Unlocking Opportunities for U.S. Agricultural Exports in Kenya: The Case for Peanuts and Value-Added Products
Kenya’s growing middle class, rapid urbanization, and modern retail expansion are driving strong demand for safe, high-quality food products. For U.S. agribusinesses, peanuts and peanut-based products stand out as a promising category and a gateway to wider East African markets.
Why Peanuts?
Peanuts are Kenya’s second-most important legume, yet domestic supply is inconsistent. Smallholder production, weak post-harvest handling, and aflatoxin contamination limit the availability of safe, quality peanuts for processors and consumers. U.S. products can help close this gap by providing:
Consistent safety and quality standards that meet Kenya’s food regulations
Value-added options such as peanut butter, roasted and flavored nuts, protein snacks, and confectionery inputs
Reliable supply to support processors, retailers, and foodservice operators
In 2023, Kenya imported $3.81 billion in agricultural and related products. Consumer-oriented foods made up $583 million of that total, yet U.S. exporters supplied only 1.3 percent of the segment. This leaves substantial room for growth.
Market Entry Considerations
Tariffs and Trade Preferences
Kenya currently benefits from the African Growth and Opportunity Act (AGOA), which grants preferential access for many U.S. agricultural products. AGOA is set to expire in September 2025. While bipartisan efforts are underway to renew it, the policy direction of the Trump administration remains uncertain. If AGOA lapses, Kenyan exports to the United States may face higher tariffs, and trade dynamics could shift in ways that affect bilateral flows in both directions. U.S. exporters should make use of the current window of favorable terms and prepare contingency plans in case the agreement is not renewed.
Distribution and Partnerships
Entering the Kenyan market successfully requires strong local partnerships. Examples include:
Bidco Africa – A leading FMCG company with extensive distribution across packaged food categories
Unga Group Plc – A major player in flour milling and nutrition products with strong retail networks
Greenfoods Agri – A specialist in pulses and nuts with wholesale and institutional clients
Twiga Foods – A tech-driven platform that links suppliers directly with urban retailers
Kenya Agricultural Commodity Exchange (KACE) – A platform for connecting bulk buyers and sellers
Consumer Channels
Modern grocery retail sales in Kenya reached $8 billion in 2023 and are projected to grow at 10 percent annually through 2027. More than 3,800 restaurants, expanding e-commerce, and vibrant informal markets all offer viable routes for market entry.
Moving Forward
Kenya is more than a stand-alone market. It serves as a strategic entry point to the East African Community’s population of over 300 million. With the right preparation, local partnerships, and targeted marketing, U.S. peanut exporters can meet existing demand and position themselves for sustained regional growth.
KCL Global works with U.S. agribusinesses to conduct market assessments, navigate compliance, and design effective go-to-market strategies in East Africa. For producers ready to expand, Kenya offers immediate opportunity and long-term potential.