Potential partners for dairy sector ...........................................................20
Table No. 4: Potential partners for the floricultural sub-sector .......................................28
Table No. 5: Potential partners for vegetal and fruit sub-sector .....................................34
Table No. 6: Potential partners for containers and equipment businesses........................36
Table No. 7: Potential partners for green houses .........................................................38
Table No. 8: Potential partners for green manure or organic fertilizer .............................40
Table No. 9: Potential partners for sewage, biogas and fertilizers...................................43
Table No. 10: Potential partners for consumers’ coffee preferences................................46

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LIST Of ANNEXES
Annex No. 1: Synopsis Kenya Flower Industry Global Competitiveness Report.................56
Annex No. 2: Synopsis A study on fresh vegetables market in Kenya desk review............58
Annex No. 3: Synopsis The structure and dynamics of cut flower...................................60
Annex No. 4: Synopsis Kenya Horticultural Competitiveness Project.............................62
Annex No. 5: Synopsis Kenyan meat sector opportunities for Dutch Agribus..................64
Annex No. 6: Synopsis Kenya Dairy Value Chain Finance..............................................66
Annex No. 7: Synopsis Multi-Stakeholder Evaluation of Agriculture and Livestock ............68
Annex No. 8: Synopsis Dairy Development in Kenya ....................................................70
Annex No. 9: Synopsis Impact of contract farming on poultry Farmers ...........................72
Annex No. 10: Synopsis Agricultural Research in Africa ................................................74
Annex No. 11: Synopsis Agricultural Sector Development Strategy 2010–2020 ...............77
Annex No. 12: Synopsis East African Strategic Agro processing Value Chain..................80
Annex No. 13: Synopsis Analysis of Incentives & Disincentives for Coffee in Kenya ..........83
Annex No. 14: Synopsis Enabling the Business Agriculture 2016....................................86
Annex No. 15: Synopsis Agricultural Innovation Systems .............................................90
Annex No. 16: Synopsis NABA Business Guide – EAC 2015 ...........................................92
Annex No. 17: Synopsis EAC Food Security Action Plan (2011 – 2015) ...........................94
Annex No. 18: Synopsis Doing Business 2016 .............................................................97
Annex No. 19: Synopsis African Investment Report 2016 ........................................... 100
Annex No. 20: List of assessed documents and bibliography ....................................... 102

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LIST OF ACRONYMS AND ABBREVIATIONS
A.I. ............... Artificial Insemination
ARLA............. Arla Foods Amba
ASDS ............ Agricultural Sector Development Strategy
BAMA ............ Bama Gruppen AS
BNS .............. Bns Container AS
BRC .............. Brønnøysund Register Centre
CAADP........... The Comprehensive Africa Agriculture Development Program
CAIS ............. Central Artificial Insemination Station
CLIENTS ........ Innovation Norway Nairobi and The Royal Norwegian Embassy In Nairobi
COMESA ........ The Common Market For Eastern and Southern Africa
DFCS............. Dairy Farmers Cooperative Society
EAC............... East African Community
EPC............... Export Promotion Council
EPZA ............. Export Processing Zones Authority
EU ................ European Union
FAO .............. Food and Agriculture Organization
FPEAK .......... Fresh Produce Exporters Association of Kenya
GC-DB........... Genetic Characterization Databases
GCDB ............ Geographic Coordinate Database
GENO ........... Geno SA
GDP .............. Gross Domestic Products
HSE .............. Health, Safety and Environment
IN................. Innovation Norway, Nairobi
IVAR ............. Inter municipal company for water, waste water and general waste
KARI ............. Kenya Agricultural Research Institute
KCC .............. Kenya Co-Operative Creameries
KEPSA ........... The Kenya Private Sector Alliance
KES............... Kenya Shilling
KIPPRA .......... Kenya Institute for Public Policy Research and Analysis
KLDC............. Kenya Leather Development Council
KLMC ............ Kenya Livestock Marketing Commission
KNCCI .......... The Kenya National Chamber of Commerce and Industry
KMC .............. Kenya Meat Commission
MCDFCU ........ Meru Central Dairy Farmers Co-Operative Union Ltd
MCFCU ......... Meru Central Farmers’ Cooperative Union
MW ............... Mega Watts

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NABA ............ Norwegian-African Business Association
NEMA ........... National Environment Management Authority
NOFIMA ......... Nofima AS
NORFUND ...... Norwegian Investment Fund for Developing Countries
NORGESVEL ... The Royal Norwegian Society for Development
NORTURA SA . Norwegian Agricultural Cooperative
PPP ............... Public Private Partnership
R&D .............. Research and Development
RNEN ............ The Royal Norwegian Embassy in Nairobi
SME .............. Small And Medium Enterprises
SPS............... Sanitary and Phytosanitary Standards
TSI ............... Trade Support Institution
TINE ............. TINE SA
UNEP ............ The United Nations Environment Programme
USAID .......... United States Agency for International Development
USD .............. American Dollars

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1. INTRODUCTION
1.1. Background
The Royal Norwegian Society for Development (Norges Vel) and the Associate Consultants
were assigned to a consultancy by Innovation Norway East Africa (IN) and the Royal
Norwegian Embassy in Nairobi (RNEN), hereafter called clients. The assignment involved
conducting a desk study on Identification of Opportunities for Norwegian Businesses in
Enhancement of Value Chains in the Kenyan Agriculture Sector. In performing the
assignment, the consultancy team had to communicate with Norwegian and Kenyan
companies in order to determine elements of interest and willingness of companies from
both ends to share information on establishing opportunities for Norwegian Businesses in
Enhancement of Value Chains in the Kenyan Agriculture Sector.
This report therefore, presents the findings obtained from the study in accordance with the
Terms of reference provided by the Clients.
1.1.1. The Agriculture Sector in Kenya
The agriculture sector remains a key sector to economic development in Kenya, contributing
27% to GDP1
and is the main source of livelihoods for the majority of the population. The
sector accounts for 65% of export earnings and employs 75% of the rural population either
informally or formally. The Agricultural Sector Development Strategy (ASDS) 2010-2020,
sets the target for agricultural growth at 7% per annum, and highlights the sector’s vision
as ‘Innovative, Commercially Oriented and Modern Agriculture’. The Comprehensive Africa
Agriculture Development Program (CAADP) for Kenya, which is implemented through the
ASDS, identifies increasing agricultural productivity and promoting commercialization and
competitiveness of key value chains as the priority to achieve this target of 7% growth. The
strategic thrust of ASDS is to increase productivity, commercialization and competitiveness
of agricultural commodities and enterprises. It also puts emphasis on sustainable
development and management of the key factors of production. These thrusts create a need
for increased investment in the agriculture sector.
The agricultural sector comprises six major sub-sectors under which business opportunities
can be explored. These include:
a) Industrial crops,
b) Food crops,
1
ASDS, 2016: Strategic Plan for Agricultural and Rural Statistics. Spars-Kenya. 2015-2022. March
2016.

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c) Horticulture,
d) Livestock,
e) Fisheries and
f) Forestry.
Some of the main factors that contribute to the successful production of these sub-sectors
are land, water and farmer institutions (cooperatives, associations, and so forth). Two of
these major subsectors, which are livestock and horticulture, are included in this
consultancy report. However, the study also worked on other business opportunities in the
agriculture sector which are not among the six identified major agricultural sub-sectors.
1.1.2. The Agriculture Sector in Norway
Norway is strongly influenced by its geographical location and weather conditions for
agricultural production. In addition, the overall goals of the Norwegian agriculture and food
policies have directly influenced the agriculture sector. The Norwegian policies for this
sector have four priorities, which are food security, agriculture across the country, wealth
creation and sustainable agriculture. Unlike other sectors that are market based and usually
export oriented, the Norwegian agriculture sector complies with the Norwegian agriculture
policies which are based on import protection and agricultural agreements between farmers
representatives and the government (“jordbruksavtalen”). These agreements include
subsidies and other types of support provided by the government to Norwegian farmers.
According to the Norwegian government, “The Norwegian agriculture sector is currently
immersed in a formidable change in a demanding market with rising imports, demands for
increased efficiency to keep costs down and changing consumer preferences”. 2
1.2. Scope and Objectives of the Study
The main objective of the study was to identify the opportunities for Norwegian businesses
in enhancement of value chains in the Kenyan agriculture sector. The specific objectives
were to:
a) Establish business opportunities in Kenyan agricultural sector that match with
Norwegian businesses.
b) Conduct a literature search of documented reports on opportunities for creating more
domestic value in the agriculture sector in Kenya.
c) Identify Norwegian and Kenyan companies that are interested in working together in
order to promote the value chains in the selected Kenyan agriculture sub-sectors.
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Response by the Ministry of Agriculture and Food to the Norwegian Parliament, 11.12.2015.

