Kenya - 3.5.1 Food Suppliers | Digital Logistics Capacity Assessments

Overview

The ability to procure food in the Kenyan depends on the availability and prices of the food commodities available in the markets. The foods in the markets are either imported or locally produced. During failed rain seasons, imported food commodities dominating the markets are mostly imported and their prices are likely to be higher due to inflationary trends mainly due to fall in value of the local currency against the major currencies like the US dollar.

Competition in the Kenyan food markets is high pitting large suppliers and importers against small traders mostly dealing with locally production.

Local food production is not able to meet local food demands as agriculture is heavily reliant on rain-fed systems, which are vulnerable to droughts and floods. This has led to frequent crop failures, which in turn have contributed to food shortages and high food prices. The strategy for achieving food security has been two pronged: 1. The Government supports efforts to increase agricultural productivity through development and application of technology and strengthening of extension services. 2. The Government supports purchase and storage of Strategic Grain Reserves (SGR).

Kenyan buys more than 80% of what is consumed with more than 15% of food consumed by households being what they produce. Food purchases are highest among households living in urban areas where at least 93.5%of food is bought with Nairobi and Mombasa cities leading the way. None of the 47 counties does a third of food consumed by households come from their own production, while only 10 counties do at least a quarter of food consumed come from household production. Nationally, food consumed from purchases accounts for 82.5% of food consumed. Only 7 counties, Elgeyo Marakwet (31,2%), Nyandarua (30.9%), Homabay (29.2%), Nandi (27.7%), Kisii (27.3%), West Pokot (26.2%) and Bomet (25.9%) have homegrown food consumption above a quarter of food consumed.

Estimated maize production decreased from 36.7 million bags in 2021 to 34.3 million bags in 2022, similarly tea production decreased from 537,800 tonnes in 2021 to 535,000 tonnes in 2022 due to low rainfall in tea growing areas. Additionally, volume of marketed milk declined from 801.9 million litres in 2021 to 764.3 million litres in 2022, largely due to drought leading to shortage of fodder for livestock.

As agricultural output has declined, rate of food importation has risen, increasing the rate at which households must buy what to eat. For example, maize import has increased by 50% from 2018 to 2023 reaching 793,751 tonnes in 2022 while Rice import has increased from 599,339 tonnes to 678,088 in the same period.

For more information on availability of food in Kenya, refer to the link below;

https://nation.africa/kenya/business/report-kenyans-now-buy-80pc-of-the-food-they-eat-4285902

4.10 Supplier Contact List.

Retail Sector

The Kenya retail sector continue to register increased market activities as evidenced by aggressive expansion of major local and international retailers, and developments. Some of the retailers who have been on an aggressive expansion drive during in the year 2022 include;

Naivas supermarket which opened 5 new stores spread across Nairobi, Machakos, Kiambu, and, Nakuru Counties, and plans to open a new outlet in Meru County.

QuickMart supermarket which opened 3 new stores in Nairobi and Kitengela Counties, and.

Chandarana Food Plus which opened a new outlet in Nairobi’s Westlands, and plans to open 4 new outlets in the country.

For more information on retail sector, please see the following link;

https://cytonnreport.com/topicals/kenya-retail-report-2

Types of Retailers Available
Type of Retailer	Rank (1-5)
Supermarket – concentrates mainly in supplying a range of food, beverage, cleaning and sanitation products; have significant purchasing power; are often part of national/regional/global chains.	1
Convenience Store/Mini Market – medium sized shop; offers a more limited range of products than supermarkets; usually has good/stable purchasing power; may be part of chain or cooperative.	1
Permanent shop with strong supply capacity – individually/family-owned store; usually offers fewer commodities and a limited selection of brands; good storage and reliable supply options.	1
Permanent shop with limited supply capacity – individually/family-owned store; offers fewer commodities and a limited selection of brands; limited storage and unstable supply options.	1
Mobile Shop/Market Stand – individually/family-owned store; usually offers fewer commodities and a limited selection of brands; may be found at outdoor markets, camps or unstable environments.	2

Wholesale – HELENA AGSPACE LIMITED

Helena Agspace was formed in Homabay county in Kenya 2017 but officially registered by the government of Kenya as a company in 2019. Its main aim was to lift the living standards of farmers in that region by linking them to markets, teaching them about modern ways to farm and also giving them access to proper farm inputs.

