Kenya needs to rethink how to reduce food waste and loss annually, considering the value of per capita food loss and waste is Sh72 billion annually.
Figures by the UNEP 2021 Food Waste Index Report also show that Kenyans discard an average of 99 kilograms of food per year, contributing to a total annual waste of 5.2 tonnes for the country.
These figures came out Tuesday, when experts in the agriculture space met in Nairobi for a media launch on Financing Agri-food Systems Sustainably (FINAS) 2025 Summit that will be held in May this year.
The summit will focus on inclusive food system policy, the youth Agenda, funding as well as innovation, data and technology.
Speaking during the media launch of the FINAS Summit, International Fund for Agricultural Development (IFAD) Regional Programme Manager Moses Abukari said that in Sub-Saharan Africa (SSA), per capita food loss and waste is 120-170 kg annually, and some estimate USD 4 billion from grain loss.
“Surely, there is a need for deliberate efforts to regain the value of food loss and waste and rather reinvest this capital,” he added.
Abukari explained that in 2024 the Agriculture and Rural Development Partners Group (ARDPG), a group of development partners that has been working with the government of Kenya to pilot the use of the Financial Flows to Food Systems (3FS) tool, reported that Kenya spends on average USD 1.63 billion annually on food systems.
The report notes that of the total USD 6.5 billion invested in food systems, 75 per cent was Domestic financing and 25 per cent was international, but with interesting financing trends: decreasing Official Development Assistance (ODA) but increasing Other Official Flows such as investments and philanthropic organisations.
This, Abukari said, gives a baseline on the starting point for food systems investment planning in order to set the right ambition for transforming the country’s food system agenda and, therefore, a need to embrace innovation and define a new norm for support food systems growth.
“Traditional funding models are no longer sufficient to meet the growing demands of our agri-food systems. We need to explore creative solutions by leveraging technology, fostering public-private partnerships and innovation, and adopting sustainable practices that maximise the impact of every dollar invested.
This, however, he noted, can only be achieved if there is the right mix of policy support, investment climate and collaborative partnership among governments, private sector players, civil society, and international organisations.
“It is critical now more than ever given the evolving global development architecture. Together, we can pool resources, strengthen financial resilience, share knowledge and expertise, and, more importantly, scale up proven and tested successful models in input financing across value chains, carbon, climate, regenerative and even digital financing.
He said that the UN Food Systems Summit has called for an ambitious financing agenda to meet the challenge of food systems transformation through mobilising USD 350 billion of additional investment per year, and in Africa the estimate is between USD 13 to 78 billion.
The food systems summit is also looking at curbing the USD 12 trillion that is lost every year in environmental, social and economic costs because of the way food systems operate by optimising resource allocation.
Abukari said that ARDPG is committed to meaningful change and workable solutions to support food systems investments by working closely with all food systems actors.
“This summit is a call to build sustainable agri-food systems that can nourish generations to come, but we need to ask whether we are investing in the right mix of food systems and transformations that are nutritious, healthy, inclusive and sustainable with zero environmental, social and economic cost to today’s and tomorrow’s populations.
Food system components are Agriculture and Value Chains, Infrastructure for Food Systems; Nutrition, Social Assistance and Climate Change and Natural Resources.
Freddy Bob-Jones, the Managing Director at ACELI Africa, said that Agriculture plays a critical role in Kenya’s economy and contributes to one-third of all jobs, but despite this, it faces a persistent challenge of finance due to the high risks and costs of lending to the sector.
“The average yield on a 10-year government bond is about 14 per cent whilst, according to research and data collected, the average return on agricultural loans for a commercial bank is around 3 per cent,” he said.
As a result, Jones said the sector has historically received only 4 to 5 per cent of commercial bank capital.
“We are working with the Kenyan Bankers Association and others such as AGRA and FSD Africa to address regulatory issues that are currently constraining agri-lending in Kenya,” he said.
He explained that since their launch of ACELI as a market catalyst, mobilising private capital to create a more inclusive and sustainable food system, they are working with 45 banks and non-bank financial institutions to unlock USD 293 billion in financing over 3,000 agri-SMEs across Kenya and East Africa.
“61 per cent of these loans have gone to businesses accessing finance for the first time. By providing access to finance, these Agri-SMEs create market access and employment for over 1.5 million smallholder farmers and workers,” Jones added.
Dr. Charity Mutegi, the summit Director, said this year’s meeting will focus on the role of the state in the development of an agricultural finance system, evidence on tracking financing flows for food systems in Africa, rural development finance, and a look at the Kampala Declaration on commitment for funding.
On his part, Agriculture Principal Secretary Dr. Kipronoh Rono, who officially opened the media launch, said the government, in collaboration with the support from GiZ, is developing a policy framework for sustainable financing and subsidy management in agriculture.
By Wangari Ndirangu
