Why Kenya must stop exporting wealth in raw form
Kenya's next economic challenge should not simply be to export more, but to capture more value from what it already produces.
Kenya has prospered in recent decades by producing key commodities such as tea, coffee, leather and horticultural products. However, the country often stops at the first stage of the value chain, exporting raw materials while leaving processing, branding and manufacturing to other nations. This limits the potential for Kenya to capture more value from its own production.
Agriculture, in particular, offers a significant opportunity for Kenya to increase its GDP contribution and create employment. Currently, agriculture accounts for around 17% of the country's GDP, but this could rise to 40-45% if more processing and value addition occurs locally. This would also generate around 7 million jobs in the sector.
Tea is a prime example of Kenya's untapped potential. In 2025, the country earned Sh215.21 billion from tea exports, up from Sh154.09 billion in 2022. However, 99% of these exports are sold in bulk form, preventing the full benefits from reaching the local economy. To address this, the government aims to increase the share of value-added tea exports to 50% by 2027, supported by measures such as packaging, branding, blending and quality certification.
Other sectors like coffee and leather also present opportunities for Kenya to add value. Kenyan coffee, known for its quality, could command premium prices if processed into specialty coffee products, ready-to-drink blends and other consumer goods. The leather industry, another significant contributor to Kenya's economy, could transform hides into finished products like shoes and handbags, creating additional economic value.
Written by urgent.news from Capital FM Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
