May 28th, 2026

Kenya’s persistent shortfalls in every day food items such as eggs, milk, fish and honey present immediate, commercially viable entry points for rural youth, but unlocking these opportunities requires a shift in how finance is designed for agri-food systems as well as investment in capacity development of youth led agri-enterprises.

This is according to a new Food Systems Analysis commissioned by FSD Kenya through the Green Finance for Youth Employment (GFYE) project, examining five priority value chains across 14 counties. The value chains analysed in the study were dairy, horticulture, poultry, fisheries and aquaculture, and apiculture.

The analysis reveals persistent supply gaps across all these five value chains, documenting Kenya’s annual deficit of 5 billion eggs; 6.5 to 7.5 billion litres of milk; 340,000 metric tonnes of fish; and 5,500 metric tonnes of honey. These shortfalls are largely met through imports, signalling immediate market opportunities for domestic production by youth-led enterprises.

Drawing on data from 1,210 agri-enterprises, 88 key informant interviews and 28 focus group discussions, the study finds that viable business models already exist, but uptake is limited by a financial system misaligned with how agri-enterprises generate revenue. More than half (53 per cent) of agri-enterprises cited a lack of collateral as the main barrier to credit; 43 per cent cited irregular income; and 16 per cent cited weak financial records. Loan products typically carry rigid repayment schedules and no grace periods, and make little use of alternative data, excluding otherwise viable enterprises. Persons with disabilities were entirely absent from the sampled enterprises, with 70 per cent of those consulted citing workplaces that did not accommodate their needs, an exclusion the study identifies as a barrier the financial sector must deliberately design against.

The study also highlights the role of green technologies in improving enterprise viability and reducing costs. In poultry farming, for example, substituting conventional feed with black soldier fly protein and grid power with solar heating reduces monthly costs by 42 per cent and more than doubles returns on investment from 108 per cent to 260 per cent over a 16-month cycle. Demand for green technologies is already established across value chains, including solar-powered cold chain equipment, solar powered incubators, modern hives and irrigation equipment. What is missing, according to the study, is the productive asset finance structured around agri-enterprise cash flows.

“Across Africa, there is growing recognition that young people are central to the transformation of our food systems and rural economies. Under IFAD14, we are deepening our focus on creating opportunities for young people through climate-resilient investments and support to the ‘first mile’ of food systems, where inclusive growth, innovation and sustainable livelihoods can take root. “Said Mariatu Kamara, IFAD Kenya Country Director.

To support the youth act on the opportunities the report identifies and convert these opportunities into enterprise and jobs, the report recommends three main interventions: aligning finance to agricultural cash flows through seasonal repayment structures and grace periods; expanding credit access by using alternative data e.g. mobile money transactions, cooperative delivery records and digital platform data, as a substitute for collateral; and strengthening market linkages through structured offtake agreements that improve bankability.

“Kenya’s food deficits are not only a food-security challenge; they are a youth-employment opportunity, and green finance is the bridge between the two,” said Rashmi Pillai, Chief Executive Officer, FSD Kenya. “This analysis shows where the commercial opportunities sit. The work now is to redesign finance and delivery systems around the seasonal, informal and increasingly technology-enabled realities of young agri-enterprises, and to build the skills that let young people take these opportunities up.”

The Food Systems Analysis report provides evidence for coordinated investment across financial institutions, market actors and policymakers to support inclusive, climate-aligned growth in Kenya’s agri-food systems.

Download the full Green finance for youth employment – A food systems analysis of 14 counties in Kenya report here. 

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