Advancing Research Evidence for Youth Employment in Agribusiness and Agro-Processing: Building Inclusive Policies and Practices for MSME Growth in Kenya

Abstract

This policy brief is based on the synthesis and analysis of Utafiti Sera Youth Employment Creation project survey data, comprehensive literature reviews spanning global, national, and county initiatives, newly generated evidence from an empirical study focusing on new youth-led Agro-based SMEs in mango, potato, and avocado value chains, and a stakeholders’ forum comprising National and County leaders, youth, business communities, academia, research institutions, NGOs, and farmers. The project is hosted by the Center for African Bio-Entrepreneurship (CABE Africa) in collaboration with the Partnership for African Social and Governance Research (PASGR). The policy brief underscores the critical role of agribusiness and agro-processing in addressing youth unemployment in Kenya, focusing on mango, potato, and avocado value chains. It identifies challenges such as gender and age disparities, limited formalization of youth-led MSMEs, inadequate access to finance and markets, and low participation in value addition. Despite their potential, youth involvement in agribusiness is hindered by insufficient skills, fragmented business environments, and lack of enabling infrastructure. The findings reveal that most youth-led enterprises operate informally, face difficulties in scaling up, and struggle to access export markets due to regulatory and logistical barriers. These challenges call for targeted interventions to promote sustainability, equity, and innovation within the sector. To increase youth participation and create jobs, the policy brief recommends improving access to finance, facilitating business formalization, and promoting ICT adoption in agribusiness. It emphasizes the need for gender-inclusive policies, capacity-building initiatives, and infrastructure investments to support value addition and market linkages. Coordination among stakeholders, including government agencies, private sector players, and civil society, is crucial to creating a supportive ecosystem. These measures aim to shift agribusiness from subsistence to a competitive, youth-driven sector, supporting Kenya’s economic growth and national development goals.