July 1, 2024

US to fund Kenya’s export market under a $160 million (Sh22.6 billion) initiative

3 min read
US to fund Kenya's export market under a $160 million (Sh22.6 billion) initiative

US government in a $160 million (Sh22.6 billion) initiative plan to help Kenya grow the avocado export market

US government in a $160 million (Sh22.6 billion) initiative plan to help Kenya grow the avocado export market.

The American government through United States Agency for International Development (USAID) will help Kenya expand its avocado export market under a $160 million (Sh22.6 billion) initiative.

In order to ensure that there are sufficient quantities to sustain the export market when the supply from Latin America is out of season, according to (USAid) Chief of Staff Robert Mwadime, the organization is aiming to increase avocado acreage in western Kenya.

Dr. Mwadime claimed that it is challenging for Kenyan avocados to compete with those from Mexico and Peru, which command high prices and arrive on the market concurrently with these leading producers, thereby driving down the price of the Kenyan crop.

The majority of Kenya’s avocados are grown in the central region, although they arrive on the market at the same time as those from Mexico and Peru.

“We are planning to increase avocado production in western Kenya counties to ensure Kenya’s seasons start in January to take advantage of the off-season by major world producers,” he said.

By promoting competitive, inclusive, and resilient market systems in the horticulture and dairy industries, USAid hopes to increase agricultural production by providing over 100,000 avocado seedlings to farmers in western Kenya by the end of this year. This project is called Kenya Crops and Dairy Market Systems (KCDMS).

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Although the agricultural industry is the backbone of the economy, accounting for over 33% of Kenya’s GDP, producers nevertheless have to deal with challenges that slow expansion and prolong food shortages.

In order to improve agricultural market systems, foster the growth of enterprises, and promote government-level reforms that promote investment, the program collaborates with private sector actors.

Kenya’s main avocado season opens in April, meaning that there are no exports between January and March.

Dr. Mwadime said the move would also give farmers alternatives to the struggling sugar sub-sector, assuring them of a steady income.

Europe and China have remained key markets for Kenya’s avocado with the latter coming in as a key destination since the country was allowed to ship the produce to that market last year.

Kenya shipments to China hit Sh9 billion shillings from March to May this year, earning the country good returns in three months.

During the period Kenya imported seven million kilos of Avocado to China as more park houses and farms turned to the new lucrative Asian market.

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