Desk Review: Advancing the Potato Value Chain and Financial Structures in Kenya, Tanzania, and Rwanda: Key Insights and Strategies

By Dr. Betty Kwoko Mgimba, for AppsValle

This initial report provides an in-depth analysis of the potato value chain in three East African nations: Kenya, Tanzania, and Rwanda. It examines the economic impact of the potato sector, identifies challenges and opportunities related to seed availability, explores financial empowerment opportunities for farmers, analyzes marketing and sourcing strategies, investigates prospects for optimization and value addition, and discusses implementation considerations.

Objective:

The objective of this report is to provide a comprehensive analysis of the potato value chain in Kenya, Tanzania, and Rwanda. The report aims to explore the economic impact and significant potential within the sector, identifying key challenges such as seed availability, productivity, and financial access, while highlighting opportunities for improvement through value addition, market expansion, and technological innovations. It seeks to offer actionable insights and strategic recommendations to enhance financial empowerment for farmers, optimize marketing strategies, and implement effective sourcing practices. Through this analysis, the report intends to foster informed decision-making that will strengthen the potato value chain in these countries, contributing to greater economic resilience and improved livelihoods for smallholder farmers.

Key Challenges and Opportunities

The potato value chain in East Africa faces several challenges, including:

• Low Productivity: Despite the potential for high yields, potato productivity in Kenya, Tanzania, and Rwanda remains significantly below average due to factors such as limited access to quality seed, poor agricultural practices, and inadequate access to inputs like fertilizers¹.
• Seed Availability: Access to high-quality seed potatoes is crucial for improving yields and ensuring the sustainability of the potato value chain. However, seed availability remains a challenge due to factors such as limited production of foundation seed, the perishable nature of seed potatoes, and financial constraints⁴.
• Financial Access: Many potato farmers, particularly smallholders, face challenges in accessing financial services and products from mainstream institutions, hindering their ability to invest in improved inputs, technologies, and risk management strategies⁴.
• Market Access: Poor infrastructure, limited market information, and inefficient marketing channels hinder farmers’ ability to access profitable markets and receive fair prices for their produce⁵.
• Post-Harvest Losses: Significant post-harvest losses occur due to inadequate storage facilities, improper handling techniques, and limited processing capacity, reducing the economic benefits of potato production⁶.

However, the potato value chain also presents significant opportunities:

• Increased Productivity: There is substantial potential to increase potato production by addressing the yield gap through improved agricultural practices, access to quality seed and inputs, and adoption of climate-smart technologies¹.
• Value Addition: Processing potatoes into value-added products such as chips, crisps, flour, and starch can create new market opportunities, increase profitability for farmers, and generate employment⁶.
• Regional Trade: Expanding regional trade in potato products can enhance market access for farmers and promote economic integration among East African countries⁷.
• Technological Advancements: Innovations in seed production, such as aeroponics and rooted apical cuttings, can improve seed quality and availability⁸.
• Public-Private Partnerships: Collaborative efforts between government agencies, research institutions, and private sector actors can leverage resources and expertise to address challenges and promote sustainable growth of the potato value chain⁹.

Economic Impact

Potatoes are a crucial food security crop and a significant source of income for smallholder farmers in Kenya, Tanzania, and Rwanda. The potato value chain contributes substantially to these countries’ economies, both locally and regionally¹⁰.

Local Impact

In Kenya, potato farming is concentrated in the highlands, with over 800,000 farmers cultivating the crop¹⁰. Potato production provides employment and income opportunities for over 70% of rural dwellers¹¹. Smallholder producers face challenges such as low productivity due to low adoption of recommended agronomic practices, unfavorable weather, high disease prevalence, inefficient marketing chains, and poor infrastructure¹. In certain regions, such as Nakuru and Meru counties, potato farming has led to increased household incomes and improved livelihoods¹². The increasing per capita consumption of potatoes in Kenya indicates a growing market¹³. However, a significant amount of produce is lost each year, representing a considerable economic loss¹⁴. The growing processing sub-sector in Kenya offers opportunities for business-to-business linkages and value addition¹⁵.

