Government Backs Agro-Industrial Push as Kakuzi Expands Value Addition

The Kenyan government has reaffirmed its commitment to strengthening agro-industrialisation and boosting exports, with Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui highlighting value addition as a key pillar of the country’s industrial development strategy.

Speaking during a visit to Kakuzi PLC orchards in Murang’a County, Kinyanjui said the government is intensifying efforts to promote processing and consumption of locally manufactured agricultural products. The strategy targets high-value crops and “superfoods” such as macadamia, avocado, and livestock products.

Kinyanjui noted that Kenya has significant untapped potential in edible oil production, particularly from macadamia and other oil crops. Expanding local production, he said, would reduce reliance on imports while advancing the government’s “Buy Kenya, Build Kenya” agenda.

“Demand for food will always be there, even in difficult times,” Kinyanjui said, praising Kakuzi’s expansion efforts for creating jobs and strengthening the country’s export capacity.

Kenya currently spends over KSh 500 billion annually on agricultural imports, including edible oils that could be produced locally. The government aims to reverse this trend by transforming the country into a net exporter of agricultural and value-added products under the leadership of President William Ruto.

Kakuzi, Kenya’s largest avocado producer and the country’s biggest macadamia orchard operator, is positioning itself to play a central role in this transformation. The company plans to double its export capacity to over $100 million annually in the medium term and is investing more than $15 million this year to expand its blueberry production from 10 to 100 hectares.

Kinyanjui also commended the company’s investment in value addition, including its daily production of 1,000 litres of cold-pressed macadamia oil.

Kakuzi Managing Director Chris Flowers said the firm is pursuing a diversification strategy focused on high-quality consumer products for both domestic and international markets. He noted that Kenya is strategically positioned to supply superfoods to regions such as the Far East, the Middle East, Europe, and the United States.

“The Kakuzi growth strategy is anchored in promoting locally produced, export-grade, value-added products,” Flowers said.

As part of its industrialisation efforts, Kakuzi has established a macadamia processing plant with a capacity of 2,000 tons of saleable kernel, alongside a cold-press oil extraction unit. The company has also expanded its product line to include ready-to-eat macadamia, cold-pressed oil, blueberries, and a newly launched loose-leaf tea brand.

The government says partnerships with private sector players like Kakuzi, alongside initiatives such as Special Economic Zones (SEZs), Export Processing Zones (EPZs), and County Aggregation and Industrial Parks, will be key to transforming Kenya’s agricultural sector into a high-value, export-driven engine of growth.