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d) Assess the identified business opportunities to match potential expertise, technology
and/or capital from Norwegian businesses with the aim of developing Kenyan
agriculture value chains.
1.3. Methodology
1.3.1. General Approach
The study entailed collection of the required data from both secondary and primary sources.
The desk research, which entailed literature review, was the main secondary source of data,
while interviews constituted the major primary data source.
1.3.2. Desk Research
The desk research was conducted through reviewing of relevant reports, books and
documents in the form of hard and soft copies obtained physically and from websites
respectively. Findings generated from the documents reviewed were compiled, descriptively
analysed and synthesised for the preparation of this report. Based on the desk research
findings, the consultant improved the study design by identifying and focusing on the most
relevant Kenyan agriculture sub-sectors and which value chains can be promoted through
working with the Norwegian businesses.
1.3.3. Interviews
The team contacted various Norwegian and Kenyan companies while conducting this
consultancy. Interviews were conducted with relevant Norwegian and Kenyan agriculture
business key stakeholders including five relevant researchers in Norway. Data collected
from these interviews were also analysed descriptively and the findings were found to be
critical in complementing the data gathered from the secondary sources and improving the
final findings’ validity and reliability.
2. FINDINGS
2.1. General Findings
It was observed that some Norwegian companies are reluctant to do business in Kenya or
East Africa, while others gave positive indications of showing interest to do business in
Africa although not giving a clear and precise indication of their willingness to it. The
companies that showed positive signals towards operating in Africa are considered as
potential companies that can be involved in business opportunities in this part of the African

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continent. While some of the interviewed persons considered that Norwegian companies in
the agriculture sector have not yet identified interesting businesses to do in Africa, others
are optimistic that starting business operations in Africa is a good prospect, although
flagging potential higher risk within corruption, government, legislation and infrastructure
as potential minor obstacles. Also, some of the negative reactions were based on the low-
or lack of compatibility of the agriculture production modes in Norway and East Africa and
the Norwegian agriculture capabilities to operate without subsidies from the Norwegian
state while investing in East Africa.
2.2. Findings from Desk Research
The process of gathering reports written on opportunities for creating more domestic value
in the agriculture sector in Kenya was more demanding than expected. Few online
publications available have information about concrete opportunities that match with
Norwegian businesses. However, the consultancy team in February – March 2017 managed
to review the initial report after identifying concrete business opportunities and companies
interested in doing businesses in Kenya.
The consultancy team identified reports written on opportunities for increased value creation
in the Kenyan or East African agricultural sector. However, some of the older reports were
found to be important in the provision of information relevant to the study. Therefore, the
consultancy team learned that many sources of information, older than 5 years, provided
useful information on Norwegian companies that are considering to open businesses in
Kenya.
The business opportunities presented online were assessed to find Norwegian and Kenyan
companies that match key elements in their agricultural activities or profiles. These were
also considered in order to elaborate on the list of efforts recommended to the clients.
2.2.1. Business Opportunities in the Preselected Subsectors
The identified business opportunities were assessed to match potential expertise,
technology and/or capital from Norwegian businesses with the aim of developing Kenyan
agriculture value chains. In this context, a Norwegian company is recognized when it legally
registered in the Norwegian system, called Brønnøysund Register Centre (BRC).
The most relevant business opportunities in the selected Kenyan agriculture sub-sectors
were identified by the consultancy team and are included in this report. However, these
opportunities need further analysis in relation to the situation of the Norwegian agriculture
sector as described in this document. The preselected agricultural sub-sectors in Kenya that

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have shown a potential in creating opportunities for Norwegian businesses to invest for the
purpose of enhancing value chains include, but are not limited to, livestock and horticulture.
The business opportunities described are linked to specific parts of a value chain and
present a potential Norwegian and Kenyan partnership. The promoters (or organizations/
groups or individuals) related to the business opportunities are also mentioned. This helps
giving an overview of relevant actors in the public and private sector showing interest in the
specific opportunity. The promoters are important for potential Norwegian investors so as to
understand better about the environment they will eventually operate in.
The subsectors will be presented in separate chapters – this will make it easy for reference
work.
3. BUSINESS OPPORTUNITIES IN LIVESTOCK SUB-SECTOR
3.1. The available business opportunity in poultry sub-sector
3.1.1. Business Opportunity
There is a business opportunity for construction of modern poultry slaughterhouses,
production of quality golden eggs and chicks in Homa Bay and Mombasa Counties.
3.1.2. Description of the Business Opportunity
The proposed modern poultry slaughter house construction in Homa Bay and Mombasa
Counties is a business opportunity that will require the following:
a) Poultry reception and inoculation/vaccination area
b) Slaughter hall
c) Dressing rooms
d) Chilling and freezing facilities
e) Processing rooms
f) Dry storage rooms
g) Dispatch areas
h) By-product processing rooms
i) Laundry
j) Ice production rooms
k) Offices
l) Changing rooms and toilets
m) Canteen/dining facilities

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n) First aid rooms
o) Crates and vehicle wash areas
p) Effluent treatment and disposal areas
q) Workshop and garage
r) Boiler and refrigeration rooms.
200 hundred birds will be slaughtered per hour for a maximum operation time of 14 hours
daily. It will create 100,000 jobs directly and over 200,000 jobs indirectly to the community
because it will provide market for local poultry breeds as well as incubated poultry breeds.
The poultry farmers’ population in Kenya in 2015, according to Kenya Institute for Public
Policy Research and Analysis, (KIPPRA) was approximately 37.3 million divided into
indigenous poultry (31.4 million), Layers (3.1. Million), Broilers (2.1 Million), and others
including Turkey, Ducks, Guinea Fowl etc. (0.7 million). The population of poultry in Kenya
is such that Coast Region leads with 33.6% followed by Rift Valley with 26.9%. Eastern
Region has 11.2%, Central Region (8.9%), Western Region (8.1%), Nairobi (3.5%) and
North Eastern Region (0.4%).
Established hatcheries in Kenya are categorized into sectors such that Sector 1 deals mainly
with industrial integration aspects and is currently under the monopoly of Kenchick based in
Nairobi. Sector 2 is dealing mainly with hatcheries for day old chicks production and is
privately owned by medium and small-scale companies including Muguku Farm in Kikuyu
(Kiambu County), Sigma Farm in Nairobi, Kenbrid in Naivasha (Nakuru County), Western
Kenya Farm in Webuye (Bungoma County), Bixa in Mombasa, Lake Chick in Kisumu, Kim
Farm in Nakuru, Nyonjoro Nightingale Turkey Farm in Naivasha (Nakuru County), Maasai
Ostrich Farm in Kajiado and Ruaraka Duck Farm in Naivasha (Nakuru County).
Recently, the County Government of Homa Bay distributed a total of 243 hatcheries to
individuals and groups of farmers to boost poultry farming in Homa Bay County.
Despite the existence of significant poultry population in Kenya, egg production for hatching
is still low making Kenya a big importer of eggs for hatching from United Kingdom, Holland,
United States of America, and South Africa. The quality of eggs produced is still low making
it difficult for Kenyan eggs to penetrate markets regionally and internationally.
Increasing poultry population and egg production in Kenya is driven by a boom in the
tourism sector signified by the emergence of a good number of world-class tourist hotels
and expansion of urban centres.

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3.1.3. Potential Kenyan Partners
The main local partners in this venture include:
• Kenya Bixa Limited in Mombasa: This is a leading producer of day old chicks and
chicken capons namely Golden Chick and Golden Chicken respectively. The company
diversified into poultry in 2004 to cushion itself from the risk of relying on one
product at a time when the Bixa market was not lucrative. It has since grown into a
fully integrated sector comprising breeding farm, hatcheries and broiler processing.
Through technical collaboration with VH group of India, Kenya Bixa Limited has been
able to establish the most advanced poultry husbandry and processing in the region.
The company maintains this collaboration in technological areas for improvement of
productivity at both breeding farm and hatchery. 3
• Muguku Poultry Farm: Muguku Poultry farm is primarily a hatchery specializing in the
production of day old commercial layer and broiler chicks. The commercial line eggs
come from their farm produced by their own parent stock. The parent stock originates
from what is believed to be the best breeding lines of chicken in the world. 4
• Isinya Feeds Limited: Isinya Feeds Limited was established in 1984. With a very
humble beginning of a production capacity of 2000 day old chicks, it has grown to
become one of the country’s largest fully integrated poultry company. The main
products include dressed chicken, cut ups, day old chicks (broilers and layers), and
table eggs, hatching eggs, poultry equipment and animal feed. 5
• Eco Chicks Poultry Limited: Dealers and suppliers of eggs’ incubators and poultry
equipment in Kenya.
• Kora Poultry Farm: it is one of the leading indigenous poultry farms in Kenya located
in Nairobi Kenya. The firm deals in large-scale eggs production and supply as well as
poultry meat production and supplies. 6
3.1.4. Promoters of the Opportunity
Promoters of the opportunity include:
• Farm Africa: Farm Africa, which is an international organization working to build a
prosperous rural Africa. It promotes poultry farming in various parts of Kenya including
Kitui in Eastern, Central, Western and Nairobi regions. Farm Africa focuses on
3
www.kenyabixa.com
4
www.mugukufarms.com
5
www.isinyafeeds.co.ke
6
www.thepoultrysite.com/directory/7/asia/38/poultrymeat-suppliers/

