The UAE-based agribusiness venture Al Dahra is in negotiations with the Kenyan government for a potential lease of 200,000 acres of farmland in the country’s Coast region, marking a significant step in the development of large-scale agricultural projects.
According to a Bloomberg report, the two parties are aiming to finalize an agreement early next year, with Al Dahra poised to invest Ksh 103.4 billion (US$800 million) in irrigation development for the farmland, as confirmed by Kenya’s Principal Secretary for Irrigation.
“We are still negotiating, but we might soon sign a memorandum of understanding,” Agriculture Principal Secretary Ephantus Kimotho told Bloomberg, indicating the deal could be finalized shortly.
Al Dahra, in which Abu Dhabi sovereign wealth fund ADQ holds a 50 per cent stake, operates over 400,000 acres of farmland across the UAE and other international markets, including Romania, Serbia, North America, Egypt, Namibia, and Morocco. The company specializes in producing a range of agricultural products, with a particular focus on grains, forage, and animal feed.
In September, Kimotho and Kenya’s Ambassador to Egypt, Fred Outa, visited Al Dahra’s farms in Aswan, Egypt, to study its farming practices and advanced tilling technologies, further solidifying their interest in establishing a partnership.
Kenya’s Push for Agricultural Investment
Kenya has been actively courting foreign investors to boost food production, particularly in the country’s arid and semi-arid lands (ASAL), which make up 80 per cent of its landmass. Earlier this year, former Agriculture PS Paul Rono emphasized the potential of these regions, which, though water-scarce, are fertile and capable of supporting large-scale food production.
“We are fostering an environment that allows the private sector and foreign investors to invest in agriculture. This will bolster food security, generate employment, and augment income in these regions,” Rono stated at the time.
As part of this push, the Kenyan government leased 200,000 hectares of land in 2023 to increase food production and support economic development in the arid regions.
Legal Challenges and Criticism
However, Al Dahra’s expansion efforts abroad have not been without controversy. In 2011, the company faced legal challenges in Egypt, where the Egyptian State Council, an administrative court, ruled that a government body had improperly granted Al Dahra the right to cultivate 43,000 hectares of land in the Toshka region. The contracts were awarded during the presidency of Hosni Mubarak, whose government was later ousted following mass protests. Critics have branded Al Dahra’s international land acquisitions as “land grabs,” raising concerns about the impact on local communities and the environment.
Despite the legal challenges, Al Dahra remains a key player in global agribusiness, and its potential investment in Kenya signals the country’s growing appeal as a destination for foreign agricultural investment.
Future Prospects
As the negotiations with the Kenyan government progress, the deal with Al Dahra is expected to enhance food production in Kenya, particularly in the Coast region, and to create jobs and other economic opportunities. The introduction of advanced irrigation techniques and farming technologies is also expected to boost the productivity of Kenya’s agriculture sector.
Should the deal proceed, it could mark the beginning of a new era of agricultural development in Kenya, with significant foreign investment playing a critical role in addressing food security challenges and fostering economic growth.
