Council of Governors Chair Ahmed Abdullahi/FILE
Agriculture and livestock remained the backbone of Kenya’s economy in the last financial year, with the sector’s contribution to GDP rising and counties reporting record output in horticulture, coffee, milk and cotton, Council of Governors Chair Ahmed Abdullahi has said.
Delivering the State of Devolution Address on behalf of county governments, Abdullahi said devolved investments were behind the growth even as some food crops continued to face structural challenges.
“In the year under review, agriculture remained the backbone of Kenya's economy, reinforcing its central role in food security, employment, rural livelihoods, and economic transformation,” Abdullahi said.
According to the Economic Survey 2026, the sector’s contribution to Gross Domestic Product increased from 22.4 per cent in 2024 to 23.2 per cent in 2025.
The value of agricultural output also rose from Sh3.64 trillion to Sh4.07 trillion.
Abdullahi noted that agriculture is a fully devolved function and that “consistent investments by every County” helped drive growth across several value chains.
Horticulture retained its position as Kenya’s leading agricultural export, generating Sh 216.5 billion in earnings, up from Sh203.6 billion in 2024.
Coffee recorded remarkable growth, with export earnings increasing from Sh38.4 billion to Sh52.1 billion, attributed to favourable global prices.
Tea remained one of Kenya’s largest foreign exchange earners, contributing Sh187.1 billion despite lower production volumes.
On food security, Abdullahi said production improved in some staples. Paddy rice output increased from 169,300 tonnes to 180,100 tonnes, while maize deliveries rose slightly to 178,000 tonnes.
Cotton production also rebounded significantly, increasing from 6,200 tonnes to 8,800 tonnes, a boost he said was contributing to the revival of the textile and apparel industry
However, other crops declined. Wheat deliveries fell from 294,300 tonnes to 240,600 tonnes, while sugarcane deliveries dropped sharply from 9.4 million tonnes to 7.1 million tonnes
“Highlighting continued dependence on imports and the need for greater investment in productivity, processing infrastructure and farmer support,” Abdullahi said.
The livestock sector also posted strong gains. Milk production exceeded one billion litres, rising from 909 million litres in 2024 to about 1.01 billion litres in 2025.
Abdullahi attributed the growth to improved rainfall that enhanced pasture and water availability, making livestock “a major source of rural income and nutrition.”
He added that County Governments “continued to play a central role” in supporting farmers and pastoralists through extension services, input subsidies, and market linkages.
The address comes at a time when counties are pushing for more funding to mechanise agriculture, build cold storage facilities, and expand irrigation to cushion the sector against climate shocks and market volatility.
Abdullahi said the devolved system has allowed tailored interventions across counties, from dairy cooperatives in the Rift Valley to horticulture hubs in Central and Eastern regions.
With agriculture now accounting for nearly a quarter of GDP, the CoG Chair urged the National Government and development partners to work with counties to address gaps in processing and value addition to maximise earnings for farmers.