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transforming agriculture. They help farmers to increase their harvests, protect the
environment and sell their produce in thriving markets. 7
• Respective County Governments in the Republic of Kenya. 8
• Kenya Agricultural & Livestock Research Organization formally Kenya Agricultural
Research Institute (KARI):
o Conducts research and extension services on improved breeds of indigenous
poultry species such as KARI Kuku Kienyeji, Kuroiler and Kenbro. 9
. Kuku Kienyeji
Project is a concrete example
3.1.5. Potential Norwegian Partners
In Norway, the most important player in this subsector is Nortura SA, based on its expertise
and experience, although they are not directly interested in expanding business activities in
Kenya. However, it should be worth a try to invite Nortura to inform them about this
opportunity.
Another Norwegian company known as FFF Productions AS is doing great efforts to establish
business in East Africa and it has already been testing production of eggs in Tanzania. They
have expressed their interest to do business in Kenya. This Norwegian company is already
established in Tanzania as Golden Eggs of Zanzibar. However, this company does not have
the human capacity nor the investment capital to become a major actor in Kenya and/ or
East Africa. With support from Norwegian government and/ or Innovation Norway this group
can develop sufficient market share in Kenya / East Africa.
Their business idea targets the tourist industry in Zanzibar by supplying table eggs with
yellow yolk that are preferred by the target customers. Golden Egg of Zanzibar has studied
the market in Tanzania and has successfully tested the production for one-year’s period in
Jambiani, and Kibeli. The tested production has been successful in producing eggs with
yellow yolks that are preferred by consumers.
Golden Eggs of Zanzibar aims to produce 18 million eggs annually after 5 years of
operations in Tanzania and also is planning for the next years to establish production units
in Mombasa, where the level of egg consumption is comparable to that of Zanzibar due to
the establishment of a good number of hotels, a situation that mimics Zanzibar. The
expansion to the Kenya market is intended to be done after production systems are fully
operational and the tested methods have proved to be sustainable in Tanzania. Hence the
7
www.farmafrica.org
8
www.cog.go.ke
9
www.kalro.org

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production processes can be used as blue prints to be copied in starting business in
Mombasa and the Islands in the Western Part of the Indian ocean where tourists and hotels
are potential customers.
Golden Eggs of Zanzibar is also intending to manifest its Social Corporate Responsibility by
focusing on organizing women groups to establish chicken yards run by women with the
assistance of the company so that they can produce both chicken and eggs.
In addition, Golden Eggs of Zanzibar is also planning to produce top grade chickens that
today are mostly imported to Zanzibar from South Africa, Brazil, and Philippines. The
entrepreneur behind Golden Eggs is receiving expertise support from Sunnmørsmat AS, a
chicken farmer in Norway with long experience in the industry.
For the proposed business opportunities to thrive, investment in production of Golden Eggs
(top quality eggs) for both hatching and direct consumption for Kenya are vital. The idea
behind Golden Eggs is borrowed from the Golden Eggs of Zanzibar concept whose idea is to
provide the tourist industry on the island with eggs that contain yellow yolks. Today the
eggs’ yolk on the islands including Pemba are almost white having a range of grade 1 – 4
and therefore the company is working on improving their grade scale from 1 to 12.
The consultancy team has also identified a Norwegian investor interested in both poultry
and chicken feed production. However, the investor has not taken the final decision and is
planning to visit East Africa in July 2017 to explore the available opportunities and
understanding the environment. The Norwegian investor is considering supporting Golden
Eggs to expand their business. Table No. 1 shows the business opportunity and potential
partners for chicken and egg production.

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Table No. 1: Potential partners for chicken and egg production
Business opportunity:
technology/service
Potential Kenyan
companies/partners
Potential Norwegian
companies/partners
Modern Poultry
Slaughter House and
Top Quality Golden
Eggs and Chicks
Production in Homa Bay
and Mombasa Counties
and egg production
Kenya Bixa Limited:
www.kenyabixa.com
Muguku Poultry Farm:
www.mugukufarms.com
Isinya Feeds Limited:
isinyafeeds.co.ke/
EcoChicks Poultry Limited:
www.ecochickspoultry.com
Kora Poultry Farm:
www.kora-poultry-farm.business1.com
FFF Productions is
registered in Tanzania
as Golden Eggs of
Zanzibar:
CEO: John Bruseth
John.bruseth@mrfylke.
no
3.2. The Available Business Opportunity in the Meat Sub-sector
This sub-sector offers opportunities at several levels or areas and therefore we have divided
it in five sections:
a) A combined abattoir and processing facility in various parts of Kenya.
b) Commercial ranching especially in the Coast, Eastern and Rift Valley Regions.
c) Commercial feedlot for improved livestock fattening program for local and
international markets.
d) Improved animal breeding services including farm technology transfer.
e) Livestock feeds processing and distribution.
a) Business opportunity in a combined abattoir and processing facility
There is an opportunity for the development of a turnkey project for the construction of a
modern Livestock slaughter house for Nairobi to replace the four slaughter houses in
Dagoretti, as well as similar facilities in Mombasa, Nakuru, Kisumu and Eldoret. This move
will improve the quality of carcass delivered to the market and help the veterinary services
to improve their inspection and food safety assurance. This type of investment may also
adopt a Public-Private Partnership Business Model between the respective County
governments and the meat traders and or direct private investors.

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The Ministry of Agriculture, Livestock and Fisheries’ Strategic Plan (2013-2017) has as its
Strategic Objective the need to improve market access and trade for agricultural products,
especially beef. Two strategies to achieve this strategic objective include, promotion of local
and export markets; and establishment of export zones. Therefore, the need for export
abattoirs and slaughter houses is proposed in the Strategic Plan with a target of 8 Export
Slaughter houses being established by the end of the Plan’s Implementation Period.
However, none of these Export Slaughter Houses have been developed, creating a viable
business opportunity in the Export Market Sector for Beef and Beef Products in Kenya.
b) Business opportunity in commercial ranching
Currently commercial ranching in Kenya is responsible for not more than 2–3% of total beef
production that targets the high-value market. The commercial ranches in Kenya are an
important actor to entry to and increased access to the international beef market where
quality is the hallmark. The cattle produced on these ranches are of high quality and safety
and quality guarantees can be given. The commercial ranches are better prepared to meet
the international standard required by many countries and in particular the European
market. Investment in commercial ranching is supported by the existence of large areas for
extensive cattle production with experienced livestock keepers at low-cost prices.
Many agro-ecological zones and corresponding best breeds and farming systems, giving a
good spread of climate and less marketing risks are evident in most parts of Kenya where
ranching is encouraged such as Laikipia Plateau, Malindi, Tana Delta, and Taita Taveta and
other parts of the Rift Valley. There also exist well-defined markets for beef at national level
and regionally both in the East African Community and The Common Market for Eastern and
Southern Africa (COMESA) regions. Through open borders, supply and demand is easily
balanced.
Some 159 group ranches were existing in Kenya as by December 2015. 129 were in the Rift
Valley (Kajiado, Narok, Samburu, Laikipia, Baringo and West Pokot), 6 in South Nyanza, 7
in Eastern Province (Embu and Kitui) and 17 in Coast Province (Taita, Kwale and Kilifi). The
minimum acreage required for small size ranch is approximately 500 acres with a capacity
for up to 1000 heads of cattle. However, for ideal commercial beef cattle rearing, a
minimum of 25,000 acres with minimum of 5,000 cattle is ideal. Such a ranch is capable of
holding sufficient grassland area, watering pans, feedlots and cattle groups.

12
c) Business opportunity in commercial feedlot
The investment in commercial feedlot for improved livestock fattening program is aimed to
establish an approximately 15,000 acres’ animal feedlot/fattening ranch, so that an
extensive system of holding and fattening of beef cattle on a well-established pasture is
implanted. The main types of pasture to be implanted within the feedlot/fattening farm
include; Gatton Panic for its high adaptability to soils and climatic conditions of various
regions, Boma Rhodes, Nappier Grass, Desmodium species and other fodder crops. The
feedlot will also have a hay and silage processing and storage system, veterinary services
and livestock quality control system. The livestock from the feedlot will target both local and
international markets, either as live cattle or processed beef.
Feedlots are of four main designs which are; Open Feedlot with Wind Break, Open Feedlot
with Shed, Deep Bedded Confinement and Slatted Floor Confinement. Depending on the
design of a feedlot, a farmer will require adequate size of land for developing feedlot
infrastructure and establishing pasture implantation.
d) Business opportunity in improved animal breeding services
This business opportunity in improved animal breeding services also includes farm
technology transfer and Artificial Insemination Services. The business will enable the
enhancement of livestock productivity through better reproduction and breeding
management. The objective of this investment is to improve livestock production and
reproduction of breeds adapted to the local environments with improved qualities, with
emphasis on the characterization of livestock genetic resources. The identification of genes,
controlling productive and economic traits and the establishment or strengthening of
artificial insemination programs are also attractive prospects. The investment entails
technology and expertise transfer on areas such as:
i. Introduction of Nuclear Technologies for Livestock Breeding and Reproductive
Management;
ii. Development of Genetic Characterization Databases (GC-db) of Cattle Breeds in
Kenya;
iii. Scaling up Artificial Insemination Services targeting underserved areas in Kenya to
improve livestock breeds and pedigrees and;
iv. Embryo Transfer Services and Technology Centers. Indicus East Africa currently
works on a high-tech training facility that trains and equips inseminators who then
increase access to quality and affordable genetics for smallholder cattle farmers,
including embryo transfer. This will help in addressing the breeding challenges in the
Artificial insemination (A.I). It will also enhance the value chain particularly in

