Nairobi: Kenya needs to rethink how to reduce food waste and loss annually, considering the value of per capita food loss and waste is Sh72 billion annually. Figures by the UNEP 2021 Food Waste Index Report also show that Kenyans discard an average of 99 kilograms of food per year, contributing to a total annual waste of 5.2 tonnes for the country. These figures came out Tuesday, when experts in the agriculture space met in Nairobi for a media launch on Financing Agri-food Systems Sustainably (FINAS) 2025 Summit that will be held in May this year.
According to Kenya News Agency, the summit will focus on inclusive food system policy, the youth agenda, funding as well as innovation, data, and technology. Speaking during the media launch of the FINAS Summit, International Fund for Agricultural Development (IFAD) Regional Programme Manager Moses Abukari highlighted that in Sub-Saharan Africa, per capita food loss and waste ranges between 120-170 kg annually, with some estimating a USD 4 billion loss from grain alone. Abukari emphasized the need for deliberate efforts to reinvest the capital lost due to food waste and loss.
Abukari explained that in 2024, the Agriculture and Rural Development Partners Group (ARDPG), a cohort of development partners collaborating with the Kenyan government, reported that Kenya spends an average of USD 1.63 billion annually on food systems. Of the total USD 6.5 billion invested in food systems, 75% was domestic financing and 25% international, showcasing a decrease in Official Development Assistance but an increase in other official flows like investments and philanthropic organizations. This financial trend sets a baseline for planning investments aimed at transforming Kenya’s food system.
Traditional funding models are falling short, Abukari noted, urging the exploration of creative solutions by leveraging technology, fostering public-private partnerships, and adopting sustainable practices to maximize the impact of investments. He stressed the importance of a supportive policy environment, a conducive investment climate, and collaborative partnerships among governments, private sector players, civil society, and international organizations for achieving these goals.
Dr. Charity Mutegi, the summit Director, highlighted the summit’s focus on the state’s role in developing an agricultural finance system and tracking financing flows for food systems in Africa. Meanwhile, Agriculture Principal Secretary Dr. Kipronoh Rono announced the government’s collaboration with GiZ to develop a policy framework for sustainable financing and subsidy management in agriculture.
Freddy Bob-Jones, the Managing Director at ACELI Africa, noted agriculture’s critical role in Kenya’s economy, contributing to a third of all jobs. Despite this, the sector faces significant financial challenges due to high risks and costs associated with lending. Historically, the sector has received only 4-5% of commercial bank capital, a situation that ACELI Africa aims to change by working with 45 financial institutions to unlock USD 293 billion in financing over 3,000 agri-SMEs across Kenya and East Africa.
By addressing regulatory constraints in agri-lending, ACELI Africa seeks to provide access to finance for Agri-SMEs, promoting market access and employment for over 1.5 million smallholder farmers and workers.