Kenya is seeking private investment in potato-processing factories, certified seed production and commercial farming as the country looks to reduce reliance on imported potato products, strengthen domestic manufacturing and increase earnings for farmers.
Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe made the appeal at the opening of the 13th World Potato Congress in Naivasha, Nakuru County. The event, running from October 26 to 30, attracted about 1,000 delegates from 67 countries, bringing together farmers, researchers, policymakers, investors and industry representatives. It is the first edition of the congress to be hosted in Sub-Saharan Africa.
Kagwe identified import substitution as a major opportunity for investors, saying domestic supply meets only about 40 per cent of Kenya’s demand for potato products, while imports account for the remaining 60 per cent, according to estimates cited during preparations for the congress. He called for investment in local processing facilities and stronger links between farmers and commercial buyers, including hotels, restaurants and fast-food businesses.
The government hopes that expanding domestic processing will allow Kenya to retain more value from its potato industry, create jobs and develop products capable of competing in regional markets. Kagwe also invited investors to explore the government’s Land Commercialisation Initiative, which seeks to lease idle public land to private investors for long-term agricultural production. He linked the proposal to investment in irrigation, modern technology and reliable routes to market.
The opportunity comes as Kenya’s potato industry faces a gap between its importance to food security and its ability to supply processors consistently. According to the Kenya National Bureau of Statistics’ National Agriculture Production Report 2025, the country produced approximately 2.15 million tonnes of potatoes in 2024, down from 2.31 million tonnes in 2023. The value of production nevertheless increased to KSh72.5 billion, equivalent to approximately $562 million, from KSh65.9 billion a year earlier.
The report attributed the production decline partly to unfavourable weather, including failed short rains and excessive long rains that encouraged fungal diseases such as potato blight. These fluctuations matter to processors, which need dependable volumes and consistent quality to operate factories efficiently and maintain supply contracts.
Smallholders remain central to the industry. The national agriculture report says about 90 per cent of Kenya’s potatoes are grown on farms smaller than half an acre, making access to quality seed, extension services, storage and structured markets important to any expansion of commercial processing.
Kagwe highlighted ongoing research by the Kenya Agricultural and Livestock Research Organization and the International Potato Center to develop a late-blight-resistant potato based on the popular Shangi variety. He also cited Clone IG-70, a drought- and blight-tolerant variety undergoing final verification, alongside efforts to expand access to certified planting material. The initiatives are intended to help farmers manage disease risks and improve production reliability.
The government is also considering proposals to zero-rate potato-processing machinery, with Kagwe saying he was ready to engage the National Treasury. The proposal is not yet a confirmed tax incentive; the minister asked industry stakeholders to submit specific requests identifying the equipment and support required. The congress is expected to help connect potential investors with seed suppliers, researchers, technology providers and commercial growers.
NBF Insight
Kenya’s potato-processing ambitions depend on more than attracting factories. Investors need consistent raw-material supplies, suitable varieties, reliable storage, efficient transport and farmers who can meet quality and delivery requirements. Without those foundations, processing capacity risks remaining underused or relying on imported inputs.
The reported gap between local supply and demand for potato products presents a commercial opportunity, but it should not be mistaken for a guaranteed market for every proposed factory. Investors will need to assess consumer demand, production costs, import competition, and the economics of sourcing potatoes from dispersed smallholder farms.
The World Potato Congress gives Kenya an international platform to pursue these partnerships. Its longer-term value, however, will be measured by whether discussions produce actual investment, stronger contracts for farmers, more reliable supplies of certified seed and a commercially sustainable domestic processing industry.
