Policy and Institutional Changes for Promoting Investment of Remittances in Kenya’s Agricultural Sector - Report

"There are many investment opportunities in Kenya's agricultural sector and other sectors of the economy, especially in rural areas. Taken from a value chain approach, vast opportunities exist in crop and livestock production, in provision of agri-support services such as supply and distribution of farm inputs and provision of extension, storage, and financial services. There are also opportunities in agro-processing for both domestic consumption and export and in agricultural marketing. Although the Government has developed various policy strategies and instituted reforms in the agricultural sector and macro-economic framework, a number of institutional, policy and regulatory gaps still abound and hinder investment in the agricultural sector. These constraints need to be addressed through strong collaboration of all stakeholders, including government, farmers' organizations, civil society, private sector and development partners. Concerning mobilization of remittances for investment in the agricultural sector and rest of the economy, several measures need to be put in place in order to create an enabling environment and channel remittances to productive sectors of Kenya's economy. Notwithstanding the fact that a number of initiatives have been taken by the authorities to mainstream the role of the diaspora in economic, political and social matters, there remains a number of challenges that continue to undermine the contribution of the Kenyan diaspora to the country's economy."