Youths Encouraged to Embrace Agribusiness to Tackle the Unemployment Crisis in Kenya

The Unemployment Crisis in Kenya and the Role of Agribusiness

Kenya, like many other countries in Africa, faces a critical unemployment crisis, especially among its youth. According to recent reports, the youth unemployment rate stands at over 20%, which is alarming, given that the youth population accounts for a significant portion of the country’s total population. This situation not only hampers the country’s growth but also contributes to various social and economic issues like poverty, crime, and migration.

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However, amidst these challenges, there lies a massive opportunity in agribusiness. Agriculture, which is a vital part of Kenya’s economy, is increasingly being recognized as a viable sector for young people to explore and thrive in. With the right skills, resources, and mindset, youth can transform agriculture into a highly lucrative business. This article delves into why young people in Kenya are encouraged to embrace agribusiness, how it can help combat unemployment, and the opportunities that exist in this sector.

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The Role of Agriculture in Kenya’s Economy

Agriculture has always been the backbone of Kenya’s economy. Over 75% of Kenya's population relies on agriculture for their livelihoods, and it contributes approximately 33% to the country’s GDP. However, the sector faces challenges such as limited access to modern farming techniques, inadequate infrastructure, climate change, and the predominance of subsistence farming practices.

Despite these obstacles, agriculture remains one of the most promising sectors for job creation. The Kenyan government, alongside various development partners, has been working towards improving the sector's productivity through technology adoption, better access to markets, and the promotion of agribusiness ventures.

Why Agribusiness is the Key to Tackling Youth Unemployment

1. Availability of Opportunities in Agribusiness

Agribusiness is not just about farming; it spans the entire value chain from production to processing, packaging, marketing, and distribution. As such, agribusiness offers numerous opportunities for young people to explore diverse business ventures. Whether it’s starting a small poultry farm, producing organic vegetables, processing dairy products, or even engaging in agricultural technology innovations, the opportunities are endless.

For example, Kenya's tea, coffee, and horticulture sectors are some of the largest contributors to the economy, providing a wide range of business opportunities for young people. There’s also a growing demand for organic and locally grown foods, which young entrepreneurs can tap into by focusing on sustainable and innovative farming practices.

2. The Rise of Agritech in Kenya

Technology is rapidly transforming the agribusiness sector, and Kenya is at the forefront of this transformation. Agritech, which involves the use of technology to improve agricultural practices, is creating a new wave of opportunities for youth. Young entrepreneurs are developing mobile apps, digital platforms, and technologies to assist farmers with weather forecasting, market access, and farm management.

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For instance, platforms like Twiga Foods and M-Farm are connecting farmers directly to markets and providing them with real-time market prices. These innovations allow farmers to get better prices for their produce and streamline the supply chain, providing young people with the tools to make agribusiness more efficient and profitable.

3. Government Support and Initiatives

The Kenyan government has recognized the potential of agribusiness in solving youth unemployment and has put in place policies to support youth participation in the sector. Programs like the Kenya Youth Employment and Opportunities Project (KYEOP), which provides training, mentorship, and financial support for young entrepreneurs, are helping to bridge the gap between unemployed youth and potential employment or business opportunities in agriculture.

Additionally, the government has introduced subsidies on farm inputs and the establishment of agricultural hubs across the country to ensure youth can access resources and markets. These initiatives are designed to make agribusiness more accessible and profitable for young people, reducing the barriers to entry and promoting economic independence.

4. Job Creation Through Agribusiness

Agribusiness is not just about individual farmers; it has the potential to create jobs across multiple sectors. From farmworkers and agronomists to transporters, marketers, and processors, agribusiness creates a ripple effect that leads to the creation of a diverse range of jobs. This sector, therefore, provides both direct and indirect employment opportunities.

Furthermore, as young people start their own agribusiness ventures, they have the chance to employ others, further contributing to the reduction of the unemployment rate. The more youths venture into agribusiness, the more jobs are created, helping to uplift entire communities.

5. Skills Development

One of the key barriers to youth unemployment is the lack of practical skills. Many young people are trained in academic fields that do not always align with the current job market demands. However, agribusiness encourages practical skill development in areas such as farming techniques, marketing, financial management, logistics, and technology.

Young people who take up agribusiness ventures acquire hands-on experience and valuable skills that are transferable to other sectors. This not only helps them become more competitive in the job market but also empowers them to create and manage successful businesses.

