Agricultural cooperatives must help farmers move beyond fragmented production to organised marketing, value addition and stronger bargaining power if they are to earn more from their produce, Agriculture Cabinet Secretary Mutahi Kagwe has said.
Speaking recently, Kagwe called for stronger cooperatives and farmer aggregation systems to address fragmented landholdings, inadequate storage infrastructure and weak market linkages.
He said Kenya’s agricultural transformation should focus not only on increasing production but also on ensuring farmers capture more value through processing, value addition and organised marketing.
“Our approach is not simply about producing more, but about earning more from what we produce,” he said.
Cooperatives can help smallholder farmers overcome high input costs, limited bargaining power, and difficulty accessing reliable markets by consolidating produce, improving access to processing facilities, and linking members to larger domestic and export markets.
They can also provide a platform for farmers to access agricultural inputs, extension services, storage and financing.
The government is expanding digital systems to improve farmer identification and the delivery of agricultural services.
Kagwe said 8.9 million farmers had been registered under the Kenya Integrated Agricultural Management Information System (KIAMIS). The database is intended to support targeted distribution of subsidized fertilizer, certified seeds, livestock vaccination, sexed semen and animal identification services.
He said the government had established the Kenya Agricultural and Digital Information Center (KADIC) to coordinate agricultural data and technology, describing it as the sector’s “single source of truth”.
For cooperatives, improved farmer identification and data management could strengthen member records, improve planning for input requirements and facilitate links between producers, service providers and buyers.
However, the benefits will depend on effective implementation and whether registration translates into better access to services that raise productivity and farmer incomes.
The government is also partnering with MPost to introduce universal digital addressing, which is expected to help locate farmers and improve access to extension services, finance, insurance, agricultural inputs and markets.
A separate partnership with Fahari Aviation, a subsidiary of Kenya Airways, will introduce drone technology to support precision application of farm inputs, crop and livestock monitoring, soil analysis, and the detection of pests, diseases and climate-related risks.
Kagwe said collaboration, data sharing, research and technology would shape the future of agriculture, stressing that implementation must deliver measurable gains in productivity and farmer incomes.
From raw commodities to value addition
Kenya’s agricultural export earnings highlight the economic potential of stronger value chains. Kagwe reported that tea earned approximately KSh187 billion in 2025, cut flowers KSh103 billion, fruits and vegetables KSh100 billion, and unroasted coffee KSh52 billion.
The government is promoting aggregation, processing, value addition and market development across coffee, tea, sugar, cotton, dairy and horticulture.
Cooperatives can help small-scale producers in these sectors consolidate volumes, maintain consistent quality and negotiate better terms with buyers and processors.
Kagwe also emphasised reducing post-harvest losses through the distribution of mobile dryers and other equipment, alongside the promotion of the Warehouse Receipt System.
The system allows farmers to store eligible commodities and use warehouse receipts to seek financing, subject to applicable requirements. It can also help them avoid distress sales by providing an alternative to selling produce immediately after harvest.
