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Enhancing Rice Value Chain for Job Creation in Kenya

By Ramadhan Mafta and MaryAnne Gitimu

Introduction

Rice is the third most consumed cereal crop after maize and wheat due to changes in eating habits, with annual consumption rate at 12 per cent (KNBS 2020, Economic Survey). The fourth Medium-Term Plan and the Rice Bill 2023 identify rice as a key value chain, outlining strategies to enhance its production, value addition and market access. The rice value chain includes pre-planting, growth and post-production. Rice production in Kenya does not meet the current demand, presenting an opportunity for expansion, which in turn creates more jobs. The Kenya National Rice Development Strategy (2019- 2030) is focused on ensuring Kenya attain self-sufficiency by 2030, projecting rice production to increase at a rate of 9.31 per cent per annum. In fulfillment of this goal, opportunities arise for employment along the value chain, such as farmers, seed inspectors, marketers, truck drivers, technicians, among others. However, growth in this sector is constrained by inappropriate technology, inadequate supply of quality seeds and high input costs. This blog focuses on the potential of job creation along the rice value chain from production to processing and marketing.

Status of Rice farming Progress in rice value chain

Jobs creation through rice production

Domestic rice production was 229.1 metric tons, meeting only 10 per cent of the local demand supplemented by 937.1 metric tons of imports by 2023. Meanwhile, approximately 300,000 rice farmers rely on rice farming for their livelihood. The total land area under rice production was estimated at 42,895 hectares in 2019, employing 15,547 farmers as outlined in Table 1. Rice paddy production increased by 68.5 MT supported by an increase of 18,647 plot holders in the rice irrigation schemes in 2023. The area cropped in irrigation schemes has improved by 24,941 in the same period as shown in Figure 1 below. This demonstrates the untapped potential in the schemes for more produce and jobs.

SchemeAcreage under Irrigation (ha)Hectares Cropped (ha)Yield (tonnes)Number of Farmers
Mwea26,00025,710120,9967,022
Ahero2,5876708,4732,000
West Kano2,8307399,423836
Bunyala1,7346313,6861,394
Bura3,5001,0001,0832,245
Tana4,7002,0009001,050
Lower Kuja1,5441,0004,8001,000
Total42,89531,750149,36115,547

Source of data: National Irrigation Authority (2020)

Figure 1: Plot holders and area cropped with Rice production and imports

Source of Data: KNBS (2019-2024), Economic Survey

Jobs in rice pre-planting value chain

Pre-planting activities such as land preparation, seed selection, and transplanting create diverse job opportunities. For instance, in the Mwea Irrigation Scheme, 17 tractors support mechanized farming, while 185 merchants engage in seed-related activities, including 15 certified seed producers. Women handle planting, the youth focus on mechanization, and men take on manual tasks, showcasing inclusive job creation potential.

Jobs in rice cultivation and value addition

Rice cultivation entails planting, irrigation, soil fertility management, weed control, and pest and disease management, creating jobs for both farmers and technical experts. The Kenya Plant Health Inspectorate Service reports staffing gaps in agricultural inspection and seed production, with shortages of 5 researchers, 10 technicians and 20 inspectors. These deficits highlight opportunities for job creation in technical and specialized roles to support the sector’s growth.

Post-production

The post-harvest stage creates jobs in harvesting, drying, storage, milling, and processing. NRDS reports 25 large and medium mills and 256 single-pass mills, alongside 72 tractors in Kirinyaga County, supporting mechanized and value-addition activities in the rice value chain, and therefore potential for employment in these areas.

Challenges for upgrading Rice Value Chain to Commercialization

Inappropriate technology

Milling efficiency in Kenya is constrained by outdated technology, leading to low-capacity utilization of 55 to 60 per cent in large mills and 20 to 50 per cent in small mills (Ministry of Agriculture, Livestock and Forestry, 2014). Many small mills designed for 30–100 bags/day produce only 15–20 bags/day. Inefficient single pass milling raises costs,

reduces rice recovery rates and limits profitability, affecting production costs and price margins.

Inadequate supply of quality seed

Currently, only 15 per cent of farmers use certified seeds, with a target of 75 per cent by 2030. Over-reliance on saved seeds limits private sector investment in improved varieties, hindering access to high quality seeds and in return low competitiveness and sustainability in global markets.

High cost of inputs

High cost of inputs hinders commercialization of the rice value chain. Medium millers face overheads 143 per cent higher than Ugandan counterparts (Ksh 281.4 vs 115.5 per 80kg bag), with labour, electricity, and rent as major expenses. These costs reduce competitiveness, limit investment in modern technology, and strain profitability, discouraging expansion.

Opportunity to promote Rice value chain and job creation

Expansion of irrigated farming

Expansion of the area under rice production to 174,000 ha by 2030 would increase productivity from 4.0 MT/ha to 7.5 MT/ha and optimize the available schemes. This would reduce imported volumes, encourage private sector investment, and lead to the formation of at least 3 new value-added rice products and 3 new producer marketing organizations, creating more job opportunities (NRDS, 2020).

Favourable transboundary trade practices

Regional and international markets, such as the African Continental Free Trade Area, provides an expanded market access to 1.3 billion people. Harmonizing trade tariffs provides an opportunity for rice producers to export and address 80 per cent domestic deficits, hence more jobs created.

Conclusion and Recommendations

Leveraging on rice value chain as a source of job creation presents an opportunity to reduce unemployment standing at 4.9 per cent (KNBS, 2020). The blog recommends the need to:

  • Adopt appropriate technology: Transit from single pass to multi-pass milling systems to enhance the quality and quantity of processed rice.
  • Enhance seed supply systems: Incentivize private sector investment in seed production to improve access to high-quality, high-yielding certified seeds.
  • Reduction in high cost of inputs: Provide tax incentives, solar-powered mills and streamline labour through mechanization and strengthen regional collaborations to harmonize overhead costs.

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