The most profitable agribusiness ideas in Kenya- 2022

hand holding growing plant

Is investing in the food and agriculture sector one of your new year’s resolutions in 2022? This article will guide you to choose the most profitable agribusiness ideas that can make you the most money in Kenya.

You will first learn what are the key trends likely to influence the food and agriculture market. Second, you will get a list of the highest money-making agriculture ideas in Kenya and elsewhere in the Africa region. You can invest at any stage of the food value chain as an input supplier, farmer, or trader who buys and sells farm produce. Other promising areas are value-addition or giving support services like transport as later detailed in the post. If you are consistent and creative, you are looking at creating much wealth and jobs for many years to come. The top ideas are;

  • Poultry farming
  • Dairy farming
  • Pig farming
  • Tree farming
  • Urban farming
  • Vegetable farming
  • Herbs & spices farming
  • Plant Raiser
  • Input Supplier
  • Livestock breeder
  • Infrastructure installer
  • Soil Testing
  • Extension Services
  • Transport Business
  • Agri (biz) Consulting
  • Grain milllnng
  • Fruit Juice Business
  • Food Joint
  • Cereals Business
  • Cold storage
  • Groceries Kiosk

Best Agribusiness Ideas in farming

Do you enjoy making your hands dirty by raising crops and animals for profits? Invest in efficient agriculture to raise products with the highest demand. This year you can farm chickens, pigs vegetables, or try your luck in commercial tree farming for fruit trees or the valuable ones like Christmas and timber trees like pine. If you decide on this farming business, consider organic production that minimizes the use of chemical fertilizers and pesticides

Chicken Farming

Make money by raising chicken for meat and eggs. The price of 1 kg of chicken meat is Kes 500. The farm gate price for eggs is Kes 10 per piece or Kes per tray. Other methods of raising more money in chicken farming are selling chicken manure, setting a mini hatchery or breeder to sell one-day-old chicken to farmers in Kenya and Uganda.

Wondering how much money you can make by farming chicken? Explore more from our farming guides on broiler chicken farming for meat, layers chicken farming for eggs, or the improved kienyeji chicken farming for both.

Dairy Farming

Kenya is the second milk consumer in Africa. Each person’s consumption of milk per year (per capita consumption) is 121 liters translating to a total demand of 5.3 billion liters of milk each year. you can tap into this huge market by farming dairy cows, dairy goats, or camels.

Here are our suggested tips on how to succeed in commercial dairy farming.

Pig Farming

Unlike other livestock types, pigs will mature for sale in 6 months compared to beef cattle that mature in 4-7 years. Pig rearing is cheaper since they require cheap food and animal drugs. on the downside, you need to observe strict biosecurity measures on your farm. Besides rearing pigs for slaughter, you can make profits by supplying high-quality piglets and weaners, pig food, etc.

Urban Farming

Hydroponic Farming
Vertical and urban farming methods like the use of hydroponics increases our “land” under cultivation

Urbanization and rural-urban migration across major countries like India, China, and Nigeria are growing fast. You can make long-term profits by tapping into urban farming business ideas like vertical (hydroponics) farming, mushroom farming, etc. Unlike rural farming, urban agriculture requires intensive methods like zero-grazing and the use of tech make it more costly, interestingly, you sell at premium prices making more money.

Access our full guide on urban farming business opportunities.

Tree Farming

Are you an agribusiness investor from the diaspora or wish to invest in the upcountry while living in towns? Commercial tree farming is a low-risk agriculture business for you. Little maintenance is required and can you tend to them effortlessly.

There are two types of tree farming you can try; fruit tree farming and commercial tree farming.

  • Fruit tree farming; Set up an orchard farm and grow the best types of fruits for the local and export markets. The best fruit trees you can grow are Hass avocados, mangos, bananas, etc
  • Commercial tree farming; Best commercial trees to grow are the medicinal, fodder, and timber trees like eucalyptus, pine, cedar, neem trees, etc.
  • Maintain a tree nursery selling fruit and commercial seeds and seedling to farmers.

Vegetable farming

Are you looking for fast-maturing profitable crops? Consider growing the African traditional vegetables, spinach, kales, and cabbages. These have a high demand during the dry months of Dec-March. You may consider irrigating or growing them in greenhouses to ensure quality and high yields. Apart from the above leafy veggies, you can raise potatoes, carrots, and tomatoes as well as onions.

