Performance of Agricultural Sector Improved in 2015

Performance of the agricultural sector in 2015 improved against a backdrop of good weather and abundant rainfall, hence Gross Value Added improved from 3.5 percent in 2014 to 6.2 percent in 2015.   Maize production increased from 39.0 million bags to 42.5 million bags in 2015 due to adequate rainfall and reduced incidences of the Maize Lethal Necrosis Disease (MLND). Sugarcane deliveries to factories rose by 4.6 percent from 6.5 million tonnes in 2014 to 6.8 million tonnes in 2015.

The volume of exports of fresh horticultural produce increased by 8.4 percent to 238.7 thousand tonnes in 2015. The volume of marketed milk increased by 10.9 percent to 600.4 million litres in 2015. However, tea and coffee production declined by 10.3 percent and 16.0 percent, to 399.1 thousand tonnes and 41.6 thousand tonnes, respectively, in 2015. 8.2. Overall, total value of marketed production at current prices increased by 11.3 percent from KSh 333.2 billion in 2014 to KSh 371.0 billion in 2015.

Total earnings from crop sales increased by 15.5 percent to KSh 271.8 billion in 2015. Wheat earnings increased from KSh 7.6 billion in 2014 to KSh 8.2 billion in 2015. However, the value of marketed maize declined by 11.4 percent from KSh 9,604.4 million in 2014 to KSh 8,506.0 million in 2015, mainly due to lower prices paid to farmers. Earnings from cane deliveries increased by 5.5 percent to KSh 21.4 billion in 2015.

The value of exports of fresh horticultural produce increased from KSh 84.1 billion in 2014 to KSh 90.4 billion in 2015. During the period under review, the value of tea increased by 39.5 percent to KSh 118.4 billion in 2015, as a result of improved international prices. However, earnings from coffee sales decreased from KSh 16.6 billion in 2014 to KSh 12.1 billion in 2015. The value of marketed milk rose from KSh 18.8 billion in 2014 to KSh 20.7 billion in 2015. 8.3.

The value of agricultural output in real terms increased from KSh 975.4 billion in 2014 to KSh 1,014.3 billion in 2015, while that of intermediate consumption decreased by 4.9 per cent from KSh 193.8 billion in 2014 to KSh 184.3 billion in 2015. This resulted in the Gross Value Added (GVA) increasing by 6.2 percent to KSh 830.0 billion in 2015. In nominal terms, the output of Agriculture grew to KSh 2,021.7 billion in 2015, while that of intermediate consumption increased by 3.1 per cent to KSh 539.4 billion in 2015.

Total value of marketed production at current prices increased by 11.3 percent from KSh 333.2 billion in 2014 to KSh 371.0 billion in 2015. Overall, the value of marketed crops increased by 15.5 percent from KSh 235.3 billion in 2014 to KSh 271.8 billion in 2015. Marketed crops continued to account for over 70 percent of total marketed production in 2015, largely due to improved earnings from tea and horticulture exports. 8.5.

The value of marketed maize declined by 11.4 per cent from KSh 9.6 billion in 2014 to KSh 8.5 billion in 2015, mainly on account of lower prices paid to farmers. The lower prices were mainly triggered by increased production which improved largely as a result of adequate rainfall and a lower incidence of the Maize Lethal Necrosis Disease. During the review period, there was a 7.6 per cent increase in the value of marketed wheat from KSh 7.6 billion in 2014 to KSh 8.2 billion.

The value of marketed fresh horticultural produce increased from KSh 84.1 billion in 2014 to KSh 90.4 billion in 2015. This was attributed to better unit prices for vegetables and higher volumes of fruits exported.

The value of vegetables exported increased by 11.2 per cent from KSh 18.8 billion in 2014 to KSh 20.9 billion in 2015. Improved international tea prices more than offset the effects of reduced marketed production, resulting in a 39.5 per cent increase in earnings to KSh 118.4 billion in 2015. During the year under review, international coffee prices deteriorated significantly. The decline in marketed production coupled with a reduction in international coffee prices, resulted in a 27.4 per cent decrease in domestic coffee earnings to KSh 12.1 billion in 2015.

In contrast, value of marketed milk increased by 10.1 Marketed Production Chapter 8: Agriculture 146 per cent from KSh 18.8 billion in 2014 to KSh 20.7 billion in 2015 as a result of increased production.