It started off with around 20 farmers with maize aggregation then beans and finally found a home in white sorghum farming as its more structured and the farmers are very sure of the prices before they plant. Now it has around 1500 contracted farmers under its name and still hoping to recruit more under the same program.

Helena Agspace has not only brought the market nearer to the farmers but has also helped farmers with access to seeds on credit and promoted farm mechanization by letting farmers access to these services on loan which they later pay on credit.

Supplier Overview
Company Name	HELENA AGSPACE LIMITED
Address
Does the supplier have its own production / manufacturing capacity?	Yes. The supplier is directly engaged in farming and agriculture.
Does the supplier have its own retail capacity?	Yes. The supplier provides commodities directly to the consumer.
Does the supplier have its own transport capacity?	Yes
Does the supplier have its own storage facilities?	Yes
Approximate Turnover in MT	-
Payment Methods Accepted	Cheques and electronic transfers
Other Comments or Key Information	Helena Agspace tries as much as possible to partner with like-minded individuals and organizations to make work easier for the farmers. Farm to Market Alliance (FtMA) which offers training to farmers on good agricultural practices thereby equipping them with knowledge and the skills required to be good farmers. This has improved their yields which means that they are earning more from the same parcels of land. They have also linked farmers to financial institutions who aid in giving them short term credit in the form of farm implements like certified seeds and fertilizer.

Primary Goods / Commodities Available
Commodities by Type** (SITC Rev 4 Division Code - Title)		Comments
00 - Live animals (other than fish, crustaceans, molluscs, etc.)	i.e. sheep and goats, swine, poultry…	Imported, produced / manufactured locally; with seasonal variations in stocks.
01 - Meat and meat preparations	i.e meat of bovine animals, meat of sheep, dried or smoked meat of swine, sausages…	Imported, produced / manufactured locally; with seasonal variations in stocks.
02 - Dairy products and birds’ eggs	i.e. milk, yogurt, butter, cheese, eggs…	Imported, produced / manufactured locally; with seasonal variations in stocks.
03 - Fish (not marine mammals), crustaceans, molluscs…	i.e. fish (chilled or frozen), fish (salted or in brine), fish liver and roes…	Imported, produced / manufactured locally; with seasonal variations in stocks.
04 - Cereals and cereal preparations	i.e. wheat, rice, flour of maize, pasta...	Imported, produced / manufactured locally; with seasonal variations in stocks.
05 - Vegetables and fruit	i.e. vegetables, fruit and nuts, jams/jellies, fruit juices…	Imported, produced / manufactured locally; with seasonal variations in stocks.
06 - Sugars, sugar preparations and honey	i.e. sugars (beet or cane) raw, natural honey, fruit/nuts preserved by sugar …	Imported, produced / manufactured locally; with seasonal variations in stocks.
07 - Coffee, tea, cocoa, spices and manufactures thereof	i.e. coffee, cocoa, chocolate, tea, mate, pepper…	Imported, produced / manufactured locally; with seasonal variations in stocks.
09 - Miscellaneous edible products and preparations	i.e. ready-to-eat foods, margarine, sauces, soups and broths, yeasts…	Imported, produced / manufactured locally; with seasonal variations in stocks.
41 - Animal oils and fats	i.e. lard, fats and oils…	Imported, produced / manufactured locally; with seasonal variations in stocks.
42/43 - Fixed vegetable fats and oils, crude, refined or fractionated	i.e. soya bean oil, olive oil, maize oil, vegetable oil…	Imported, produced / manufactured locally; with seasonal variations in stocks.

**For non-FOOD products please see section 3.1 Fuel for FUEL/PETROLEUM products

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not able to endorse, comment on any company's suitability as a reputable service provider.