CONTRACT FARMING URGED AS KEY TO UNLOCK MARKETS FOR SMALLHOLDER FARMERS IN KENYA

Panelists share insights on contract farming, certification, and market opportunities for smallholder farmers during the “Empowering Market Opportunities in Contract Farming” conference at the Sarit Expo Centre in Nairobi.

By: Gladys K 

Stakeholders at the International Conference on Contract Farming (ICCF) in Nairobi have called for urgent reforms to Kenya’s certification and standards framework, which they say continues to hinder the inclusion of smallholder farmers in domestic and international markets. The conference, themed “Empowering Market Opportunities Through Contract Farming,” brought together players from government, development agencies, and the private sector to explore how contract-based agricultural systems can boost value chain integration.

Peter Owoko, Director of Policy State Department for Agriculture on behalf of Principal Secretary for Agriculture, Paul Kiprono Rono, addressed the gathering with candid remarks on challenges facing smallholders as they navigate market access systems designed without their needs in mind.

“If you are to market tea, you must get so many certifications and each certification you must pay for. For a smallholder farmer, this makes it uncompetitive,” said PS Rono. “We must facilitate trade and not become an obstacle. The bill that’s coming up should address this.”

Rono underscored a structural mismatch: while Kenya’s agricultural sector is dominated by smallholder farmers accounting for up to 80% of total production access to finance, markets, and state-run certification processes remains limited for them. He cautioned that while the market exists, “It is you who does not have the volumes.”

The PS also spoke to the importance of synchronizing the production approaches from seed variety to harvest timing to ensure consistency in produce quality. Using rice as an example, he noted the difficulty of aggregating produce from mixed varieties under contract.

Conference sessions further revealed that compliance challenges are not just a matter of certification costs but include unrealistic standards, poorly designed regulatory processes, and a lack of training at grassroots levels. Experts called for a shift from a punitive to a supportive framework.

James Moribi, Managing Director at Control Union Kenya, highlighted certification’s role in market assurance:
“Certification is about the whole production system. It builds trust between farmers and consumers  but farmers must be part of this process and not just subjects of it.”

However, Anthony Mwangi, CEO of Visible Industries, argued that certification systems were never designed for the farmers:
"I don't think the standards are for the farmers. They were not designed for the farmers. They were designed for the regulator and the consumer. The primary producer has been left to their own devices."

Panelists called for integrating extension services into the certification and standards regime. Lynette from Grain Council emphasized that awareness is key to compliance:
“If you have the awareness of the standards, it becomes very easy for you as a farmer to comply. If not, the system becomes a barrier.”

Advocating inclusivity, Jane Musindi of ASNET added:
"All standards have a reason for why they’re there. The players need to understand the why before they comply. If we involve everybody  farmers, regulators, buyers it becomes easier. Certification only becomes necessary when the market demands it."

Rono echoed these sentiments and challenged stakeholders to ensure farmers are not just producers but strategic value-chain partners:
“Contract farming becomes a very important instrument in assuring smallholders that they will always find markets for their produce. It assures them of their livelihood, reduces costs, and improves efficiencies.”

He urged innovation in contracts to enhance fairness and inclusivity, particularly for women and youth who remain key actors in the sector. Discussions also pointed toward the role of technology and financial tools in mainstreaming smallholders into profitable agribusiness ecosystems.

The conference concluded with a collective call to move beyond theory and into action, seeking to transform contract farming into a realistic and sustainable model for Kenyan agriculture.

“As we explore market opportunities, let us remember that the goal is not only to grow markets but also to grow the people to empower farmers, transform rural livelihoods, and build a sustainable agricultural sector that thrives in today’s global economy,” said Rono in closing remarks.