13
distribution of quality A.I. in the currently underserved North and South Rift regions
of Kenya. This innovation emphasizes proper record-keeping and genomic tracing.
e) Business opportunity in Livestock Feeds Processing and Distribution
According to Food and Agriculture Organization (FAO) statistics estimates, the cattle
population in the country is estimated to be over 19 million heads as at 2012, thus requiring
a substantial amount of animal feeds. The latter is fairly expensive at present and some is
of poor quality as well as being inconsistent in availability. There is also inadequate and
uneven distribution of mineral supplementation. An investment in livestock feeds production
and processing is thus a timely investment that will cushion both commercial cattle farmers
and individual farmers from perennial losses often incurred whenever drought and famine
strike. Suitable areas for commercial farming of livestock pasture include Coast, Eastern
and Rift Valley regions.
The overall objective of the investment project is to increase livestock production and
productivity by improving the supply and accessibility of stock feeds to livestock farmers.
The immediate objective is to increase processed feed production. This is expected to
increase the supply of stock feeds and their utilization by livestock farmers across Kenya,
leading to improved livestock production and quality of livestock products. The investment
will also enhance livestock food security and nutrition thereby reduced losses to farmers
through deaths of animals due to hunger. Immediate outcome of this investment will be an
increased income for livestock farmers and, in general, the rural areas by boosting trade
and commerce in livestock of high quality. To the Kenyan Government, the investment will
result into enhanced foreign exchange earnings through increase in livestock exports.
The livestock feeds are classified into two categories which are Concentrates and Roughages.
Concentrates are Feeds that generally are high in energy, low in fiber, and usually are
highly digestible. High-concentrate diets are also referred to as “high-energy” or “high-grain”
diets. Concentrates are preferred for their role in producing rapid gains. Typical examples
commonly available in Kenya include cereal grains (corn, milo or sorghum grain, wheat,
oats, and barley), oil meals (soybean meal, cottonseed meal, and linseed meal), molasses,
and dried milk products. On the other hand, Roughages are feeds that generally are higher
in fiber (cellulose), less digestible, and lower in energy. Animals consuming high-roughage
diets (usually ruminants) do not gain as fast as those consuming high concentrate diets.
Major examples of roughages include legume hays, grass hays, straws (from production of
seed and grain), silage, stover and fresh grass. A good animal feed should have a balance
between Concentrates and Roughages.

14
The following is a summary of business opportunities in the Livestock industry:
• Processing units: Beef processing units in major livestock production regions such as
the Rift Valley region.
• Game meat: Game meat is a new area, which has a very wide investment scope in
Kenya because of its uniqueness and relationship with the tourism sector.
• Businesses like ostrich farming and crocodile farming have already proved to be
profitable ventures.
• Artificial Insemination (AI) Services: Artificial Insemination plays an important role
in development of the livestock and dairy sub-sector. Since the Government is in
the process of privatizing these services, this offers an important opportunity
for investment by the private sector.
• Dipping Services: Dipping services are important to tick-borne diseases, which can
hinder the development of high quality beef and dairy products. In the past the
Government has been providing the services, which are now being privatized. This
area offers an important opportunity for private investment.
• Animal feeds: The cattle population in the country is estimated to be over 15 million
heads requiring a substantial amount of animal feeds. The latter is fairly expensive at
present and some of poor quality and inadequate. Uneven distribution of
mineral supplementation is also observed.
The drivers and potential partners in Kenya are many, several of them are already
operating in the international market, however the potential is in collaboration with Small
and Medium Enterprises (SME). They rely on synergy and collaboration with foreign market
players in their bid to access the markets. Besides, it seems as if SME’s enjoy preference
treatment by the Government of Kenya while seeking Export Permits and Licensing. Some
of the Small and Medium Enterprises in the Beef Sector identified are listed as follows:
a) Manbros Agencies: The Company is a Distributor, Exporter, Importer, Manufacturer
and Trader in Beef and Beef Products in Kenya.
b) Profresh Exports Ltd: Profresh Exports Limited is a Kenyan Company that deals in
array of Processing and Exporting goods including meat.
c) Abdurahman: Abdurahman is a Kenyan Company specializing in the Distribution,
Exporting, Importing, Manufacturing and Trading of Frozen Meat and other Beef
Products including Beef By-Products, Beef Minced Meat, Beef Steaks, Beef T-bone
Steaks, Beef Whole, Lamb By-Products, and Lamb Meat.

15
d) Aflah Importers and Exporters: Aflah is a young, organized and fastest growing meat
exporting company in Kenya with a well drilled team of employees eager to meet
client demands in beef and lamb meat products from East Africa Region.
Businessmen in this sub-sector will find valuable support from the following public entities
and private sector agencies:
a) Export Processing Zones Authority (EPZA) 10
b) Kenya Meat Commission (KMC) 11
c) Kenya Livestock Marketing Commission (KLMC) 12
d) Kenya Leather Development Council (KLDC) 13
There are considerable opportunities in the livestock sub-sector for Norwegian businesses to
consider based on the expertise and know-how that they possess, particularly in the
processing and marketing segments. The Kenyan livestock sector needs to develop, in
terms of competitiveness, customer demand, food safety, environment, animal welfare and
working efficiently with scarce resources to avoid competition with basic human nutrition.
This means that the products and solutions offered to Kenyan agribusiness should integrate
and address all issues to develop results-oriented socially responsible and clean production
systems. In essence, the equipment, systems and solutions offered should be aimed not
only at increasing production levels, but also at resolving and improving the total production
system, meeting not only the requirements for producers and processors/traders, but also
the demands of consumers and society at large.
The Norwegian companies possess expertise and experience in several areas that are
relevant for the Kenyan livestock subsector which include:
a) Meat processing units and abattoirs.
b) Combined efforts to promote alliances with partner in the market and the society.
c) Artificial Insemination to produce in accordance with the market’s demand.
d) Production of cost effective animal feeds.
e) Prevention and control of animal diseases.
10
www.epzakenya.com
11
www.kenyameat.co.ke
12
www.livestockcouncil.or.ke
13
www.leathercouncil.go.ke

16
Nortura SA (Nortura) is a potential Norwegian partner that operates in the meat value chain
and possesses expertise and technology in livestock production, abattoirs, meat processing
and marketing. Nortura is a cooperative that also operates in the poultry industry. Nortura
is currently doing business in Kenya, by operating an abattoir in Nairobi with the Kenyan
Company called Farmers’ Choice.
We consider that Nortura and Geno SA (Geno) are potential partners despite the signals
they have been giving in the last years concerning expanding or initiating operations in
Kenya or Eastern Africa. In consultations with stakeholders in the Norwegian agriculture
sector, they consider that Nortura and Geno have probably a dilemma related to
investments of business abroad. Nortura’s eventual profit abroad can lead to negative
reactions in the Norwegian market or the public, due to the fact that this subsector as most
of the agriculture sectors in Norway is receiving Norwegian State subsidies.
Based on direct signals and requests from Nortura and Geno to Norges Vel, the consultancy
team considers that these companies are potential partners to do business in Kenya and
Eastern Africa. In the year 2015 Norges Vel was approached by several Norwegian
businesses, Nortura and Geno being among them to start business in developing countries.
The planned activities were cancelled due to the fact that the selected country Zambia, was
excluded as a priority country by the Norwegian authorities and the Norwegian embassy.
This previous initiative gives the consultants the reason to believe that these organizations
have intentions to start business in foreign countries such as Kenya. However, some
organizational motivation and external support is needed. Table No. 2 shows the business
opportunity and potential partners for the meat sub-sector.
Table No. 2: Potential partners for meat sub-sector
technology/service
Potential Kenyan companies/partners Potential Norwegian
companies/partners
Beef Production Manbros Agencies Limited:
www.manbrosagencies-co-
ke.business1.com
Profresh Exports Limited:
www.profreshexports.com
Abdurahman:
www.abdurahman.business1.com
Aflah Importers And Exporters
www.aflah-importers-and-.business1.com
Nortura SA
www.nortura.no
Geno SA
www.geno.no

17
3.3. The Available Business Opportunity in Dairy Sub-sector
Improvement of Dairy Cooperatives’ mutual collaboration, networking and strengthening
their comparative advantages.
Kenya has a huge demand for milk due to the high annual per capita consumption of milk of
110 liters. There are business opportunities for medium to large-scale milk production. This
calls for strategic collaboration and networking between Kenyan Dairy Sector Cooperatives
and Milk Marketing Societies and their counterparts in Norway.
A strong dairy and agricultural cooperative movement and strong farmers’ unions may
partially explain the development of the agricultural sector in Norway. The Norwegian dairy
farmers and other farmers have consistently influenced the sector’s economy and enjoyed a
fair share of the markets.
The key stakeholders in the Dairy Sector in Kenya and East Africa include the following:
a) Githunguri Dairy Farmers Cooperative Society Limited: The Society Trades in
Fresha dairy products. Fresha Dairy Products are the flagship products of Githunguri
Dairy Farmers Cooperative Society which was registered in August 1961 with an
initial membership of 31 small-scale dairy farmers to collect and market member’s
milk. The society started with a single collection center located at Githunguri town
but have increased to over 76 collection centers and over 6 cooling centers spread
across the catchment area. The society has over 58 store outlets spread in the
catchment area for provision of dairy farm inputs and household consumables to
members on credit. Currently the cooperative has grown tremendously to over
23,000 registered members who practice a zero-grazing dairy farming method,
annual turnover of over USD 59 million (KES 6 billion) and an average of over
230,000 litres of milk per day. In July 2004 the society commissioned its own milk
processing plant and was able to access wide market through value addition and
wide range of dairy products. The investment resulted from members contributing
Kshs 2 for every litre of milk sold. Today Fresha has revolutionalized the Dairy
industry in Kenya.

