Agribusiness News

Kenya targets KSh10.8 billion coast coconut sector as govt plans to triple agricultural production

Man in a white outfit speaks into a microphone at a podium, holding papers with an attentive audience in the background.

The Government has unveiled an ambitious plan to transform Kenya’s Coast region into a major agricultural production and trade hub, targeting five counties for massive increase in crop and livestock production.

Agriculture Cabinet Secretary Sen. Mutahi Kagwe said Lamu, Tana River, Kwale, Kilifi and Taita Taveta have enormous agricultural potential that remains largely untapped and could generate billions of shillings in new opportunities for farmers, processors and investors.

Kagwe said production of key commodities including coconut, cashew nuts, cotton, cassava, milk and meat could triple or even quadruple if the region receives increased investment in irrigation, technology, infrastructure, value addition and farmer support.

“The Coast region has enormous potential which remains largely untapped. We can triple and even quadruple the production of commodities such as cashew nuts, coconut, cassava, cotton, milk and meat,” Kagwe said.

The CS was speaking at the ASK Mombasa International Show, where he outlined the Government’s Coast Region Economic Revival Strategy, which seeks to reposition agriculture as one of the major drivers of economic growth in the region.

At the centre of the strategy is a “From Farm to Port” approach designed to connect farmers and producers with processing facilities, transport infrastructure and domestic and international markets.

Under the plan, Kwale, Kilifi, Taita Taveta and Tana River will focus largely on agricultural production and local value addition, while Mombasa and Lamu will provide critical logistics and supply chain infrastructure linking producers to markets across Kenya, East Africa and the global market.

The strategy is expected to take advantage of the region’s proximity to the Indian Ocean and the Port of Mombasa, which could provide farmers and agro-processors with improved access to export markets.

Kagwe said the Government could not achieve the transformation alone, calling for stronger cooperation between national and county governments, private investors, development partners, farmers and community organisations.

“Agriculture is a devolved function, and therefore county governments must be at the centre of this transformation,” he said.

 

Man in white dancing among performers wearing colorful traditional outfits and feathered headpieces at a cultural celebration, smiling broadly.
Agriculture CS Mutahi Kagwe at the Mombasa International Show 2026

Coconut industry in focus

The coconut value chain is among the sectors expected to benefit significantly from the renewed Government push.

More than 100,000 farming households along the Coast depend on coconut production, while more than 100,000 tonnes of coconut nuts valued at approximately KSh10.8 billion were processed in 2025.

Kagwe said the Government wants to move the industry beyond the sale and processing of raw coconuts and promote the production of higher-value products.

“We must move beyond raw production and embrace higher-value products such as virgin coconut oil, coconut water, coconut flour, coconut cream and coconut milk,” he said.

The shift towards value addition is expected to create opportunities for farmers, processors, manufacturers and investors while allowing producers to earn more from their harvests.

The Government is also seeking to revive the Coast’s cashew nut industry through the distribution of subsidised seedlings, expansion of production acreage, improved productivity and increased value addition.

The interventions are intended to increase farmer incomes while reducing reliance on the sale of raw cashew nuts.

Cotton production doubles

Cotton is another value chain being targeted under the agricultural revival plan.

The area under cotton production in the region has increased from 8,000 hectares in 2022 to 18,000 hectares in 2026.

Production has also risen from 6,779 bales weighing 105kg each in 2022 to about 15,000 bales in 2026.

The Government has supported the subsector through the promotion of Bt cotton, improved access to seed and enhanced coordination among players along the value chain.

Kagwe said technology would be critical to sustaining the growth and ensuring farmers benefit from modern agricultural practices.

The Kenya Agricultural and Digital Information Centre (KADIC) is being positioned as a one-stop centre for agricultural digitalisation and innovation.

The Government expects public-private partnerships to accelerate the adoption of mechanisation, drone technology, animal identification and traceability, artificial intelligence and other digital solutions.

Such technologies are expected to improve productivity, reduce production costs and strengthen linkages between farmers, processors and markets.

Group of men at a vegetable garden demonstration; a man in white tunic and hat points to a plant while a presenter in black explains.
Agriculture CS Mutahi Kagwe with stakeholders at the Mombasa International show 2026

Kenya, Tanzania seek stronger farm trade

The Coast agricultural push comes amid growing calls for deeper agricultural cooperation within the East African Community.

Tanzania’s Deputy Minister for Agriculture, Hon. David Silinde, said Kenya and Tanzania should strengthen agricultural trade and investment, citing the longstanding economic and social ties between the two countries.

Silinde said Tanzania has investment opportunities in commercial agriculture, irrigation, seed production and multiplication, agro-processing and value addition.

He urged Kenyan investors to explore opportunities in Tanzania while encouraging the two countries to move beyond traditional commodity trade.

“Governments cannot transform agriculture on their own,” Silinde said, calling for greater private-sector participation in investment, technology and innovation.

He said governments should concentrate on creating an enabling environment that allows businesses and farmers to invest and expand agricultural activities.

Feed shortage threatens milk production

The Government’s agricultural interventions come at a time when climate-related disruptions continue to put pressure on food and livestock production.

In the dairy sector, inadequate rainfall has affected pasture and animal feed availability in some major milk-producing areas, contributing to declining milk supplies.

Kagwe said the Government would operationalise duty-free importation of yellow maize for animal feed production as part of efforts to address shortages and reduce feed costs.

“Restoring feed availability is critical to rebuilding milk production,” he said.

The CS also urged dairy cooperatives to ensure that improved milk prices reach farmers, particularly as competition from brokers offering higher prices continues to affect milk deliveries to cooperatives.

The Government is also considering importing milk powder to cushion consumers against possible shortages.

However, Kagwe cautioned that large-scale imports must be carefully timed, taking into account weather forecasts and the possibility of domestic milk production recovering once rains return.

The Coast agricultural strategy marks a significant shift in the region’s economic ambitions, with the Government seeking to position the area as more than a tourism destination.

Its vast agricultural potential, livestock resources, access to the Indian Ocean, port infrastructure and proximity to regional markets give the Coast a strategic advantage in agricultural trade.

If investments in irrigation, technology, infrastructure, processing and farmer support are successfully coordinated, the region could emerge as a major source of food, jobs, manufactured agricultural products and export earnings.

For farmers, the Government’s “From Farm to Port” strategy could provide new opportunities to move from subsistence and raw commodity production into commercial agriculture and value-added enterprises.

The ultimate goal, Kagwe said, is to ensure that increased agricultural production translates into higher farmer incomes, stronger agro-processing industries and a greater contribution by the Coast region to Kenya’s economy.

 

Moureen Koech
Author: Moureen Koech

Moureen Koech is a passionate Digital Journalist, an adept Agribusiness Writer with a keen eye for news and an impactful story-teller,whose stories provide key value to Agripreneurs and stakeholders in the Agricultural sector

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Moureen Koech
Moureen Koech is a passionate Digital Journalist, an adept Agribusiness Writer with a keen eye for news and an impactful story-teller,whose stories provide key value to Agripreneurs and stakeholders in the Agricultural sector

Moureen Koech

About Author

Moureen Koech is a passionate Digital Journalist, an adept Agribusiness Writer with a keen eye for news and an impactful story-teller,whose stories provide key value to Agripreneurs and stakeholders in the Agricultural sector

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