Kari Narp 11 Project Preparation Report 1995

Abstract

Although most sectors of Kenya's economy have developed considerably over the last fewd ecades, the agricultural sector still remains the mainstay of Kenya's economy. Kenya still relies heavily on the agricultural sector- for generation of income, employment, foreign exchange earnings and the provision of raw materials for the industrial sector. The priority of Kenya's agricultural policy is to achieve internal self sufficiency in food supply, to maintain adequate levels of strategic food reserves and to generate a surplus of .crop and livestock produce for export. In 1990 the sector accounted for 28.2% of Gross Domestic Product (GDP). It employs over 70% of the rural workforce and generates about 64% of export earnings. Between 1985 and 1990 agriculture grew at an average rate of 4.1 % per annum but stagnated at 2% in 1992 and 1993 (GoK, 1994). Given major constraints posed by rapid human population increases and scarcity of arable land, accelerated agricultural growth can only be achieved by increasing the productivity of the fixed land base. The growth requires development of production incentives, services and institutions needed to encourage innovation and investment.