Kisumu set to benefit from an advanced agriculture & food security investment program

 

Kisumu Governor Prof Anyang Nyong'o during the signing of an MoU on  a flagship agriculture investment program in partnership with a UK-based company, United Green Group (UG)- Story and Photo By Dickson Odhiambo

May 17, 2022

 

Kisumu set to benefit from an advanced agriculture & food security investment program

 

Kisumu County has received a major boost following the signing of a flagship agriculture investment program in partnership with a UK-based company, United Green Group (UG).

 

 The partnership will deliver agri-tech and farming services and state-of-the-art agro-industrial facilities, creating new markets for farmers in the Lake Basin region over the next five years.

 

The investment via local Kenyan company, will adopt a rigorous development approach not yet seen before in the agriculture sector, which seeks to contribute to food security for Kenya and the region.

 

The venture will reduce Kenya’s dependence on importing food produce by approximately US$200 million annually thus reducing Kenya’s trade deficit.

 

The first phase of the agreement was signed today by Kisumu County Governor Anyang’ Nyong’o and United Green Director and Head, Agriculture & Food Investments, Rod Bassett. 

Other key stakeholders who witnessed the event were Deputy UK High Commissioner and Development Director, Julius Court.

 

Speaking during the signing event at Imperial Sarova in Kisumu County, Kisumu Governor Prof Peter Anyang Nyong’o said Kenya needs a champion organization to provide leadership and prudent investment, to develop inclusive, scalable, market-based, environmentally sustainable agri-food systems.

 

He says the project has incredible alignment to the County Government of Kisumu’s strategy and with the national Government's Big Four Agenda and Agricultural Sector Transformation and Growth Strategy (ASTGS) 2019-2029.

United Green Director and Head, Agriculture & Food Investments, Rod Bassett said they are proud to have found such committed foundation partners in KLDC and CGK and identified potential additional partnerships with local DFI’s and look forward to building a national champion business in the sector together.

 

This investment would not have been possible without the market orientation, business process guidance and support from: The UK Government, in particular the invaluable support from the British High Commission Kenya, Agricultural Transformation Office (ATO) and Ministry of Agriculture, Livestock, Fisheries and Cooperatives, Kenya.”

 

UK Deputy High Commissioner and Development Director, Julius Court said the UK Government commends this initiative from the British company, United Green and expresses its continued support for this transformative agriculture project being undertaken jointly by United Green and Kisumu County, with support from the Government of Kenya.

 

“We are excited about the impact with respect to job creation, enhanced crop production for the out-grower community and improved livelihoods and food security,” he says.

 

Once completed, the venture will be the largest and most modern integrated agri-food and services operation in Kenya, positioning the project as the leading strategic player in the development of the country’s high potential agricultural sector.

 

The venture’s primary farms will integrate with 100,000 hectares of surrounding farming communities via a unique smallholder farmer scheme, with the aim of increasing their productivity and providing support on sustainable farming methods.

 

The venture will subsequently commit to off-taker agreements with the farmers to ensure financial security for them. Through this, 20,000 rural households will be targeted for incorporation in the new agri-food operating system and at least 5,000+ indirect jobs will be created when the integrated enterprise is at full capacity. It is also estimated that approximately 2,000+ people will be directly employed when the enterprise is fully operational.

 

United Green is a British based private strategic investment group with specialist expertise, investment, and operating track record in developing and managing large scale Greenfield business enterprises globally across multiple sectors.

 

 The Kenyan investment project is part of its 5 year, US$1.5 Billion, agri-food capital investment strategy, via UK investment holding company UG Nutrition Limited.

 

The objective is to deliver both highly attractive economic returns, positive environmental and social outcomes within rural communities, and maintaining a constant supply of high quality, nutritious, and safe agricultural commodity, and consumer branded products for Kenyan consumers.

  The Kisumu Lakefront Development Corporation (KLDC) is an official investment and promotion agency of the County Government of Kisumu (CGK) under the County Government Act, and one of the mechanisms CGK seeks to advance the development of private and public assets to create and invest in joint ventures; that delivers on inclusive economic development strategy and to maximize Kisumu potential and position for investment. KLDC’s purpose is committed to creating equity and prosperity through strategic development, investments, innovative ideas and strong partnerships to accelerate Kisumu’s socio- economic diversification and global integration for sustainable development.