A farmer scares away locusts from his farm in Machakos County on January 28. PHOTO | JOSEPH KANYI
Earnings from key agricultural exports are set to recover from
last year’s slowdown, economists at a UK firm have predicted, even as
the threat of migratory locusts hangs over farmlands.
UK-based
research firm Capital Economics says conditions in the agricultural
sector are expected to rebound from last year’s delayed long rainfall
season, in part narrowing Kenya’s current account deficit further.
United
Nation’s Food & Agriculture Organisation (FAO) has warned the
locusts’ infestation threat may escalate in the coming months as swarms
which have already invaded the north-eastern and eastern parts of the
country breed.
The agency does not, however, expect the migratory pests to spread to key farmlands.
“While
this is the most severe outbreak in Kenya for 70 years, the economic
cost is likely to be limited,” Mr John Ashbourne, senior emerging
markets economist at Capital Economics, wrote in a note last Friday.
“The infestation is currently contained in the country’s thinly
populated and economically marginal northern counties, and the UN does
not expect that the bugs will spread into key crop-producing areas in
the Rift Valley. Provided that these areas are spared, the outbreak may
cause significant disruptions for local people, but should have little
effect on key export crops.”
Income from key farm
exports such as tea, horticulture and coffee dropped last year on the
back of delayed rains and reduced prices in global markets.
Latest
statistics show tea exports earnings dropped Sh23 billion or 16.43
percent, to Sh117 billion in the year through December, while coffee’s
dipped $35.66 million, or 24.56 percent, to $109.56 million (Sh11.0
billion under current rates) in the year through September 2019.
Earnings
from horticulture, which leapfrogged tea to become largest export
earner in 2018, for the nine months through September 2019 declined 8.45
percent to Sh105.97 billion.
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