18
b) Meru Central Dairy Farmers Co-operative Union Ltd (MCDFCU) was registered
under the Co-operative Societies Act 14
on 23 May 2005. Prior to that, it was an
activity of the former giant union known as Meru Central Farmers’ Cooperative Union
(MCFCU). MCDFCU is formed by twenty-six DFCSs and has around 40,000 members.
Its core business is milk processing and marketing: It receives milk from the twenty-
six DFCSs as well as from forty self-help groups and eight non-affiliated societies.
The main area of operation of MCDFCU is Meru County, especially the sub-counties
of Imenti North and South. It also collects milk in Tharaka Nithi County that is part
of the former Greater Meru District, and socio-economically and culturally similar. In
addition, MCDFCU has contracts with some cooperatives outside the Meru region
(close to Nyeri) for supply of raw milk. MCDFCU also offers artificial insemination, as
well as supplying animal feeds and field extension services to the members of its
affiliated DFCSs.
The promoters of the opportunity include:
a) Kenya Dairy Board: The Kenya Dairy Board is a statutory organization established
under the Dairy Industry Act Cap 336 of the laws of Kenya to Regulate, Develop and
Promote the Dairy industry in Kenya. 15
b) Department of Veterinary Services: This is a government agency charged with the
responsibilities of addressing SPS issues in the dairy sector, implementing
traceability policies, implementation and enforcement of dairy regulations, sharing of
information with dairy stakeholders, farmer registration and accreditation of Business
Development Services. 16
c) Department of Livestock Development: this is a governmental entity that deals with
extension services, farmer registration, animal nutrition and information sharing. 17
d) Central Artificial Insemination Station (CAIS): is a semi-autonomous agency that is
tasked with promoting breeding services, registration of livestock and sharing of
information. 18
3.3.5. Potential Norwegian partners
Kenyan dairy farmers will greatly benefit from a strategic cooperation with their Norwegian
counterparts especially through knowledge; expertise and experience transfer in dairy
14
National Council for Law Reporting, 2012
15
www.kdb.co.ke.
16
www.ilri.org/ilrinews/index.php/archives/tag/kenya-department-of-veterinary-services
17
www.kilimo.go.ke/livestock
18
www.kagrc.co.ke

19
cooperative modeling and development. Through the strong and reliable dairy and
agriculture cooperatives in Norway, the dairy and meat sectors make up two-thirds of
Norwegian agricultural production, and in both sectors, the farmer-controlled co-operatives
TINE SA (TINE) and Nortura are strongly involved in state regulation, policy formulation,
price control and marketing which still has a leading role in the development of Norwegian
agriculture. Norway’s dairy industry is positioned to respond to key challenges around food
security, energy and climate change. Such expertise and lifetime tested practices and
experience will not only strengthen the dairy sector in Kenya but will go a long way into
transforming the dairy sector for sustainable productivity and wealth generation for farmers,
processors, traders and dealers in dairy and dairy products.
Unlike Norway where TINE and Nortura are the leading farmers’ cooperatives, Kenya
cooperative sector is highly segmented with almost every farming region having its own
Dairy Cooperative Society. This limits the farmers’ capability to influence trade and business
in dairy and dairy products, especially in milk price control, marketing and market control
and policy formulation and implementation among others.
As previously mentioned in the part concerning meat subsector, Nortura’s limitations will
also be valid for TINE. While Nortura is already doing business in Kenya, TINE is not
operating in Africa. The involvement of these Norwegian cooperatives in Kenya and or East
Africa will also be a great step for the internationalization of Norwegian companies in the
agriculture sector. For the involvement of TINE and Nortura in business two factors have to
be taken into account which are, production mechanisms (in relation to production modes,
type of crops, climate and geography) and the political situation since these cooperatives
receive subsidies from the Norwegian government. Nortura experiences in Africa and TINE’s
sister organization in Sweden Arla Foods amba (Arla)19
operation at international level
(operate in 21 countries including Middle East and Africa) can be positive factors to
challenge Nortura and TINE to start or expand their business in Kenya.
Kenya Dairy Board is tasked with the responsibility to promote dairy production, market
access and value addition in the dairy sector. One of its core-mandate is to mobilize and
organize farmers into cooperatives and marketing societies through the state department of
cooperative development and marketing. Under their financial provision in the Kenya Dairy
Board Act, it is empowered to hire consultancy services locally and internationally to
promote its mandate. The consultancy team considers that Norwegian companies and the
Kenya Dairy Board should be approached and requested to finance this business opportunity.
Table No. 3 shows the business opportunity and potential partners for the dairy sector.
19
Arla: is as dairy company where farmers are owners of the company and suppliers of milk.

20
Table No. 3: Potential partners for dairy sector
technology/service
Potential Kenyan
companies/partners
Potential Norwegian
companies/partners
Improving Dairy
Cooperatives’ Mutual
Collaboration, Networking
and Strengthening their
Comparative Advantage in
the Dairy Sector
Kenya Dairy Board:
www.kdb.co.ke
Meru Central Cooperative
Society Limited:
www.agriterra.org/meru-dairy-
cooperative-in-kenya
Githunguri Dairy Farmers:
Cooperative Society Limited
www.fresha.co.ke
TINE SA:
www.tine.no
Nortura SA:
www.nortura.no
4. BUSINESS OPPORTUNITIES IN HORTICULTURE SUB-SECTOR
This sub-sector includes:
a) Flowers and
b) Vegetables and fruit.
The horticulture sector which is a mix of consumables (fruit, vegetables, nuts and medicinal
plants) and non-consumables (flower goods) has recorded significant export-driven growth
and has a direct and significant contribution to Kenyans GDP. Agriculture contributes 27%
to overall national GDP in Kenya, with horticulture covering 14% of agricultural GDP out of
which 7% is contributed by flowers. The industry directly employs about 90,000 people and
indirectly some 500,000 of Kenya’s estimated population of 46 million in 201620
. The main
production areas are around Lake Naivasha, Mt. Kenya, Nairobi, Thika, Kiambu, Athi River,
Kitale, Nakuru, Kericho, Nyandarua, Trans Nzoia, Uasin Gishu and Eastern Kenya.
There are more than 5 million smallholders engaged in different types of agricultural
activities in the country. Estates and plantation farms of various sizes are few and make up
a smaller part of the sector.
20
The World Bank, World Development Indicators (updated 27 April 2017). Kenya, Total population.
Retrieved on April 30th
2017 from www.data.worldbank.org/country/kenya

21
A national “Review of Performance of Horticultural Crops by Category” conducted in 2014
indicates that the domestic value of vegetables (Irish potatoes, tomatoes and cabbage)
have a contribution of 36 percent, fruit (banana, mangoes, pineapples, avocado, pawpaw,
oranges, water melon, and passion fruit) contributed 26 percent while nuts contribution was
5 percent (with an increase from previous years).
Floriculture is one of the fastest growing subsectors in the agriculture sector and is a key
area in achieving the Kenya vision 2030. In 2014, the subsector contributed USD 587
million21
(KES 59.9 billion) accounting for 30 percent of the domestic value of horticulture.
This was a 7 percent increase in value as compared to USD 548 million (KES 55.95 billion)
realized in the year 2013.
Despite the important role that the sector plays in the economy, it continues to face major
challenges in areas related to productivity, land use, access to markets and limited
application of agricultural technology and innovation.
In general terms the horticulture value chain of Kenya includes all processes related to
farming, post-harvest management, transport from farm to market, distribution channels at
both national and international levels, retails and consumers. Further, the identified
component parts of a value chain are by themselves business opportunities and will
contribute to:
• Identifying potential business opportunities for investments.
• Identifying bottlenecks and the necessary improvements needed for better chain
optimization and performance.
• Providing a framework that can enable analysis in the spread of benefit for the various
actors in the chain.
There are few large-scale flowers producers that are integrated across the entire value
chain who produce own plant stock. Large-scale estates also leverage their size and
economies of scale to invest in sophisticated post-harvest cold-supply chain infrastructure
including refrigerated trucks for transportation to airport. In several cases there are also
producing vegetables and fruit for both local market and export as a way of diversifying
farm income. On the other hand, small-scale growers have been experiencing an ad-hoc
value chain which relies heavily on the Dutch auction system in Holland. Cooperative and
21
Exchange rate USD 1.00 = KES 102.00. The Kenyan Central Bank Indicative Exchange Rates
(mean) as of 4th
January and 31st
December 2016 were respectevely KES 102.2948 and KES
102.4858. Retrevied on April 30th
2017 from www.centralbank.go.ke/rates/forex-exchange-rates.

