Prime Cabinet Secretary Musalia Mudavadi has announced that the government of Israel plans to invest in large-scale farming in Kenya through structured private-to-private arrangements, with support from both governments.
In a statement on Wednesday, August 28, the Prime CS revealed that during discussions with Israel Agriculture Minister Avi Ditcher, they explored arrangements allowing private sector investors to invest billions in thousands of hectares of land.
This deal would enable the export of produce through private agreements, potentially lasting for 25 years.
“This is a private-private arrangement which will only be guaranteed by the two governments through giving necessary logistics and a conducive environment,” said Mudavadi.
“The biggest catch for Kenyans is the thousands of jobs that would be created by the private sector once the Israeli investors come in.”
Mudavadi said that Kenya was keen on such investments given that it allows the country to utilize through the private sector the millions of lands currently idle noting that part of the produce would go into pushing down the prices of food locally.
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About the Kenya-Israel Deal
Avi Ditcher stated that Israel is interested in entering into partnerships with Kenyan farming entities involved in wheat production.
“The partnerships would be structured along private-to-private arrangements with the support and facilitation of the two governments – Kenya and Israel,” said Ditcher.
He emphasized that Kenya’s agricultural sector presents substantial opportunities, thanks to its vast arable land and growing population.
Furthermore, the agriculture minister highlighted that Israeli farmers and companies have developed advanced technologies that will enable Kenya to enhance food production while using minimal water and soil resources.
“Israel is a leader in precision agriculture that involves the use of drones, sensors, and farm management software to boost farmers’ yields. We want to invest this in Kenya through our investors,” he added.
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In Kenya, government data indicates that the agricultural sector contributes over 33 percent of the gross domestic product, employs 40 percent of the population, and accounts for 65 percent of the country’s export earnings.
According to Mudavadi, Kenya was seeking technologies from Israel that would lower the cost of production and make locally grown agricultural produce competitive in the global market.
“Kenya will also leverage modern technologies to transform from being an importer to a net exporter,” said Mudavadi.
Furthermore, the interest by Israel to invest in Kenya’s agricultural sector comes despite the ongoing war with Ukraine which has affected food production especially wheat in the country.
The Jewish Nation Investing in Farming in Kenya
Israel’s companies have shown increasing interest in investing in Kenya’s agriculture sector.
Last year, Granot International Company, one of the largest producers and packers of avocados, officially launched its operations in Kenya.
Granot operates the largest avocado packing house in Israel and produces one-third of the country’s total avocado yield.
The company planted 55,000 avocado trees on a 400-hectare farm in Ndabibi, Naivasha, with an ultimate target of 300,000 trees.
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