Kenya Agribusiness Q3 2019
Despite a strong recovery in Kenyan agricultural production after the drought of 2016/17, the sector will face anothertough year in 2019/20 as dry weather returns. We expect grain, coffee and sugar production to decline as a result and see downsiderisks to consumption (namely grains) as regional suppliers such as South Africa and Zambia will be exporting less owing to dryweather impacting their domestic supply. In addition, the sector will suffer from slow progress with the privatisation of the country'sstate-owned sugar mills and a number of coffee support programmes failing to boost production. In the long term, we expectoutput to recover owing to base effects.
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