Professional Documents
Culture Documents
Kenya: The Background
! Largest economy in East Africa ! 75% of labor force contributed
! Population: 34.7 million 16.3% of GDP and 67% of
! Real growth rate: 5.8% foreign exchange earning
! Purchasing Power Parity: US$! Only 8% of the land is arable
1100 ! Major crops - coffee, tea,
! Unemployment: 40% cotton, sugar cane, potatoes,
tobacco, wheat, peanuts and
! Human Development Index: sesame
Rank 152 out of 177
! Small scale farmers ʹ 75% of
total agricultural production;
they lived on subsistence
agriculture
Existing Business Models
Large government-owned parastatals
: distributed agricultural commodities
: forced farmers to sell their produce at pre-set and often rock-bottom
prices
: farmers were reimbursed 8to 12 months later
Cooperative ventures
: produced and marketed
: commodities such as tea, coffee and milk, on behalf of their members
: Corruption, mismanagement, politics
Upstream
Expansion
Horizontal
Expansion
Downstream Expansion
! Product Diversification
1. Introducing Flavored Honey variants ʹ to cater to
urban, high income buyers