22
informal merchants sometimes act as middlemen aggregating volume for transport to
market.
a) The Flower industry
The flower sector in Kenya has the potential to continue to play an important role in private
sector development and employment creation. The commercial high quality development of
the flower sector in Kenya started in the early 90’s with a great contribution from the Dutch
companies and with the support from the Dutch government to Dutch companies
participating in Dutch programme promoting productive employment in developing
countries. The sector rapidly developed as a commercial independent industry without any
financial support from Dutch or Kenyan states. The companies currently operating in the
sector consist of SMEs and large multinational companies.
The sector has been important for the creation of not-yet-productive, but substantial,
employment in Kenya. In total, floriculture generates about 90,000 jobs directly at flower
farms and about 500,000 indirectly. Through backward linkages, the floriculture industry
has an impact on over 2 million livelihoods (or 5% of the Kenyan population), according to
the Kenya Flower council. 22
The producers perform high skilled activities such as breeding (developing new varieties),
propagation (multiplying by any process of natural reproduction from parent stock plants)
and growing plants. Growers’ farms provide the highest employment opportunities.
The main cut flowers grown in Kenya are roses, carnations, and Alstromeria. Other flowers
cultivated include, Gypsophilla, Lilies Eryngium, Arabicum, Hypericum, Statice and a range
of summer flowers amongst many others. The flower industry comprises large, medium and
small-scale producers who have attained high management standards and have invested
heavily in value addition through adoption of modern technology in production, precision
farming and marketing.
Farmers utilize technologies some of which include drip irrigation, fertilization systems,
greenhouse, ventilation systems, net shading, pre-cooling, cold storage facilities, grading,
packing–bouquets facilities, fertilizer recycling systems to prevent wastage, wetlands for
waste water treatment, artificial lighting to increase day length, grading/packaging sheds,
and refrigerated trucks.
22
Kenya Flower Council Website

23
The overall identified challenges of the floricultural subsector include:
At the productivity level: there is a need for improvement in horticultural cultivation
techniques (productivity), market information, assortment (new varieties), biosecurity,
sustainability, energy efficiency, logistics and communication technology.
Saturation: With more than 150 companies operating in the flower sector, the trend is to
expand or acquire existing businesses, rather than start from scratch (especially considering
the high business entry costs). This leaves little space for the inclusion of smallholder
farmers and new companies.
Overregulation and certification: There are many different sector standards and lack of
clear and often-contradictory regulations, which create fertile ground for corruption by the
controllers. Furthermore, despite the many advantages of the various types of certification,
obtaining a certificate is a costly process beyond the reach of most small companies,
newcomers and smallholder farmers who wish to access international markets.
Trade union: Corruption and nepotism in the high ranks of the flower industry trade union,
negatively impact on inclusiveness and the union’s representation of the interests of all the
members. This may lead to the mass dismissal of the employees, introduction of
mechanization processes (like in the tea sector) or relocation of the entire business to
neighboring countries like Ethiopia.
b) Vegetables and fruits
The vegetable sub-sector is important in attaining food security and improving livelihood for
smallholder farmers who produce 100% of the African vegetables and up to 70% of the
Exotic and Asian vegetables. The major vegetables produced in Kenya are: Irish Potatoes,
tomatoes, cabbages, snow peas, kales, spinach, runner beans, French beans, carrots,
broccoli, indigenous vegetables, and Asian vegetables. In terms of enterprise value per acre,
tomatoes are the most lucrative, followed by cabbages and French beans.
Several factors hinder the potential of the industry. These include multiple taxation regimes,
low incentives in terms of local market prices, high costs of inputs as well as water, energy,
the cost of air freight; a generally unregulated environment leading to produce poaching
and lack of quality control for local produce. Agro-processing, packaging and quality
standards in the domestic market are also not fully developed. There is need to invest in
better production methods, post-harvest care and quality to improve consumer acceptance
of produce in order to earn higher value.

24
Domestic trade is an important source of livelihood for players in the horticultural value
chain. The major actors involved in trade are producers, traders, middlemen, transporters
and local authorities. The margins between farm gate prices and consumer prices are wide.
Margins for the producer are small and indicative of suppressed profitability. Many markets
have inadequate physical facilities and do not therefore provide facilities like storage and
cold rooms, weighing equipment, loading/unloading and social amenities.
The performance of traditional wholesale markets greatly affects the costs, prices, and
distribution of benefits throughout the production and marketing system. The bulk of the
costs in the vegetable trade occur in the wholesale and distribution segment of the value
chain. Wholesale marketplaces are also where significant inefficiencies in the value chain
are concentrated. Furthermore, cooperation between all actors along the value chain is low.
Most operate individually without the support of farmer or business organizations or
contractual agreements.
This desk study was limited in some cases by the lack of data. Information asymmetry
among market players distorts market prices, reduces producer margins, skews trade
benefits toward middlemen and traders, and blocks entry of new market players while
increasing the wide gap between the farm gate and market price. This makes the sector
non-transparent and effectively blinds value-chain participants to both national and regional
market opportunities and encourages informal transactional trading systems. It also has a
negative impact on food security.
The lack of basic standards and/or awareness of existing standards for most products
makes transactions less transparent and affords buyers/traders the opportunity to set their
own standards and secure an advantage in the producer-buyer relationship, which breeds
mistrust between value-chain participants.
4.1. The Available Business Opportunity in the Floricultural Sub-sector
4.1.1. Business opportunity
An “Innovative Horticultural Programme” on innovation in technology, business models and
practices.
4.1.2. Description of the business opportunity
In order to promote an increase in the number of Norwegian enterprise doing business in
Kenya, a sector specific programme to engage Norwegian actors is needed. An “Innovative

25
Horticultural Programme” focusing on innovation in technology, business models and
practices will be essential to attract Norwegian enterprises to this sector in Kenya.
The proposed programme aims to balance funding needed for short-term research and
development (R&D) and the long-term strategic R&D activities through the adaptation,
development and implementation of new technologies and science that benefits Norwegian
investment in Kenya and enhance the Kenyan agriculture value chain.
The proposed programme will pursue an increasing interaction between Norwegian and
Kenyan horticulture related stakeholders. The stakeholders are related to but not limited to
the agricultural education systems, research and extension system, NGO’s and rural
organizations, governmental institutions, public and the private industry, co-funding
agencies and will work with identified areas of interest. Some areas that need special
attention include the short-term innovative horticultural investment approach in R&D, which
will support projects that have less technical risk and projects that target transformational
R&D. The approach will focus on the potential of making a significant impact to the benefits
of the industry. Funds may be limited to those projects where Norwegian enterprise can
team up with similar partner enterprise and institutions in Kenya.
The business opportunities are consistent with the information gathered for the horticulture
sector of Kenya and represent a great start for R&D that can contribute to tailor Norwegian
products to enter the horticulture market of Kenya and reduce the investment risk, as
follows:
a) Increase the efficiency and sustainability of the industry. New actors and products
are needed to address everyday need of the industry in areas related to crop
production, pest and disease management and sustainability and energy efficiency.
b) Improving productivity of the supply chain through innovative technologies (seed
production, breeding, biotechnology, mechanisation, robotics and precision
agriculture).
c) Growing the horticulture value chain capacity by discovering, developing and
deploying innovative technology to increase domestic and international advantage
and profit for growers.
d) Improving waste management through transformation of agricultural and water
waste into agricultural inputs (fertilizer and bioenergy are good examples).
e) Increasing long term domestic and export growth by trading. Product integrity/origin
approach ensures that products are of the highest quality and the social and
environmental benefits, drive market activities awareness of both domestic and new

26
specialized markets (e.g. Mester Grønn and Fair Trade Norge where awareness
campaigns increase sale and position in the preferential market on valentine’s and
women’s days).
Through a strategic alliance, Kenyan companies can establish direct commercial links with
Norwegian enterprises, based on complementary interest in order to facilitate information
and knowledge about the Norwegian market preferences and demands. The Norwegian
companies’ interventions as partners and investors should increase the effectivity of the
value chain in Kenya, based on the principle of producing according to the market demands.
There are similar institutions in Kenya that work with others using policies issued for an
enabling business environment.
The Kenya National Chamber of Commerce and Industry (KNCCI) is a membership based
Trade Support Institution (TSI) working to protect commercial and industrial interests of
Kenyan business community. KNCCI advocates for the creation of a favourable commercial,
trade and investment environment that supports enterprise expansion. The membership of
KNCCI constitutes, micro and small enterprises (MSEs), medium and large enterprises.
The Kenya Private Sector Alliance (KEPSA), is the private sector apex and umbrella body set
up in 2003 to bring together business community in a single voice to engage and influence
public policy for an enabling business environment. KEPSA is a limited liability membership
organization.
With current membership of over 100,000 direct and indirect members organized through
Business Membership Organizations and Corporate members, KEPSA is a key player in
championing the interests of the Kenyan business community in trade, investment and
industrial relations.
4.1.4. Promoters of the opportunity
The leading promoter is Kenya Flower Council and Kenya Export Promotion Council (EPC).
The Kenya Flower Council is a voluntary association of independent growers and exporters
of cut-flowers and ornamentals, established in 1996, with the aim of fostering responsible
and safe production of cut flowers in Kenya with due consideration of workers’ welfare and
protection of the environment. Against this background, the Council has become the focal

