THE LAUNCH OF THE AGRICULTURAL SECTOR DEVELOPMENT STRATEGY (ASDS) AND SIGNING OF THE KENYA CAADP COMPACT
23 - 24 July 2010
Nairobi

PRE-LAUNCH FORUM

A pre-launch forum was held on 23 July at the Kenyatta International Conference Centre, the venue of the signing and of the CAADP Compact and launch of the strategy.
The forum offered an information-sharing platform between the CAADP Lead Pillar institutions and stakeholders.

Mr Kenneth Lusaka, Permanent Secretary, Ministry of Livestock Development, officially opened the pre-launch forum whose objectives were to take stock of what the Government has done and provide input to the Thematic Working Group action plans. The expected outcomes were a list of identified gaps, and recommendations to review the plans. More than 300 participants - farmer representatives, policy makers, officials from each of the 10 sector ministries, development partners, entrepreneurs, and interested members of the public - attended the pre-launch forum.

The forum had 3 sessions. Session 1 had 3 detailed presentations on the Comprehensive Africa Agriculture Development Programme, its implementation in Africa and in the COMESA region, and how the Kenya Agricultural Sector Development Strategy links to CAADP. A plenary session followed where each presenter responded to questions from the floor.

PRESENTATIONS WERE MADE BY: - Mr. Komla Bissi, Dr. Sam Kanyarukiga and Dr. Romano Kiome, PS, Ministry of Agriculture

Session 2 was devoted to detailed presentations on the 4 CAADP pillars that was followed by a question-and-answer session.

Pillar 1 | Pillar 2 | Pillar 3 | Pillar 4 |

Session 3 consisted of breakout sessions where participants joined any of the 4 groups corresponding to the 4 CAADP pillars. The ASDS identifies 6 thematic working areas that synchronize with the 4 pillars. Thematic group leaders presented the priorities in each thematic area and each group identified gaps in the action plans.

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Message from the Agricultural Sector Ministers

The Agricultural Sector Development Strategy (ASDS) is the overall national policy document for the sector ministries and all stakeholders in Kenya. The document outlines the characteristics, challenges, opportunities, vision, mission, strategic thrusts and the various interventions that the ministries will undertake to propel the sector to the future. In composing this strategy, we have defined the problems in the agricultural sector, explored the possible causes of the problems and proposed possible solutions. Recognizing that we cannot solve all the problems, we have selected the best solutions and shall implement them in a phased manner.

As a revision of the Strategy for Revitalizing Agriculture (SRA), ASDS has incorporated not only the successes but also the lessons learned from SRA to provide the framework for stimulating, guiding and directing progressive agricultural growth and development in the next 10 years. The document proposes realistic policies and institutional changes that we believe are necessary in contemporary Kenya for creating a vibrant and productive agricultural sector. We expect the strategy to encourage and enhance positive participation among the civil society, individual farmers, pastoralists, fisherfolk, farmer organizations, cooperatives and the private sector. The interventions and reforms proposed in this strategy are based on the need to achieve transparency, accountability, efficiency and effectiveness in the performance of duties in the agricultural sector.

This strategy can only succeed with the total commitment and determination of all stakeholders. We must harness the will and the determination of farmers, processors, the public and private sectors, and non-State actors to realize the agricultural potential that this country holds. It is our most sincere hope and expectation that this strategy will not only be a milestone and a guide for the staff of the sector ministries but will also be a landmark, and will provide direction to all of us who are involved in agriculture as a vital industry. We are convinced that if successfully implemented, this strategy will return the sector to a growth path to achieve our vision of 'a food-secure and prosperous nation.

