Kenya is growing and doing so at a healthy pace. Her success in the horticulture industry is one that has been a source of pride to the continent. It has seen viable jobs created and has been an eye-opener to the vast potential of this continent.
Thinking of investing in the agricultural sector in Kenya? We will suggest you look into the horticulture industry and have drawn up a guide to help you out. Before you read our article below, be kindly reminded of our social media platform which is a great place to network with lovely minds. It is also a one-stop-shop for everything business related in Africa.
Do your groundwork in Kenya
Horticulture contributes to 24% of the GDP of Kenya but only 4% is exported. It is thus up to you to know which plants are viable. You would also have to plan how you will create a market for those with a huge dearth in supply.
In addition to this, it is important you do your investigations of your choice of location and all needed logistics. Make sure you have a working list of all your needs. When you are done, draw out a suitable business plan to guide you.
Get the requisite documents before investing in horticulture
Firstly you would need to get a Class F or Class G work permit to be able to start a business in Kenya. You must check up with the department of immigration to find out the requisite documents. You can check it up on their website or pass by an embassy to verify.
You will then need to register your business and get all the needed authorizations from the regulatory authorities. It is important to reach out to the Kenya Investment Authority to find out the requisite documents and seek their help in facilitating their acquisition.
Make plans for your supply-demand chain
Proximity of your facility to avenues of supply of farm inputs and delivery of produce is vital. A place where you can readily get your farm supplies at the least notice and ship your plants without them losing quality is apt.
If you plan to set up your facility at a site where land is cheap, you should be ready to implement the use of apt preservation techniques. All these should factor into your plans as you draw your budget. Check with the Kenya Investment Authority if there are incentives like tax breaks and duty-free protocols on materials you might import or use.
Seek finances throughout Kenya
If you are coming to invest in any country, it is important to have at least $100,000 of personal funds reserved for such purpose. Kenyan laws actually require you to show proof of this before going ahead to get your permit.
If you know your budget exceeds this, it is important to have a plan as to how you will make up for the extra sum. Firstly it is an excellent move to verify from the Kenya Investment Authority if the government has any soft loan schemes for your choice of investment.
Get your land
As you might have noticed if you have been reading our articles, foreigners can’t own land in most African countries. Kenya is no exception. As a foreigner, you can only lease land for a maximum of 99 years.
There are ways to circumvent this though. The best option is to partner with a Kenyan or Kenyan citizen. You can then register the business as a limited liability and then register the land and other assets under the name of the company.
Recruit workers locally in Kenya
Horticulture farming in Kenya is a nation that has been fine-tuned to near perfection for more than half a century. You will therefore not have any trouble finding skilled persons for your investment.
It is important though to seek the services of extension personnel from the Ministry of Agriculture. They will offer you priceless knowledge and tips. They might even avail you of perks from the government.
Do a pilot project before the investment
After setting up shop and getting everything going, it is crucial you test the efficiency of your enterprise. This will aid you to identify any loopholes and troubleshoot them before you fully commence operations.
Set an expected time frame for all your processes and observe how smoothly things will go right from supply to production to the market. When this is successful, you can then up things to operate at full capacity.
With this knowledge at the back of your mind, your investment in the horticulture industry will be well guided and more efficient. We hope you would be able to garner the apt resources and start your enterprise soon. Africa needs more spur to its economy and people.
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FAQ Investing in Horticulture in Kenya
Are Kenyans tolerant of foreigners?
Kenyans are a hospitable people. Even if you are not Kenyan, you would be embraced as one of their own. As it is with most African nations, Kenyans are hospitable and this would reflect in their kind dealings with you. You are welcome to Kenya and you are safe there.
Is Kenya a nation at war?
Kenya is not at war and hasn’t been since the legendary Mau Mau uprising pre-independence. There have been few incidents of terrorist attacks over the past three decades. This has slightly increased over the past decade. Such attacks are largely restricted to a few areas and those places are on high-security alert.
Will my rights be abused in Kenya?
No, your rights will not be abused in Kenya. You are entitled to all universal rights as a human being and those enshrined by the constitution of Kenya. The professional security personnel are always on standby to step in whenever you face any trouble. Just make sure you stick to doing the right thing.