Cereal Business

You can make supernormal profits all year round by supplying dry cereals and legumes at a low investment and effort. You will need to make contact with farmers or traders to buy maize, beans, rice, and other grains at a low price during the harvest period. Invest in good cereal storage to avoid wastage and losses to pests and moisture. Keep them until the market prices have improved. You can sell cereals and flour to schools and flour millers can make you more money.

Learn more about how to start and run a profitable cereals business.

Best Agribusiness ideas in input supplies

There exist a huge business opportunity to provide farmers and herders with quality farming inputs. You will source fertilizers, pesticides and animal feed, and drugs at a profit. The top business ideas in the provision of inputs are;

Plant raiser

Plant raisers are generating profits by growing and selling quality vegetables and fruit trees seedlings for farmers. You will invest in greenhouses and tunnels to keep plants free of pests and diseases. Besides, you will need transport, planting trays, growing materials, and a clean water supply. Examples of successful plant raisers in Kenya are Carol Herbs and Isinya Plant Raisers for vegetables and Kakuzi and Oxfarm for fruit seedlings.

Livestock Breeder

Provide quality genetic materials to poultry and animal producers for a profit. You can have a pig breeding farm, cattle, goat or sheep ranch, or a poultry hatchery. You will sell weaner animals and one-day-old chicks after vaccinating them and monitoring their health. Examples of successful breeders are the Kukuchic

Agrovet shops

An online or a local farm store can make you a millionaire in a short period. You will stock crop and animal inputs from suppliers and sell them to rural and urban farmers. Apart from the conventional stock like fertilizers, seeds, pesticides, and vet products like medicines, vaccines, and animal feed, the following are some profitable products to consider;

  • Irrigation kits like water pumps, drip lines, watering cans
  • Greenhouse materials
  • Hydroponic sets.

Vermicomposting

Making and selling organic fertilizers is a profitable agribusiness idea. The demand for it is high as people choose safe organic products. You can make it by composting animal and crop materials like livestock manure, plants waste, municipal sludge, and industrial wastes from food processing and manufacturing like seed cakes, fish bones, grain husks, vinegar residues, blood, and feathers.

Install farm infrastructure(s)

If you are in building and construction, you can generate income from installing farm infrastructure for farmers and other players in the agriculture and food industry, Examples of areas you can tap are;

Building zero-grazing units, poultry houses, etc, Installing greenhouses, Installing solar electricity and cold rooms as well as drip irrigation lines or boreholes.

Supply Animal feed

Help livestock farmers to mitigate the risks of frequent droughts and floods by growing high-quality animal fodder crops like hay for sale. The most nutritious fodder types include Calliandra, Brachiaria, and Napier grass. Besides, you can use market and factory wastes like maize bran and seed cakes, and sunflower seeds to mill high-quality animal feed. The other option is to use local resources like insects and worms to formulate homemade animal feed for chicken, pigs and dairy cattle.

Best Agribusiness ideas in service provision

Which are the best agriculture business ideas for the youth and women? As they have lower control of land and access to loans, offering services to other agribusinesses in the country. offering services have some of the highest returns and its attractive to young people, unlike farming. Here are the top ideas for you.

Offering professional chemical spraying services is a viable idea for safe agriculture production

Fumigation & Spraying services

Help small-scale farmers by giving them crop protection and animal health or vet services. You can set a fumigation business that will diagnose, treat and control pests and or diseases affecting their crops and animals. Your ideal business would be bringing young people together to offer spraying services or vaccinate animals.

Soil Testing

Make money by offering soil analysis services to crop farmers to identify their soils nutrient content and soil acidity deficient or experiencing a negative soil fertility balance.  It is a service offered best like a package by supplying soil fertility correction materials like fertilizers and agriculture lime.

Lease Machines and Equipment

Mechanisation in Kenya is low at around 20%. You can buy expensive farm equipments and machinery like tractors, water pumps or milk coolers to small scale farmers or traders. They will pay you the rent fee to leasing or hiring their use. Your agriculture ideas in automation of agriculture will centre on financing, and maintenance of the farm machinery.

