10 Ways to Start Agribusiness in Kenya Without Buying Land

Agribusiness in Kenya is now one of the most profitable investment opportunities, especially for the enterprising young people. However, one of the greatest challenges facing young, aspiring farmers is access to arable land, which is often expensive and out of reach for many young entrepreneurs. 

Young Farmer Leasing Land in Narok for Onion Farming

Fortunately, owning land is not the only way to get into and thrive in the agribiz sector. Here are some practical solutions for starting an agribusiness in Kenya without buying land:

1. Long-term Land Leasing

The most practical and common alternative to buying farming land is leasing. Many landowners are willing to lease their land on a long-term basis for agricultural purposes at an affordable rate. Land lease costs as low as Ksh10,000 per year per acre in some fertile remote areas. This option has three main advantages: 

1. Flexible, annual payment program: Let us say you have agreed with the land owner to lease the land for 10 years at the rate of Ksh10,000 per acre per year. You will not need the entire Ksh100,000 at the start of your project. You pay annually for the next 10 years. 
2. Focus your capital on the actual farming: This arrangement allows you to put all your capital into land preparation, buying farm inputs, and footing the cost of operations, rather than on purchasing land. 
3. Land lease fee eventually pays for itself: Once you start harvesting, the proceeds of your project give you the cash to pay subsequent lease fees. 

I would only advise you to ensure that you have a clear and legally binding lease agreement, signed before a lawyer to avoid disputes.

2. Adopting Urban Farming Technology

You actually do not have to move to a rural area in order to become an agri-preneur: urban farming technologies offer a great alternative. Techniques such as container gardening, vertical farming, and hydroponics enable you to grow crops in small urban spaces but produce enough to make a decent income. You can use rooftops, balconies, or backyards. The secret is to cultivate high-value crops like herbs, vegetables, or berries.

Hydroponic farming technology

3. Partnering with Landowners

I call this the win-win farming partnership. It involves landowners who have very good land for farming, do not have the capital to do their projects, and do not wish to lease out their land. 

In such agreements, you come in as an investor, providing the cash capital. The land owner provides the land and probably water and irrigation facilities. The investor (you) and the land owner then agree on how to share the responsibilities of managing the project. You also agree on how to share the profits. This win-win arrangement benefits both parties and eliminates the need for upfront capital to buy land.

4. Greenhouse Farming

We take on this option because it is ideal for maximizing productivity on small parcels of land. We are ideally talking about urban plots that would ordinarily produce very low yields under open-field farming. 

In almost all towns, you will find idle plots that you can rent and construct greenhouses to grow high-value crops like tomatoes, capsicums, and cucumbers. Greenhouses significantly improve yields and reduce losses brought about by pests, diseases, and  hazardous weather.

Simple greenhouse farming

5. Contract Farming

This is most probably the most enticing arrangement for Kenyan youth. Contract farming involves working with established companies that provide you with the resources to grow specific crops or rear animals. These companies often supply seeds, inputs, and technical support and guarantee a market for your produce. With all that provided, you can then invest the little capital you have in leasing land and managing your project. 

6. Community Farming

This is an interesting idea I learned from a friend. This is what the guy does: he focuses his efforts on providing agronomy and marketing services for a specific high-value crop. He then goes to a rural agricultural area where farmers have small portions of land. He introduces the high-value crop, offers constant free agronomy,  and assures the farmers of ready market. He could go a step further and provide the seeds or seedlings. 

In this way, the farmers form a farming community, each doing their own project but producing the same crop hence ensuring consistent production. He markets the produce as his own, pays the farmers their dues, and keeps a decent amount of profit. 

7. Value Addition and Agro-processing

Agribusiness is not only about actual farming: investing in agro-processing and value addition is the smartest way of getting your share of the agribusiness millions. All you need to do is source raw materials from the ever-ready Kenyan farmers and create products like dried fruits, juices, or packaged spices. This approach eliminates the need to invest in buying expensive land while tapping into the growing demand for processed agricultural products.

8. Becoming a Farm Service Provider

Instead of putting huge amounts of money in buying land, you can start a small service business serving farmers. This can include farm machinery leasing, agro-consultancy, pest control services, or supplying inputs like seeds and fertilizers.  By solving farmers’ problems, you can build a thriving business without owning land.

9. Aquaponics and Fish Farming

Aquaponics combines aquaculture (fish farming) with hydroponics (soilless crop farming). It is highly space-efficient and sustainable, making it ideal for individuals without access to traditional farmland. Small-scale fish farming in tanks or ponds is also a viable option, requiring minimal space.

10. Becoming a Digital Agribusiness Guru

There is no industry today that cannot benefit from the power of technology. While many people think of farming as a backward way of making money, taking a digital approach in agribusiness can set you apart and give you a high earning opportunity.  

Leveraging technology to create a digital agribusiness involves creative engagement; you can create educational digitally accessible content for farmers, start an e-commerce platform for selling farm produce,  or build an app connecting farmers to buyers. There is just a whole world of things you can do relating to this. 

In Conclusion

Land is not a limitation for anyone wishing to make a living out of agribusiness in Kenya.  Consider the options I have given you and you can turn your passion for agriculture into a successful venture. Remember, agribusiness is not a walk in the park; your innovation, resourcefulness, and determination are key to achieving success in this field.

At Richfarm Kenya, we are committed to supporting agripreneurs of all walks of life with practical advice, quality seedlings, and insights into modern farming techniques. You can reach us on our socials or Whatsapp 0724698357.