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Opportunities for Youth in Agribusiness

1. Agro-processing

Kenya is known for its rich agricultural produce, including tea, coffee, maize, horticultural products, and more. However, much of this produce is exported in raw form, depriving the country of added value and job creation. Agro-processing offers a huge opportunity for youth to establish businesses that add value to agricultural products, such as milling maize flour, producing fruit juices, or making processed snacks.

By venturing into agro-processing, young entrepreneurs can help to increase the shelf life of agricultural products, reduce post-harvest losses, and create jobs in processing plants, packaging, and distribution.

2. Organic Farming

There is a growing demand for organic produce both locally and internationally. As more consumers become health-conscious, organic farming offers a lucrative opportunity for youth to meet this demand. Youth can take advantage of the increasing market for organic fruits, vegetables, and herbs by adopting sustainable farming practices and engaging in organic certification processes.

3. Livestock Farming

Livestock farming, including dairy farming, poultry, and goat farming, offers young people a chance to tap into a growing market. Kenya's demand for meat, milk, and eggs is on the rise, and young people can establish farms that supply this demand. Additionally, value-added products like processed milk, cheese, and eggs present even greater opportunities for entrepreneurial youth.

4. Floriculture and Horticulture

Kenya is a leading exporter of flowers and horticultural products, and this industry offers massive potential for youth. By establishing floriculture farms or engaging in horticultural production, young people can take advantage of the export market, especially to Europe and the Middle East.

Challenges and How to Overcome Them

While the agribusiness sector offers promising opportunities, there are challenges that youth need to overcome to succeed in this field.

1. Access to Finance

One of the biggest challenges young people face is accessing finance to start and grow their agribusinesses. However, there are financial institutions and programs, such as the Youth Fund and the Women Enterprise Fund, which offer loans and grants to young entrepreneurs in agribusiness. Additionally, crowdfunding platforms and agribusiness incubators provide alternative funding options.

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2. Land Access and Ownership

Securing land for farming can be challenging, especially for young people who may not have the financial means to buy land. However, the government has been working towards land reforms to make it easier for youth to lease land or join cooperatives that provide access to larger farming areas.

3. Knowledge and Training

Although there are numerous opportunities, many young people lack the necessary knowledge and training to succeed in agribusiness. To address this, the government and various organizations are providing free or subsidized training programs in agriculture, agribusiness management, and agritech. These programs equip youth with the skills they need to manage and grow their agribusiness ventures.

Conclusion: A Bright Future for Youth in Agribusiness

With a growing population of young people in Kenya, agribusiness offers an untapped avenue for economic empowerment. The sector’s vast potential, coupled with government initiatives and increasing technological advancements, presents a golden opportunity for youth to become successful entrepreneurs and employers. By embracing agribusiness, Kenya’s youth can not only tackle the unemployment crisis but also play a pivotal role in the country’s agricultural transformation.

Frequently Asked Questions (FAQs)

1. What is agribusiness?

Agribusiness refers to the business activities involved in the production, processing, and distribution of agricultural products. It includes various sectors such as farming, food processing, agritech, marketing, and distribution.

2. Why should youth embrace agribusiness?

Agribusiness offers a wide range of opportunities for young people to create jobs, generate income, and contribute to Kenya’s economic development. It is a sector that is not only lucrative but also essential in addressing the youth unemployment crisis in the country.

3. What are the most profitable agribusiness ventures in Kenya?

Some of the most profitable agribusiness ventures in Kenya include poultry farming, dairy farming, floriculture, horticulture, and agro-processing. The demand for organic products and livestock products is also on the rise, making these areas lucrative for young entrepreneurs.

4. How can young people access funding for agribusiness?

There are various funding options available, including government programs such as the Youth Fund and Women Enterprise Fund, commercial banks, micro-finance institutions, and even crowdfunding platforms. Additionally, agribusiness incubators offer mentorship and financial support.

5. What skills do I need to succeed in agribusiness?

To succeed in agribusiness, you need a combination of practical farming skills, business management skills, marketing knowledge, and technological expertise. You can gain these skills through training programs, mentorship, and hands-on experience.

At Richfarm Kenya, we assist in imparting knowledge to Agripreneurs seeking to venture in to Agribusiness. We are also certified propagators of high quality fruit and vegetable seedlings. Any queries or in need of our services? Contact us at 0724698357/0723213602.