Role of Agriculture Remains Crucial in Economic Development

The role of agriculture has been crucial in economic development and poverty reduction, yet, investments in the sector remain low and volatile.

Agriculture remains the mainstay of Kenya’s economy directly accounting for over 25 percent of GDP and indirectly, contributing 27 percent of the country’s GDP. The sector employs over 75 percent of the country’s workforce and generates nearly half of the country’s export earnings.

According to the Africa Union Maputo declarations on Agriculture and Food Security, governments committed to investing at least 10 percent of their annual budgets to agriculture which will help unlock the 6.0 percent growth potential for the sector.

Commercial Bank of Africa (CBA) hosted its third Economic Forum which focused on Food Security and Government policies geared towards Food Security, Trade and Employment.

Speaking at the forum, Mr. Jeremy Ngunze, Chief Executive Officer, CBA Kenya, said that the correlation between agriculture and economic performance remains positive and strong.

Mr. Ngunze termed the political goodwill by the government in transforming the agricultural sector through making food security a key pillar in the Big Four Agenda a welcome step in the right direction.

“As good corporate citizens, we at CBA will partner with key players in the sector that we may collectively achieve these fundamental goals,” added Jeremy Ngunze.

According to the Food and Agriculture Organization of the United Nations (FAO), Kenya has the largest, most diversified economy in East Africa with agriculture being the backbone of the economy and also central to the country’s development strategy. More than 75 percent of Kenyans make some part of their living in agriculture, and the sector accounts for more than a fourth of Kenya’s gross domestic product (GDP).

The quarterly CBA Economic Forum was launched early this year with the main objective of discussing key thematic issues regarding Kenya’s economy and policies that affect businesses.

The forum targets key decision makers in corporate and public institutions with the key focus being unpacking the Big Four Agenda.