Message from the Sector Permanent Secretaries

The agricultural sector is the key player in the national economy contributing directly, over a quarter of the country's earnings from within and about three in every four shillings earned through exports. In addition, agriculture provides the livelihood of over 80 per cent of the Kenyan population and their food security needs. The sector therefore is not only the driver of Kenya's economy but is also the means of livelihood for the majority of the Kenyan peoples.
It is against this background that the agricultural sector ministries launched the Strategy for Revitalizing Agriculture (SRA) in 2004 as a sector-wide policy to revive the sector growth which had declined to an all-time low of negative 2 per cent in 2000. The SRA was a follow up and response to the Economic Recovery Strategy for Wealth and Employment Creation (ERS).Under this strategy, the agricultural sector began to recover and markedly improved from negative growth in 2002 to reach a positive of over 5 per cent by 2007.

Although much has been achieved in the last 5 years, food security, poverty reduction, transformation of agriculture from subsistence to commercial farming and agribusiness, markets, efficient use of inputs and agricultural credit still remain a challenge. With the expiring of the ERS, the launching of Vision 2030, the achievement of most targets of the SRA and the formation of a new government in 2008, it became imperative to capture these new developments and revise the SRA.
A new strategy was, therefore, required to position the agricultural sector as a key driver for delivering the 10 per cent annual economic growth rate envisaged under the economic pillar of Vision 2030. The strategy would further be required to provide a guide for the public and private sector's effort in addressing major development challenges facing the agricultural sector. In addition, the new strategy has taken into account the ongoing institutional and policy reforms, and lessons arising frol11 the implementation of the ERS and the SRA. Furthermore, the new strategy has also taken into account the Comprehensive African Agricultural Development Programme (CAADP) that recognizes agriculture's contribution to accelerated economic growth in African countries and the MDGs in which the United Nations member countries pledged to reduce extreme hunger and poverty by 2015.

Message from Development Partners

We, the development partners of the Kenyan Government in agriculture, wish to congratulate the ministries and other stakeholders of the agricultural sector for developing the Agricultural Sector Development Strategy (ASDS). We are encouraged to note that the new strategy is being launched simultaneously with Kenya's country compact of the Comprehensive African Agriculture Development Programme (CAADP). Both documents are milestones of the Kenya Government's renewed emphasis to promote the modernization of agriculture. In addition, both the ASDS and the CAADP Compact are all relevant to Kenya's Vision 2030.

We acknowledge the great effort by the various ministries and the support of the Agricultural Sector Coordination Unit (ASCU) to develop the ASDS. We believe that effective and efficient coordination of the interventions between the multiple ministries, semi-autonomous government agencies, research institutes, private sector and civil society is one of the most crucial aspects to make best use of resources in the agricultural sector. This is an important milestone towards implementation of the Kenya Joint Assistance Strategy (KJAS), Paris Agenda and Accra Agenda for Action on Aid Effectiveness in the agricultural sector. We are encouraged to note that the ASDS is now the rallying call for the ten ministries related to the agricultural development to shift from partly competing ministries towards greater cooperation and creation of synergies.
Also, we appreciate the Kenya Government's leadership and commitment in translating the Comprehensive African Agriculture Development Programme (CAADP) into a national process. CAADP's agenda reflects a fundamental shift in the way Africa's leadership looks at agriculture and its potential contribution to ending poverty, hunger, and malnutrition. The program - fully owned and led by African governments - is at the heart of efforts to achieve growth and national development in line with the Millennium Development Goals (MDGs). By taking this bold step, Kenya affiliates herself with many other African countries that promote growth and economic development in order to eliminate hunger and reduce poverty through agriculture.

Message from the Private Sector

The agro-based private sector comprises both profit and not-for-profit (civil society) non-state actors which could be broadly categorized into farmer or producer organizations. The Kenya Private Sector Alliance (KEPSA) notes with pleasure that through Kenya National Federation of Agricultural Producers (KENFAP), farmers are very ably represented as important members of the private sector.

KEPSA is a coalition of private sector institutions such as business associations, federations and professional bodies. KEPSA engages with the government, in structured consultations and policy dialogue towards improving the business environment, accelerating public sector institutional transformation, promoting private sector cultural change and facilitating growth through expansion of trade.

KEPSA also engages the government on commercialization in agriculture, productivity improvement and competitiveness of enterprises, supporting entrepreneurship and development of micro and small enterprises in line with the national development agenda.