Transport Business

Set up a large transport business that allows farmers to access markets. You will need to collect and ferry goods or farm inputs from farms to towns and vice versa. To make it more efficient gather clients into farmer groups and trading cooperatives to formalize your business. Invest in a modern fleet that uses cold storage trucks or motorcycles, specialized vehicles like solar milk coolers and electric tricycles to lower your fuel costs

Agri (biz) consulting

Set up a professional consulting firm to help entrepreneurs and existing agribusinesses ro grow and expand. They will outsource your services like record keeping, writing business plans and market research services. Besides these, you can help traders to access export markets and the online markets by assisting them in to set up ecommerce sites, digital marketing and other services like statutory and taxation.

Extension Services

Create jobs and income by helping farmers to adopt and use modern technologies in farming, harvesting, food preservation and processing methods. You will help farmers to adopt the Good agriculture practises (Gaps) to get high yields and earn higher profits.

Agtech

Most of modern and future agribusiness activities will be automated and carried out online. Make money by coding mobile apps, programe information systems or sell agriculture drones. In addition, businesses need to have social media pages, ecommerce websites etc.

Top Agri Business ideas in Value Addition & Food Processing

In Kenya, Post-harvest losses of animal and crop yields are between 30% and 50%. It is a result of low investments in value addition and processing. You can invest in this area to reduce spoilage of fresh fruits, vegetables, milk and meat that happen in farms or during transit. Manufacturing will help in diversification of products and use of by-products. Some of the best investment ideas in reducing food wastage, value addition, food processing and manufacturing are;

Cold Storage Services

Kenya loses between 30-50% of her perishable farm produce like vegetables, milk and meat to spoilage. You can tap into this area by constructing cold storage where clients can rent space to store their fresh produce. To reduce your costs, try solar powered cold rooms and coolers.

Grain Milling

Establish a poshomill business to buy cereals during the harvset period. Store them and and mill them in the shortage peeriod. You will then Package flour and and sell it at a profit.

Milk Processing

This value addition business idea works by aggregating raw milk from small-scale farmers. You will sprocess it into yogurt, maziwa mala, and other value-added dairy products. Market this at a premium price

Fresh fruit juicing

Collect fruits, nutritious vegetables and other healthy herbs and spices to extract healthy juices for sale. Target these to helathy conscious consumers like those suffering from stomach ailments.

Food Joint

Establish a hotel, roadside food joint (kibanda) or restaurant business to sell cooked meat and other food products. You will source raw foods direct from farmers and add their value by cooking. To make more money and expand your market, use a popular food apps like Glovo or Jumia foods and make home deliveries.

Best Agribusiness ideas in food trade

Cereal business

Stock and rebag major cereals, legumes and dry spices for sale . The most profitable cereals business stories stock maize, beans, lentils as some of the fast moving goods. others are dried tubers like cassava and potatoes. To attract most profits, have a social media page since most people rely on them for initial online shopping

Groceries kiosk

Informal road side kiosks (mama mboga kiosks) are one of the best performing small business idea in agribusiness sector. stock the fast moving items like fruits, cooked grains and vegetables for sales. Locate one in a busy estate along a busy feeder road with high traffic.

Produce Broker

What does the future have in store for the farming, food, and beverages industry? Understanding these trends will help you to make the right investment decisions. They include major happenings expected this year as well as the emerging issues in the recent past. The seven trends in agriculture to watch in Kenya are;

  • Political Elections likey to
  • Covid-19 pandemic
  • Sustainability
  • Rising cost of production
  • Food safety
  • Food waste reduction
  • Agritech

Samuel S.K.

S.K is the founder and senior agribusiness development consultant at Agcenture. He can be reached at info@agcenture.com

You may also like...

7 Responses

  1. Daniel says:

    Very educative article.

  2. Muthoni says:

    Informative

  1. May 23, 2020

    […] face challenges in accessing key farm inputs. This has become worse during COVID-19 Pandemic. Logistical challenges have led to shortages and […]

  2. June 16, 2020

    […] is a huge potential for investors to revamp our agricultural sector. This will centre on agribusiness opportunities in crop and animal production, food processing, product differentiation and food quality and safety […]

  3. July 28, 2020

    […] in your area. Offering a solution to any of them is a long-term way to make money and profits. Some challenges that modern farmers face are inadequate markets and investments.  You can consider some of them for investment […]

  4. October 22, 2020

    […] The 11 Most Profitable Agribusiness Ideas in 2020 […]

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.