By Erestinah Jane, July 1, 2026
Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe has urged African countries to end their dependence on exporting raw agricultural commodities, saying the practice continues to deprive the continent of thousands of manufacturing jobs and billions of shillings in potential economic value.
Speaking at an agricultural forum, Kagwe said African economies have for decades remained trapped in a cycle where they export unprocessed commodities at relatively low prices before importing finished products at significantly higher costs.
According to the Cabinet Secretary, the model benefits foreign industries while limiting Africa’s industrial growth and employment opportunities.
“When we export raw produce, we are also exporting jobs,” Kagwe said, arguing that the most profitable stages of the agricultural value chain are taking place outside the continent.
He explained that once raw commodities leave Africa, they undergo processing, packaging, branding, quality enhancement, marketing and distribution in overseas factories, creating employment and wealth in importing countries instead of within African economies.
Kagwe noted that industries involved in agro-processing require technicians, engineers, food scientists, machine operators, logistics specialists, marketers and packaging experts—jobs that could otherwise be created locally if countries invested in domestic manufacturing.
He warned that continued dependence on raw commodity exports leaves African economies vulnerable to fluctuations in global commodity prices while limiting opportunities for industrial expansion and economic diversification.
The Cabinet Secretary said value addition should become a central pillar of Africa’s economic transformation strategy, particularly at a time when youth unemployment remains one of the continent’s biggest challenges.
He called on governments to implement policies that encourage local processing by making financing more accessible to manufacturers.
According to Kagwe, agro-processing industries require affordable long-term credit, modern production equipment and supportive tax policies if they are to compete effectively with imported products.
He also advocated for increased investment in industrial infrastructure, reliable energy supply and transport networks to lower production costs for local manufacturers.
Kagwe’s remarks reflect Kenya’s broader policy shift towards promoting domestic value addition before agricultural products are exported.
In recent years, the government has introduced measures aimed at discouraging the export of raw materials by imposing export restrictions, levies and outright bans on selected commodities.
Among the products affected are raw in-shell macadamia nuts, scrap metal and raw hides, with the objective of ensuring that local industries have sufficient raw materials to support manufacturing.
The government argues that such policies encourage investors to establish processing plants within Kenya, creating employment while increasing the value of exports.
Kagwe also highlighted ongoing investments in industrial infrastructure designed to support value addition across the country.
These include the establishment of County Aggregation and Industrial Parks (CAIPs), which are intended to provide farmers and processors with modern facilities for sorting, grading, processing, packaging and storing agricultural produce closer to production areas.
The government is also expanding Export Processing Zones (EPZs) to attract investment in manufacturing and agro-processing, particularly for products such as tea, coffee, fruits, vegetables and other horticultural exports.
According to the Cabinet Secretary, increasing local processing capacity would enable Kenya and other African countries to earn more from their agricultural sectors while creating sustainable employment opportunities for young people.
He said moving beyond raw commodity exports would strengthen local industries, reduce dependence on imported finished products and improve the continent’s competitiveness in global markets.
Kagwe challenged African governments to work together in developing policies that promote regional manufacturing and intra-African trade, arguing that the continent possesses abundant agricultural resources capable of supporting thriving processing industries if properly harnessed.
He said greater investment in value addition would not only boost farmers’ incomes but also contribute to broader economic growth by retaining wealth, technology and employment opportunities within Africa.
