Kenya to lease land to Israeli investors for wheat production

Kenya is set to make another agricultural collaboration with Israel, with plans to lease vast tracts of land to Israeli investors for wheat production, a move expected to bolster Kenya's agricultural output and strengthen ties between the two(2) nations.

The agreement, which follows discussions between Kenya’s Prime Cabinet Secretary Musalia Mudavadi, and Israel’s Agriculture Minister Avi Dichter, aims to bring Israeli investment into thousands of hectares of Kenyan farmland. 

The plan is set to span 25 years, with the two governments offering logistical support and ensuring a conducive environment for the partnership to flourish.

“This is a private-private arrangement that will be guaranteed by the two(2) governments by providing necessary logistics and a conducive environment,” Mr Mudavadi said in a statement, emphasising that both countries will work together to ensure the success of the initiative.

The agreement aligns with Israel’s broader strategy to mitigate the effects of its own declining food production, which has been exacerbated by external factors, including the ongoing war in Ukraine.

Kenya, on the other hand, stands to benefit from Israel’s advanced agricultural technologies, which promise to increase wheat production for the domestic market and potentially make Kenyan-grown wheat more competitive on a global scale.

This deal reflects Kenya’s commitment to commercialising large-scale agriculture on public land, a policy approved by the Kenyan Cabinet in 2022 under former President Uhuru Kenyatta.

This policy seeks to establish a framework for leasing idle land owned by public institutions, prioritising irrigation-based farming over traditional rain-fed methods.

Israeli investors are expected to collaborate closely with local farmers to introduce innovative farming techniques that lower production costs, increase yields, and ensure sustainable farming practices through water-efficient technologies.

The partnership is expected to modernise Kenyan agriculture and address the country’s ongoing challenges in food security.

Dichter expressed optimism about the new wheat farming initiative, emphasising the potential of Kenya’s vast arable land and the transformative impact of Israeli agricultural technology.

“Our advanced technologies can help Kenya overcome its agricultural challenges,” Dichter said, referring to Israel’s expertise in water-efficient farming methods, which have the potential to revolutionise agriculture in water-scarce regions like Kenya.

A recent feasibility study conducted by Kenya’s National Irrigation Authority pointed to a lack of basic infrastructure--such as electricity, potable water, and essential services--as a major barrier to private-sector investment in agriculture. 

Mr Mudavadi acknowledged these concerns and stated that the Kenyan government is committed to addressing these infrastructural gaps to create a more attractive environment for investors.

Learning from the Galana-Kulalu experience

This new initiative arrives in the wake of a previous Israeli-led maize farming project at the Galana-Kulalu irrigation scheme, which faced considerable setbacks.

Launched in 2015 as part of Kenya’s “Big 4” agenda for food security, the project aimed to cultivate one million acres of land.

However, the plan stumbled when Green Arava, an Israeli firm tasked with developing a model farm on 10,000 acres, managed to cultivate only 500 acres before the contract was terminated.

The project faced criticism for slow implementation and cost overruns, with the National Irrigation Authority eventually pulling the plug on the venture.

Despite these challenges, the Galana-Kulalu Food Security Project remains an important case study for large-scale agricultural investments in Kenya.

Initially expected to cost the government Sh7 billion (US$54 million), the project has struggled with issues ranging from mismanagement to corruption. 

However, recent efforts to revitalise the project have been made, including the government’s allocation of Sh1.1 billion (US$8 million) for the electrification of the scheme in 2023, in hopes of attracting private investment and boosting local crop production.