Kenya's leading agricultural companies warn of declining margins as input costs rise

Kenya's leading agricultural companies warn of declining margins as input costs rise by 18% by 2025 and access to credit has worsened. 61% of respondents report higher interest rates. The top agricultural companies in Kenya are: 1. East African Breweries Limited (EABL): They are a leading company in the beer, spirits, and soft drinks sectors in East Africa. The raw materials for beer production, primarily barley and sorghum, come from Kenya. 2. Bidco Africa: Is a major company active in the production of edible oil, soaps, hygiene products, and sugar. Sugarcane, as a raw material, is grown primarily in western Kenya. 3. Mumias Sugar Company: They specialize in sugar production and are headquartered in Mumias, a region in western Kenya. 4. Delmonte Kenya: Produces and processes pineapple products, including canned pineapples, juice concentrates, and animal feed, and is a major pineapple exporter. 5. Brookside Dairy Limited: Is Kenya's largest dairy processing company with a 45% market share. It distributes dairy products in Kenya, Tanzania, and Uganda. 6. British American Tobacco (BAT): Also grows tobacco and works with thousands of farmers in various regions of Kenya. 7. Kakuzi Limited: Produces tea, avocados (Kenya's largest exporter), pineapples, macadamia nuts, livestock, and forestry products. Its parent company is the British-based Camellia Plc. 8. Kenya Nut Company: A leading macadamia and cashew nut processing company with an international market. It operates seven farms with its own production from seedling to finished product. These companies dominate the Kenyan agricultural market in various segments, from food production and processing to agricultural commodities and export products. In addition to these players, numerous other companies and financial institutions play a role in promoting and modernizing Kenya's agricultural sector, which accounts for approximately 34% of the gross domestic product. Agriculture is primarily characterized by smallholder farmers, who cultivate approximately 75% of the agricultural land. Important export products include tea, coffee, and horticultural products. These players and initiatives are shaping Kenya's agribusiness as an important part of the economy and are committed to innovation, sustainability, and financial support to promote growth in agriculture. Production volumes in Kenya have increased compared to the previous year, particularly in certain sectors such as the building materials industry. For example, in cement production, production rose from 6.2 million tons in 2019 to approximately 9.7 million tons in 2022. Metal processing also recorded growth, despite currently rising energy costs in the energy-intensive sector. However, in the manufacturing sector, Kenya experienced a decline in GDP in the first quarter of 2025, from KES 228.855 billion in the fourth quarter of 2024 to KES 219.743 billion in the first quarter of 2025. However, in the long term, GDP from manufacturing is expected to grow until 2027. Production volumes increased by 7% year-on-year, but export earnings slowed from 11% in 2024 to 4%. Almost half of CEOs plan to reduce capital expenditures, while 72% are shifting to climate-friendly agriculture. In summary, a year-on-year comparison showed a mixed picture, with growth in some sectors (such as building materials production) and temporary declines in manufacturing in early 2025, but positive developments are expected in the coming years. The outlook for the sector depends on financing and export demand. @https://tradingeconomics.com/kenya/gdp-from-manufacturing @https://allafrica.com/view/group/main/main/id/00078972.html @https://acrobat.adobe.com/id/urn:aaid:sc:EU:2cddb5a5-95c4-4150-bc37-22a9b4191f32 @https://www.universalaccessproject.org/company-commitments/fresh-del-monte @https://sites.utexas.edu/culturescontexts/tag/brookside-dairy-limited @https://biznakenya.com/top-agribusiness-companies/ @https://www.f6s.com/companies/agriculture/kenya/co @https://marcopolis.net/top-agriculture-and-agribusiness-companies-in-kenya.htm @https://de.tradingeconomics.com/kenya/gdp-from-manufacturing @https://www.gtai.de/de/trade/kenia/branchen/kenias-bausektor-hofft-auf-ein-ende-der-flaute-621308 @https://kam.co.ke/manufacturing-outlook-2025-charting-the-path-to-kenyas-industrial-success/ @https://de.statista.com/statistik/daten/studie/1417948/umfrage/entwicklung-der-arbeitsproduktivitaet-in-kenia/ @https://en.wikipedia.org/wiki/Economy_of_Kenya @KenyanWallStreet