The private sector wishes to congratulate the government of Kenya and in particular the agriculture sector ministries for the development of the Agricultural Sector Development Strategy (ASDS). We acknowledge that the ASDS is in line with the national economic blueprint (Kenya Vision 2030) and takes into account other regional and international initiatives such as the Comprehensive Africa Agriculture Development Programme (CAADP) and the MDGs in which the member countries of the United Nations pledged to reduce extreme hunger and poverty by 2015.

We also congratulate the government for translating the CAADP and, subsequently, the signing of the Kenya CMDP Compact joining other countries in eastern Africa like Rwanda, Uganda and Tanzania, among others. The private sector agrees with the specific objectives of the CAADP which is to support country-driven agricultural development strategies and programmes by establishing clear commitment to deliver on specific targets and stimulate agriculture-led development that eliminates hunger, reduces poverty and food insecurity, and contributes to the NEPAD vision for Africa.

The initiatives (ASDS and CAADP Compact) are a bold step in the development of the agricultural sector and move towards an innovative and commercially-oriented agriculture. The implementation of the ASDS and CAADP will require strong partnerships among the government, private sector, development partners and other non-state actors.

We, the private sector in agriculture, will continue to work closely with the Government to ensure services are delivered to producers and other players in the sector. Kenya is in need for an agrarian revolution where farmers even on small scale will be treated as serious business people and serious entrepreneurs. While the government has the duty to provide an enabling environment for this to happen, the success of this endeavor will depend on all members of the private sector - farmers, industrialists, fisheries and business people.

Agriculture is the mainstay of the Kenyan economy directly contributing 26 per cent of the GDP annually, and another 25 per cent indirectly. The sector accounts for 65 per cent of Kenya's total exports and provides more than 70 per cent of informal employment in the rural areas. Therefore, the agricultural sector is not only the driver of Kenya's economy but also the means of livelihood for the majority of Kenyan people.

The agricultural sector comprises the following subsectors: crops, livestock, fisheries, land, water, cooperatives, environment, regional development and forestry. The sector also includes the development of arid and semi-arid lands. Thus, there are many players and stakeholders in the sector due to its role in the economy and its rural-based nature that touches the livelihoods of many people.

In 2003, the NARC Government developed and launched the Economic Recovery Strategy for Wealth and Employment Creation (ERS) as the blueprint for setting the country back on the growth path. The strategy was a shift from previous planning documents that sought to reduce poverty instead of creating wealth and employment. It elaborated the role of agriculture and recognized that for the economy to grow to create wealth and employment as the backbone of the economy, agriculture has to grow even faster. Agriculture was therefore given high prominence and priority in the ERS.

In 2004 the Government developed and launched the Strategy for Revitalizing Agriculture (SRA) as a follow up and response to the ERS. The SRA set out the Government's vision: To transform Kenya's agriculture into a profitable, commercially oriented and internationally and regionally competitive economic activity that provides high quality, gainful employment to Kenyans. The SRA set the target of agricultural growth at an average annual rate of 3.1 per cent during 2003 - 2007 to reach over 5 per cent by 2007.

Implementation of this strategy has over the last 5 years generally been successful. By 2007, agricultural growth had surpassed the SRA target: it grew at an average of 5.2 per cent reaching a high of 6.4 per cent in 2006. Other achievements of the SRA include the reduction of food insecurity by over 12 per cent and of poverty by over 10 per cent between 2003 and 2007; increased productivity of key commodities such as tea, maize, sugar, horticulture, milk and meat each by an average of over 6 per cent per annum between 2003 and 2007; and the revival of most agricultural institutions. While the foundations for these gains are still intact, the growth trend was interrupted in 2008 by external forces that included the post - election violence, global food price crises, escalating fuel prices, and the global financial meltdown. It is, therefore, imperative that this interruption is removed so that the sector can go back to the increasing growth path.
Vision 2030

The ERS was a 5-year plan that was to expire during the financial year 2007/08. By early 2007, the Government started developing a new strategy to take over from the ERS. In June 2008, the Government launched the Kenya Vision 2030 as the new long-term development blueprint for the country. Its vision is: A globally competitive and prosperous country with a high quality of life by 2030. Vision 2030 has identified agriculture as one of the key sectors to deliver the 10 per cent annual economic growth rate envisaged under the economic pillar.