27
point for industry representation, promotion, and compliance to pertinent local and
international standards deemed necessary to secure, expand and sustain markets. 23
The Export Promotion Council (EPC) is Kenya’s premier institution in the development and
promotion of export trade. Established in 1992, EPC’s primary objective is to address
bottlenecks that exporters and producers of export goods and services face with a view to
increasing the performance of the export sector in Kenya. The Council is therefore
established for the purpose of giving an outward orientation to an economy that was
hitherto inward looking. Over time, the EPC has fully embraced the mandate of coordinating
and harmonizing export development. It also provides leadership to all national export
programmes. Today, EPC is the focal point for export development and promotion activities
in the country. EPC will remain instrumental so far as export business and trade is
concerned. 24
The assessed studies show that Norwegian companies have expertise in technology and
business know-how in the value chain that is valuable for the Kenyan producers and other
stakeholders. By complementing Norwegian companies will enhance production and
generate more income and supply quality products required by the local and Norwegian
market.
In Norway, Innovation Norway is the Norwegian Government's most important instrument
for innovation and development of Norwegian enterprises and industry. It provides services
to Norwegian companies with international ambitions and it supports these companies with
the necessary information related to different financial funds available for Norwegian
companies that seek to enter new markets. It has international market advisors in more
than 30 countries including Kenya that are ready to help Norwegian companies with
strategic advice and operational assistance during their internationalization processes.
Innovation Norway also has valuable experience in the administration of grants that target
among others the development of an innovative agricultural sector in Norway as well as a
facilitator for internationalization of Norwegian product. However, there is not a specific
grant program that promotes an increase in R&D activities for Norwegian enterprise
targeting the African continent, including Kenya. If a proposed R&D program is of relevance
there will be a need to gather Innovation Norway and financial support partners’ experience
which can tailor the content of a required R&D program for Kenya.
23
www.kenyaflowercouncil.org
24
www.epckenya.org

28
Since 2012, the Norwegian-African Business Association (NABA) has been seeking to
promote business opportunities on the African continent and serves as a bridge between
Norwegian and African business communities. Information from its website indicates that
NABA will work to increase more efficient and less risky trade between Norway and Africa by
increasing among others knowledge about doing business in Africa.
NABA is already working with Innovation Norway to increase business awareness among
Norwegian enterprises on Africa. They also host the secretariat (together with the
Norwegian Council on Africa) for the Norwegian Parliament’s All-Party Africa Group,
established in May 2016. Agriculture is one of the areas of interest for NABA. They have
been able to attract the attention of large Norwegian enterprises such as Yara AS, BAMA
Gruppen AS (BAMA) among others. NABA will continue as a supplement institution for
increasing awareness activities and can be more country specific. They are planning to
present the content during the 2017 African summit Conference in Oslo.
In direct communication with a NABA representative, the 2017 NABA conference will focus
on areas related to finance, technology and energy in Africa. It is still possible to tailor even
more opportunities in the content for the conference and they welcome new ideas in areas
related to agriculture. They are also willing to accept recommendations from their partners
on how Norwegian technology or energy enterprises can contribute to the development of
the agricultural sector. NABA will also have matching enterprise activities during the
conference. Table No. 4 shows the business opportunity and potential partners for the
floricultural sub-sector.
Table No. 4: Potential partners for the floricultural sub-sector
technology/service
Potential Kenyan
companies/partners
Potential Norwegian
companies/partners
Increase awareness and
enabling business
environment for
Norwegian investments
The Kenya Flower Council:
www.kenyaflowercouncil.or
The Kenya National Chamber of
Commerce and Industry:
www.portal.kenyachamber.or.ke
The Kenya Private Sector Alliance:
www.kepsa.or.ke
The Export Promotion Council (EPC):
www.epckenya.org
Norwegian-African
Business Association
www.norwegianafrican.no

29
4.2. The Available Business Opportunity in Vegetables and Fruits Sub-sector
Agro-processing and packaging technologies, Greenhouse production and product
transportation.
Agro-processing and packaging technologies: these are relatively undeveloped among
many businesses in Kenya, however it is also relevant to mention that some foreign
companies established in Kenya are using advanced technology to satisfy especially the
export market. Deliberate efforts need to be made towards investing in this area to increase
produce shelf life, reduce postharvest losses, and improve consumer acceptance both in the
domestic and international markets. Generally, few vegetables are packaged and handled
properly. Transport and handling costs remain high due to their fragility, high perishability
and often very short shelf-life. Product and produce branding of horticultural produce with
unique attributes e.g. organic products, should be undertaken to promote local consumption
and leverage on emerging middle class consumers and growing urbanization.
Greenhouse production: this could be a good opportunity to curb the seasonality/price
fluctuation and volatility of produce. The unavailability and seasonality of produce is one of
the major imperfections that were brought up by both consumers and retailers. Larger
greenhouse capacity might mitigate this and respond to other opportunities in the market.
Transport: this is another issue with potential for improvement as appropriate fresh
produce transporting vans (refrigerated Lorries) could curb the current transport challenges.
Horticultural product requires to be stored and transported at the prescribed temperature
and humidity levels for each produce. In addition, transport costs escalate produce-selling
price. Currently lack of storage facilities accounts for the majority of vegetable waste.
Supermarkets: at the national level, supermarkets are the most popular purchase
channels for vegetables for high and middle-income earners. This may be the best entry
point for investors as Kenyan supermarkets are still small. However, it is growing very fast
and it is expanding to other countries in the region (Uganda, Tanzania, Rwanda),
establishing branches of Kenyan supermarket chains like Nakumatt, Uchumi and Tuskys.

30
Leading Kenyan partners in fruits and vegetables production, processing, packaging and
exporting include the following under-listed firms and entities:
(a) Kenya Fruits Exporters Limited: Kenya Fruits Exporters is Kenya’s leading fresh fruits
and vegetables export company, with an aim of being the lead exporter and grower
of fresh fruits and vegetables in Kenya.
(b) Fresh Green Growers Kenya Limited: Fresh Green Growers K Limited is located in
Nairobi, Kenya whose primary focus is the export of fresh fruits and vegetables to
the Eastern African region. The Company specializes in the supply of fresh fruits such
as Avocado’s & Mango’s. Its main vegetable export lines are French Beans, Sugar
Snaps & Mange tout.
(c) Goshen Farm Exporters Limited: Goshen grows, packages and exports numerous
quality horticultural products (fruits, vegetables and flowers) from Kenya to various
destinations the world over.
(d) Sunripe (1976) Limited: Sunripe (1976) Ltd is a vertically integrated independent
grower, processor, exporter and marketer of fresh vegetables, fruits and flowers.
Fresh Produce Exporters Association of Kenya (FPEAK): The Fresh Produce Exporters
Association of Kenya (FPEAK) is Kenya’s premier trade Association representing growers,
exporters and service providers in the horticulture industry. Formed in 1975, when export
horticulture was in its infancy, the Association has grown to become Kenya’s foremost
sectoral trade association. Members of the Association are involved in growing and/or
exporting fresh cut flowers, fruits, and vegetables. FPEAK provides a focal and coordination
point for the horticulture export industry as well as technical and marketing information and
training. They act as an information centre, and run active lobbying and advocacy. 25
The most important potential partner in Norway is BAMA Gruppen AS (BAMA), a Norwegian
wholesale private distributor of fruits, vegetables and flowers. The director of BAMA who
was contacted by the consultancy team has expressed a general interest in collaborating
with vegetable producers from Kenya to promoting and scale up business activities. The
company is also willing to consider participating in R&D programmes that focus on
increasing quality and post-management practices to develop products that suit Norwegian
market. In the case of flowers, there already exist well established commercial activities
25
www.fpeak.org

