2013年-世界发展银行全球_Agribusiness_Indicators___Kenya_102页_3mb

Summary of Kenya Agribusiness Indicators Report (January 2013)

Core Content

This report, prepared by the World Bank, evaluates the agribusiness indicators and success factors in Kenya's agricultural sector, focusing on access to production inputs, the enabling environment for agribusiness, and the role of public and trade policies. The findings aim to support policy reforms and improvements in agribusiness development across Sub-Saharan Africa.

Main Success Factors and Indicators

1. Access to Critical Factors of Production

• Certified Seed:

  • Most farmers obtain seed from the informal sector, except for maize and rice.
  • About 40% of maize seed comes from formal public seed companies, and 20% from private companies.
  • 90% of hybrid maize seed is sourced from the Kenya Seed Company.
  • Kenya has advanced seed laws aligned with ISTA and OECD certification schemes.
  • 67.2% of maize area is planted with certified seed (2000–2010).
  • 54.2% of wheat area is planted with certified seed.
  • 13.8% of certified seed sales in Kenya are from imported maize seed (2005–2010), rising to 15% in 2010 alone.
  • The seed to grain price ratio is 5.1, indicating profitability for certified seed.
  • The ease of private sector participation in the seed market is rated 2.5 on a 0–5 scale.

• Fertilizer Use:

  • Fertilizer application rates have increased significantly over the past decade due to market liberalization.
  • In Western Kenya, application rates are more than double those of the last decade.
  • 46 kg/ha of nutrient or 100 kg/ha of chemical fertilizer is the average rate.
  • 81 kg/ha of nutrient or 177 kg/ha of chemical fertilizer is used on maize fields.
  • 35% of farmers apply fertilizer at recommended rates (2010).
  • Fertilizer subsidy covers 40% of retail cost, provided to selected poor farmers.
  • Fertilizer importation is largely handled by the private sector (about 80% of imports).
  • Value-cost ratio (value of output to cost of fertilizer) is 2.14 (all main crops, 1997–2010).
  • Nutrient to output price ratio (Pn/Po):
    • Maize: 7.96
    • Wheat: 8.77
  • Tariffs and taxes on fertilizer are 0% (zero-rated), but there is an Import Declaration Fee of 2.25% of CIF price.

• Agricultural Mechanization (Tractors):

  • 14,400 tractors are in use in Kenya, with more than 70% being medium-sized (80–120 HP).
  • 26.9 tractors per 100 km² and 3 tractors per 1,000 hectares are the estimated tractor densities.
  • Average tractor HP is 1,460,160, with 0.28 HP per hectare of arable land.
  • Tractor rental costs:
    • Parastatals (ADC): Ksh 2,500 (US$31.25) per ha for plowing.
    • Private sector: Ksh 4,000 (US$50.00) per ha for plowing.
    • Disc harrowing:
      • Parastatals (ADC): Ksh 1,200 (US$15.00) per ha.
      • Private sector: Ksh 2,000 (US$31.25) per ha.
  • Tractor importation is duty-free, but spare parts are taxed at 16% (duties and VAT).
  • The average useful life of tractors is 11 years, with an estimated 15,000–20,000 engine hours.
  • The ease of private sector participation in the tractor market is rated 5.0 on a 0–5 scale.
  • Government does not import tractors, and the private sector dominates the market.

2. Enabling Environment: Access to Financial Services and Transportation

• Access to Finance:

  • Agricultural Finance Cooperation (AFC) is the main formal institution providing agricultural credit.
  • AFC has 48 branches, with 41 in rural areas.
  • Despite a legal mandate for 17–20% of commercial banks' loan portfolios to be allocated to agriculture, only 5.3% (2010) and 5.6% (2011) were directed to the sector.
  • Average interest rate for private sector loans is 14%, but agricultural loans attract 20–25%.
  • Nonperforming loans (NPLs) in the agricultural sector are higher than in other sectors.
  • Warehouse receipt financing is not yet established in Kenya, despite a large network of warehouses.
  • Credit information index is 5.1, indicating a relatively good credit infrastructure.

• Transportation:

  • 96% of passenger and goods traffic is via road networks, with 4% by rail, air, sea, or lake.
  • 70% of Kenya's classified roads are in good/fair condition, while 30% require rehabilitation.
  • Only 5% of rural routes are in good condition.
  • Transport costs account for 35% of total logistics costs along the Northern Corridor.
  • Logistics Performance Index (LPI) for Kenya is 2.16, which is below the SSA average (2.29) and well below South Africa (3.67).
  • High taxes and tariffs on new trucks deter imports.
  • Weighbridges and police roadblocks are cited as major inefficiencies in the transport system.

3. Public and Trade Policies and Civil Society

• The government's budget allocation to agriculture is 4.3%, below the 10% recommended by the CAADP framework.
• Policy reforms are delayed, which hinders effective private sector development.
• Civil society and advocacy groups have become more influential in recent years, but they need to be more cohesive and dynamic to drive meaningful policy changes.
• Public sector involvement in agribusiness is minimal, particularly in tractor imports and seed distribution.

Key Findings and Recommendations

• Seed:

  • Hybrid and improved seed usage is high, especially in maize.
  • The private sector plays a crucial role in seed distribution, though the formal sector dominates in some crops.
  • Legal and regulatory frameworks need to be strengthened to support warehouse receipt financing and commodity exchanges.

• Fertilizer:

  • Private sector is the main importer and distributor of fertilizers.
  • Government intervention in fertilizer markets risks distorting the private sector and undermining agro-dealers.
  • Fertilizer application rates are among the highest in Sub-Saharan Africa, but underfinancing remains a concern.

• Mechanization:

  • Tractor use is widespread in high-potential agricultural areas, such as the Rift Valley and Western Lowlands.
  • Small-scale farmers rely heavily on tractors for land preparation, despite the high cost of hiring them.
  • Private sector dominance in tractor markets is a positive trend, but spare parts taxation limits tractor lifespan and availability.

• Finance and Logistics:

  • Financial inclusion in Kenya is relatively high compared to other SSA countries.
  • LPI scores indicate the need for reforms in logistics and transport efficiency to reduce costs and improve competitiveness.

Conclusion

The report concludes that while Kenya has made progress in agribusiness development, especially in seed and fertilizer use, mechanization, and financial services, there are still significant gaps in policy implementation, infrastructure development, and market efficiency. The government needs to increase budget allocation to agriculture and reform policies to support the private sector and civil society in driving sustainable agribusiness growth.