Kenya secures US$430M in Chinese agricultural investment to boost food production

KENYA –  Kenya has secured agricultural investment deals worth approximately US$430 million from Chinese companies, a move aimed at enhancing food production capacity and attracting further foreign capital into the country’s farming sector. 

The agreements were formalized during the Kenya-China Economic Forum, held on April 23, 2025, in Beijing, and witnessed by President William Ruto.

The forum was organized collaboratively by Kenya’s Ministry of Trade, the Kenya Investment Authority (KenInvest), and the Chinese government, drawing participation from government officials and private sector leaders from both countries.

The first investment agreement, valued at US$30M, was signed with Shandong Jialejia Agriculture and Animal Husbandry Technology. 

Under the deal, the Chinese firm will establish a large-scale poultry facility in Kajiado County. The farm, which will occupy a 40.5-hectare site, is expected to accommodate up to 500,000 laying hens. 

Officials project that the facility will improve domestic egg production, lower reliance on imports, and enhance protein access for Kenyan households.

Speaking at the forum, President Ruto emphasized the strategic importance of strengthening Kenya’s food systems. 

“This partnership will help meet domestic demand while creating employment,” he stated.

A larger agreement, worth US$400M, was signed with Chinese agribusiness conglomerate Zonken Group. 

Through its subsidiaries, Biotech Corporation Ltd and Zonken Environmental Technology Ltd, the company plans to commercially grow and process aloe vera on a 121.4-hectare site in Baringo County. 

The project also includes a 29-hectare estate for the cultivation of apples and grapes, aimed at expanding Kenya’s agricultural export portfolio.

Trade Cabinet Secretary Rebecca Miano described the investments as supportive of Kenya’s broader agenda for value addition and rural industrial growth. 

“This agreement marks a strong step forward in Kenya’s plan to make better use of its agricultural land,” she noted during the event.

The government anticipates that successful implementation of these projects could stimulate further international investment in related sectors such as agroprocessing, logistics, and irrigation infrastructure. 

Kenya’s agroprocessing sector currently contributes about 10% to the national GDP and employs more than 200,000 people. 

Analysts suggest that improvements in technology adoption and financing could enhance the value of Kenya’s farm produce and reduce post-harvest losses.

Infrastructure and irrigation initiatives

Kenya’s logistics sector, encompassing transport and storage services, remains critical to agricultural success. 

While improvements such as the Standard Gauge Railway and upgrades at the Port of Mombasa have been made, challenges including high transportation costs and operational delays persist, affecting the competitiveness of Kenyan produce in regional and international markets.

On irrigation, only a fraction of Kenya’s arable land is currently utilized efficiently. Government figures show that just 747,000 acres are under irrigation. 

To address this, Kenya launched the National Irrigation Sector Investment Plan (NISIP) in March 2025, targeting the irrigation of an additional one million acres over the next decade. 

The plan is supported by an estimated investment of US$4.6B and aims to create over five million jobs while generating annual revenues of approximately US$1.85B.

Meanwhile, the Ministry of Trade has indicated that additional negotiations with Chinese investors are ongoing, particularly in the areas of agro-logistics, agricultural mechanization, and cold chain development, signaling continued momentum in Kenya’s investment drive.