31
and according to the director of BAMA flower division they would like to consider activities
that target an increase of market awareness and consumption.
BAMA AS is Norway's largest private distributor of fruit and vegetables. The 130 years old
BAMA, is engaged in wholesale trading of imported and Norwegian-produced fresh
vegetables, fruits and flowers. The company has five divisions; retail, industry, institutions,
flowers and selected specialist shops. On the retail market, it delivers produce to the two
wholesalers Norgesgruppen and Reitangruppen. About 69 percent (2015) of fresh products
processed by BAMA are imported and 31 percent is produced in Norway. BAMA Gruppen
imports product from 85 countries and Kenya is one of them. Kenyan flowers accounts for
80% of the roses sold in wholesale in Norway, with sweet peas accounting for less than 3%.
Annually they are processing about 500, 000 tons of fresh products and delivering these
products ready for consumption to 15, 000 customers in Norway. Most of BAMA
International businesses are located in the Netherlands, where Nature’s Management BV (a
holding company) has sold exotic fruits, vegetables and berries to the European market
since 2001. Imports and sales activities have been performed through the company
Nature’s Pride, which moved into a new, modern terminal building together with Nature’s
Packing in November 2013. Import of vegetables and fruit from Kenya are managed and
coordinated from the Netherlands.
Furthermore, in 2014 BAMA decided to strengthen its position within a wide selection of
quality flowers for consumers. BAMA purchased shares in their Dutch partner Xpol BV with
operations in Kenya. By doing so the company offers fresh quality products from farmers in
Africa to Norway and Europe directly. In 2014 BAMA Flower holding entered into a
partnership with Interflora Norway to strengthen its position within the specialist flower
trade. As a result Interflora Norway share 34 percent of Floriss-BAMA specialist flower shops
and the parties entered into a binding collaboration on goods flow and supply. The aim is to
become the market leader in the specialist trade and - deliveries to both the commercial
and private market.
BAMA is also an active member of the Ethical Trading Initiative Norway (IEH). The BAMA
business model has been tested internationally through BAMA International Office and
produced positive results. BAMA has significant investment in research and development
activities that strengthen the company’s efficiency and sustainability.
The BAMA Group collaborates with skilled and innovative producers with leading
development and research bodies and with customers who appreciate the value of offering
an extensive selection of fruit and vegetables. BAMA’s participation will be based on know-

32
how to develop new products, appropriate packaging, efficient logistics solutions and
targeted marketing. The model which is illustrated in figure 1 should be a great source of
knowledge for partners in Kenya.
Nofima AS is one of the largest institutes for applied research within the fields of fisheries,
aquaculture and food research in Europe. Nofima is working with technologies and methods
to ensure safe food that maintains a high quality for as long as possible.

33
Figure No. 1: BAMA model26
26
Source: www.bama.no

34
Based on the online research on Kenyan Horticultural companies, there are few companies
exporting directly to the European market and may be potential partners in Kenya.
Areas of expertise required in the horticulture (vegetables and fruit sub-sector) include:
a) Knowledge and experience in wholesale trading of imported and Norwegian-produced
fresh vegetables, fruit and flowers, including exotic fruits, vegetables and berries.
b) Development of own business model that includes a system for close control of the
goods flow.
c) Combined research and development activities to strengthen the company’s
efficiency and sustainability.
d) Collaboration with skilled and innovative producers.
e) Applied research in food production using technologies and methods that ensure safe
and quality food.
Table No. 5 shows the business opportunity and potential partners for vegetable and fruit
sub-sector.
Table No. 5: Potential partners for vegetal and fruit sub-sector
technology/service
Potential Kenyan
companies/partners
Potential Norwegian
companies/partners
Increase the efficiency
of agro-processing and
packaging technologies
Kenya Fruits Exporters Limited:
www.kenyafruitsexporters.com
Fresh Green Growers Kenya Limited:
www.freshgreengrowers.com
Goshen Farm Exporters Limited:
www.goshen.co.ke
Sunripe Limited:
www.sunripe.co.ke
BAMA Group:
www.bama.no
Nofima:
www.nofima.no
5. OTHER BUSINESS OPPORTUNITIES IN THE AGRICULTURE SECTOR
5.1. Other Business Opportunity: Containers and equipment
5.1.1. Business opportunity:
Containers for waste management and transportation of products, and modular buildings for
the Kenyan agriculture sector in, particular horticulture.

35
The Kenya National Solid Waste Management Strategy (2015) advocates for a waste
management system that is anchored on the 7R oriented society, by Reducing; Rethinking;
Refusing; Recycling; Reusing; Repairing and Refilling their waste. This strategy calls for
significant investment in innovative solid waste management systems, especially in Kenya’s
urban centers.
The waste management strategy proposed is in full compliance with the Environmental
Management and Coordination Act of 1999 and Environmental Management and
Coordination (Waste Management) Regulations of 2006 as it ensures a clean and healthy
environment for all, keeping in line with Article 42 of the 2010 Constitution of Kenya.
After consulting the Kenyan expertise, we found that the Kenyan companies have come up
with waste management ventures that are compatible with some Norwegian Companies.
One good example is Colnet Kenya Limited. Colnet Kenya Limited is a Small and Medium
size (SME) Company that deals with:
a) Commercial Waste Management
b) Residential Waste Management
c) Manufacturing and Industrial waste management
d) E-Waste Management
e) Hazardous waste management
f) Sewage Disposal
g) Environmental Consultancy and
h) Asbestos removal and disposal.
The company offers a full range of containers to suit individual waste production and
management needs, a position that best fits with the Norwegian company BNS Container AS
(BNS). Equipment and other products such as modular buildings also offer interesting
opportunities for the Kenyan market.
Kenyan promoters that support initiatives related to this business opportunity are:

36
a) Ministry of Environment and Natural Resources. 27
b) National Environment Management Authority (NEMA). 28
c) County Governments’ Departments of Environment and Public Health. 29
BNS is one of the leading Norwegian companies that deals with container products. Many of
BNS products are suitable for the agriculture sector. Among the most important products
are: waste container, settling container (purifies contaminated water from tunnels and
excavation pits), refrigeration and freezer container, Swap-Body (a standard shipping
container for road and rail transport), Health, Safety and Environment (HSE) container and
modular buildings for office and commercial buildings. BNS are willing to start business and
are currently looking for opportunities in the East and Southern African market. Since BNS
products are suitable for several subsectors in the agriculture sector, we consider that BNS
is in position to collaborate with established companies in Kenya. Table No. 6 shows the
business opportunity and potential partners for containers and equipment.
Table No. 6: Potential partners for containers and equipment businesses
technology/service
Potential Kenyan
companies/partners
Potential Norwegian
companies/partners
Containers and equipment Colnet Kenya Limited:
www.colnetkenya.co.ke
BNS Container AS:
www.bns-container.no
5.2. Other Business Opportunity: Green Houses
Green houses with capabilities to tolerate strong wind and heavy rains suitable for Kenyan
Market.
Climatic changes make production and planning within agriculture difficult. Kenya lies on the
Equator, but with the land rising from sea level to over 5,000 meters, climate varies across
the country. Broadly, there are four main land-types and climate zones:
a) Central Highlands and Rift Valley: Most of Kenya’s agricultural output especially tea
is grown in this region, which has fertile soils and a high annual rainfall in the
27
www.environment.go.ke
28
www.nema.go.ke
29
www.narok.go.ke

37
mountains (up to 3,000mm). This rain feeds into the lakes of the Rift Valley.
Average daytime temperatures in Nairobi (altitude 1,661m) are between 21-26°C.
b) Western Kenya: Western Kenya is hot and wet throughout the year, with annual
rainfall over 1,000mm and average daytime temperatures in Kisumu of 27-29°C.
c) Northern and Eastern Kenya: Here the land is hot and arid, with vast ‘lake’
beds/deserts of lava, sand, salt and soda. Average annual rainfall is less than
510mm and daytime temperatures are mostly in the 30s°C, soaring to 39°C in some
desert areas.
d) Coastal Belt: Kenya’s beaches are hot and humid, but tempered with cooling sea
breezes. A narrow plain of land along the coast is suitable for crops such as fruits,
nuts and cotton, before the terrain becomes semi-desert. Annual rainfall is usually
over 1,000mm and daytime temperatures in Mombasa average from 28-31°C.
According to Amiran Kenya Limited, Green Houses will have positive effects in hot and warm
areas such as Mombasa, Kitui, Kisumu, Homa Bay, Machakos and Garissa Counties. Amiran
Kenya, is the largest of the Balton CP companies. It has been in Kenya since independence
in 1963 and has been a driving force behind the Kenyan agriculture and horticulture sectors
from their very beginnings. One of East Africa's largest Agricultural 'one stop shops', Amiran
plays a key role in the creation of Kenya's, world leading, flower sector and horticulture in
general. Seen as a center of excellence in agriculture, Amiran is leading a paradigm shift in
focus towards small-scale farmers, which is being replicated throughout Sub-Saharan Africa.
Other companies in the region benefit from the strong support provided by Amiran. As a
leader in Green House Farming Technology in the African Region, Amiran will be a suitable
partner for the Arctic Tunnel in the promotion and advancing of Green houses with
capabilities to tolerate strong winds and heavy rain.
Promoters here include:
a) Ministry of Agriculture, Livestock and Fisheries of the Government of Kenya. 30
b) Ministry of Agriculture, Livestock and Fisheries of the respective County
Governments in Kenya. 31
c) Kenyan Plant Health Inspectorate Services. 32
d) Kenyan Investment Authority. 33
30
www.kilimo.go.ke
31
www.kilimo.go.ke
32
www.kephis.org

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