Kevian Kenya, the industrial conglomerate founded by billionaire businessman Kimani Rugendo, has committed Sh300 million ($2.3 million) to a new potato seed breeding project. The investment marks a strategic upstream expansion for the company, which is best known for its flagship juice brands, Pick N Peel and Afia.
The capital injection will be directed toward the production of high-quality, certified potato seeds to address a chronic shortage that has long hampered Kenya’s agricultural productivity. By moving into the seed business, Kevian Kenya aims to secure its own supply chain for its potato processing arm, which produces French fries and crisps under the “Select Fresh” brand.
The move follows years of operational challenges faced by Kenyan processors who struggle to source consistent volumes of specific potato varieties required for industrial use. Most smallholder farmers in the country currently rely on recycled seeds from previous harvests, a practice that leads to low yields and high susceptibility to diseases. Through this investment, Kevian intends to provide contracted farmers with superior clean seeds to ensure a steady flow of raw materials for its Thika-based processing plant.
Speaking on the development, Rugendo emphasised that the investment is part of a broader vision for vertical integration within the Kenyan food system. The project will involve the establishment of greenhouses and laboratory facilities for tissue culture, allowing the company to multiply seed tubers rapidly. This technical approach is expected to reduce the time it takes for new, high-yielding varieties to reach the market, which typically takes several years through traditional breeding methods.
Addressing Kenya’s Certified Seed Deficit
The Kenyan potato sector is the second most important food crop in the country after maize, contributing significantly to food security and rural incomes. However, data from the Kenya National Bureau of Statistics and various agricultural agencies suggest that the sub-sector operates far below its potential. Current average yields stand at approximately 8 to 10 tonnes per hectare, compared to a potential of over 30 tonnes per hectare seen in more advanced agricultural markets.
One of the primary drivers of this yield gap is the limited access to certified seeds. It is estimated that less than 5% of potato farmers in Kenya use certified planting materials. By entering this space, Kevian Kenya is positioning itself as a key private-sector player alongside the Kenya Agricultural and Livestock Research Organization (KALRO), which has historically been the primary provider of seed research and development in the country.
The Sh300 million investment will facilitate the multiplication of varieties such as Shangi—the most popular variety among local consumers—as well as specialized varieties like Markies and Taurus, which are preferred by processors for their low sugar content and high dry matter. These technical attributes are essential for producing the high-quality frozen chips that Kevian supplies to the hospitality sector and retail outlets.
Rugendo’s move into the seed business is consistent with the industrialist’s history of diversifying into underserved niches. Since founding Kevian in 1992 as a bottled water company, he has expanded into fruit juices, carbonated drinks, coffee, and more recently, the vegetable processing sector. The company’s growth has been supported by various international financiers over the years, reflecting its status as a leading indigenous manufacturing entity in the East African region.
Beyond securing its own raw material needs, the project is expected to have a significant multiplier effect on the local economy. Kevian works with thousands of small-scale farmers through an out-grower model. By providing these farmers with better seeds and a guaranteed off-take market, the company is effectively de-risking the potato value chain for rural producers. This model is increasingly seen as a viable path for improving agricultural livelihoods while reducing Kenya’s reliance on imported food products.
As the project scales, the company expects to reduce the production costs associated with sourcing potatoes from fragmented markets. The ability to control the quality of the crop from the seed stage allows for better planning and more efficient factory utilization. This latest investment is currently in the implementation phase, with the first batches of laboratory-produced seeds expected to be available for planting in the coming seasons.
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