With most SRA targets achieved and a new government formed in 2008, it was necessary to revise the SRA to capture these new developments. The new strategy is required to strategically position the agricultural sector as a key driver for delivering the 10 per cent annual economic growth rate envisaged under the economic pillar of Vision 2030. It provides a guide for the public and private sectors' effort in overcoming development challenges facing the agricultural sector.
In the last 5 years the sector has been revitalized and placed on the path for further development. Hence, this strategy is perceived as an Agricultural Sector Development Strategy (ASDS). Although much has been achieved during the period, the challenges of food security, poverty reduction and transforming agriculture from subsistence to farming as a business - agribusiness, markets, efficient use of inputs and agricultural credit - still remain. The ASDS seeks to progressively reduce unemployment and poverty, and to spur agriculture back to growth trends.

Growth rate
The vision of the ASDS is: A food-secure and prosperous nation. Since the agricultural sector is still the backbone of Kenya's economy - and the means of livelihood for most of the rural population - it is inevitably the key to food security and poverty reduction.
The overall goal of the agricultural sector is to achieve an average growth rate of 7 per cent per year over the next 5 years. Given the critical strategic issues that need to be addressed, the strategic mission for the sector is: An innovative, commercially oriented and modern agriculture.
The overall development and growth of the sector is anchored in two strategic thrusts:
- increasing productivity, commercialization and competitiveness of agricultural commodities and enterprises
- developing and managing key factors of production.

Assuming a conducive external environment and support from enabling sectors and factors, the agricultural sector has set the following targets to be achieved by 2015:
- Reduced number of people living below absolute poverty lines to less than 25 per cent to achieve the first MDG (Millennium Development Goal).
- Reduced food insecurity by 30 per cent to surpass the MDGs.
- Increased contribution of agriculture to the GDP by more than KES 80 billion per year as set out in Vision 2030.
- Divest from all state corporations handling production, processing and marketing that can be better done by the private sector.
- Reformed and streamlined agricultural services such as in research, extension, training and regulatory institutions to make them effective and efficient.

Exports
The strategic thrust of increasing the productivity, commercialization and competitiveness of agricultural commodities will enable the sector to export more outputs, earn the country foreign exchange, and create employment. With the responsibilities of the agricultural sector currently spread across 10 ministries and the need for partnerships with several other ministries and stakeholders, implementation of the ASDS will require strong partnerships among the Government, private sector, development partners and other non - State actors. A sector-wide approach and strong coordination mechanisms will be instrumental in the success of the strategy.

At the national level, sector ministries and the Agricultural Sector Coordination Unit organizes the sector's biennial national forum of stakeholders. The forum discusses problems constraining progress and ways of overcoming them, and considers current and future prospects. To give the forum adequate authority, the highest political authority will preside over it.

At the middle level, the inter-ministerial coordination committee will be expanded to include all ministries that provide services to the agricultural sector. The committee will comprise permanent secretaries of the lead and collaborating ministries, and will be responsible for coordinating the planning of the strategy at the sector level and monitoring its implementation to ensure that its goals are achieved.

The role of ASCU in transforming agriculture

The Agricultural Sector Coordination Unit (ASCU) was established three years ago to address the hitherto disjointed responsibilities between the agricultural development ministries and non - state actors involved in the implementation of the Strategy for Revitalizing Agriculture (SRA) 2004 - 2014.

The unit is made up of a small secretariat located at Nairobi's Kilimo House, the headquarters of the Ministry of Agriculture, with personnel recruited either competitively or seconded from key constituent ministries. The officers seconded to ASCU are independent of their parent ministries.

ASCU's mandate is to facilitate and add value to the reform process and coordinate the sector ministries and other stakeholder efforts towards the implementation of the SRA, which is now revised to the Agricultural Sector Development Strategy (ASDS 2010 - 2020) to respond to the Vision 2030 objectives and in line with the Millennium Development Goals (MDGs).

The role of ASCU is to drive the reform processes in the sector and fast track the implementation of the ASDS through well-coordinated action across sector ministries and other partners. The unit was specifically established to be a referral centre for reforms (collect, analyze and disseminate information on agricultural reform); influence funding to areas of highest impact initiate major studies and policy developments within the agricultural sector; be a centre for empowering all stakeholders involved or affected by the agricultural reform; and monitor the implementation of the ASDS activities.
Thematic working groups

To fast-track interventions of reforms, thematic areas have been formed on Parastatals, legal and regulatory reforms; Research and extension; Agribusiness, marketing and value-addition; Agricultural inputs and financial services; Food security and nutrition policy and programme; and Environment, sustainable land and natural resources management.

Members of the thematic working groups are drawn from the private sector and non - governmental organizations, universities, civil society, sector ministries and development partners. The groups are chaired by a private sector representative and convened by directors from the sector ministries. ASCU provides the secretariat and interactive linkage across the sub-sector and stakeholders.

The TWGs carry out in-depth analysis of a particular area of the ASDS in order to prepare well-structured and coherent action plans and subsequent programmes for investment by the Government and its development partners. TWGs also guide the implementation of issues within the area they are charged with. The TWGs also prepare various policy documents and their implementation frameworks in the sector.

The strategy is implemented at various levels of the government structure. ASCU organizes requisite training and capacity support on the implementation of the strategy. In addition, ASCU has clear institutional linkages with other existing institutions and organizations both in the public and private sectors.

At the national level, an Annual National Forum of the stakeholders in the sector, organized by the sector ministries and ASCU ensures political will, gives the strategy a niche and prominence, and provides a platform for reviewing progress in its implementation to ensure objectives are achieved. The forum discusses problems that may be hindering progress while identifying ways to overcome them.

To address these problems, this strategy defines a new and enhanced role for the private sector and its stakeholders, which includes advocacy, lobbying, development and promotion as well as service delivery. The strategy emphasizes partnerships between farmers and agribusiness associations.

One major private sector stakeholder in agriculture is the farmer/primary producer. The strategy recognizes farmer member associations/commodity associations as the key entry point for interventions to enhance the capacity of this category. One of the outputs that ASCU is therefore working towards strengthening the agriculture and  agribusiness private sector associations and organizations. ASCU will continue to facilitate and coordinate the reform process in the agricultural sector to conform to the government's objective of transforming Kenya into a newly industrialized nation by 2030.

The Comprehensive Africa Agriculture Development Programme (CAADP)

In June 2003 at Maputo, Mozambique, the OAU Heads of State and Governments signed the Maputo Declaration which endorsed the Comprehensive Africa Agriculture Development Programme (CAADP). CAADP's specific objective is to support country-driven agricultural development strategies and programmes by establishing clear commitment to deliver on specific targets. Key among these includes the requirement for governments to invest 10 per cent of national budgets in the agricultural sector and achieving a 6 per cent growth in agricultural GDP.

The ASDS has mainstreamed the principles of CAADP Including taking on board all the four pillars of CAADP. The pillars have been operationalized through the Thematic Working Groups (TWGs) that have been set up under the Agricultural Sector Coordination Unit (ASCU). These are composed of both public and private sector stakeholders. The ASDS is therefore Kenya's tool for implementing CAADP.

The CAADP country process' requires prioritizing investments and costing options to focus on the best returns to investment as a formal expression of the commitment to support identified priorities. The Government, Development Partners and other key stakeholders will on Saturday, 24 July 2010 jointly sign the Kenya CAADP Compact, which is the document that provides in a summary format, strategic priorities identified for implementation.