In Tanzania, the Southern Highlands are the primary potato-producing regions, accounting for 70-80% of the national output¹⁶. Potato farming provides income and food security in these regions, with significant potential for growth¹⁷. Factors such as selling volumes and selling price significantly influence potato profitability¹⁸. Seed potato is a key factor for quality and productivity¹⁹. The flow of potatoes from production areas to major urban centers in Tanzania and neighboring countries contributes to regional trade⁷.

In Rwanda, potato cultivation is concentrated in the Northern Province, where it generates more than half the annual household income²⁰. The crop is a major source of food and income, with an estimated annual consumption of 145 kg per capita²¹. The COVID-19 pandemic and associated mobility restrictions have impacted potato farmers in Rwanda, affecting labor availability and market access²². The ‘Increased potato value chain efficiency in Great Lakes region’ project aims to improve the resilience and income of potato farming families²³. Temperature changes are influencing potato growing conditions in Rwanda, with a shift towards cooler and wetter conditions in higher elevation areas²⁴. The African Roots and Tubers project has successfully doubled productivity and secured USD 430,000 in loans for farmers²⁵.

Regional Impact

The potato value chain has a strong multiplier effect on the economies of Kenya, Tanzania, and Rwanda. It indirectly employs millions of people in various roles, including researchers, extension agents, seed inspectors, transporters, market agents, processors, and retailers¹. The industry also contributes significantly to these countries’ GDPs¹⁰.

Yield Gap: A significant yield gap exists in all three countries, highlighting the potential for increasing potato production through improved practices and access to quality inputs¹. This yield gap has implications for food security, economic growth, and the livelihoods of farmers. Closing the yield gap requires a multi-pronged approach that addresses challenges related to seed quality, input access, and agricultural practices.

In Kenya, the potato sector is valued at KES 46 billion per annum at the consumer level¹⁰. The sector is experiencing growth, driven by innovations and increasing demand²⁶. Kenya has achieved self-sufficiency in potato production and is projected to have surplus production in the coming years¹. However, the financial assessment of potato damage and loss in Kenya is valued at KES 12.9 billion annually, emphasizing the need for optimization strategies¹⁴.

In Tanzania, the annual production of potatoes is worth about KSh50 billion¹. The sector has the potential to contribute to achieving a 6% annual growth rate and reducing rural poverty by 2025²⁷.

In Rwanda, potato production has increased significantly in recent years, contributing to food security and economic growth²⁰. The government is actively involved in streamlining the potato value chain and regulating prices to ensure fair returns for farmers²⁸.

Seed Availability

Access to quality seed potatoes is crucial for improving potato yields and ensuring the sustainability of the potato value chain. However, seed availability remains a challenge in Kenya, Tanzania, and Rwanda.

Gaps in Seed Availability

In Kenya, despite the development and release of several potato seed varieties, farmers still struggle to access them⁴. The lack of foundation seed, the perishable nature of seed potatoes, and financial constraints hinder seed production and distribution⁴. Financial constraints have also hindered the Kenya Agricultural and Livestock Research Organization (KALRO) and the Agricultural Development Corporation (ADC) in fulfilling their seed production mandates⁴. Only 2% of smallholder farmers use certified seeds²⁹. Farmers often rely on farm-saved seeds, which can be infected with diseases and pests, leading to lower yields³⁰. Specific seed potato varieties, such as those preferred for processing, are not readily available to Kenyan farmers³¹. Seed companies are concentrated in major towns like Nairobi, Kiambu, Nakuru, Meru, Kitale, Nyandarua, and Taita Taveta, limiting access for farmers in other regions²⁹.

In Tanzania, similar challenges exist. Farmers often use low-quality seed due to limited access to quality seed and high costs³². Poor storage facilities further affect the quality of available seed³². The average seed rate used by farmers is significantly lower than the recommended rate³². Replenishing soil nutrients after potato harvesting is crucial for sustainable production, but many smallholder farmers lack the resources to do so². This, coupled with limited access to fertilizers, contributes to low yields². The average seeding rate applied by farmers varies, and factors such as seed size and planting methods influence seeding practices³³. Knowledge gaps in potato technology adoption among farmers hinder the effective utilization of improved seed and best practices³⁴.

In Rwanda, the use of farm-saved seed is prevalent, with only around 5% of farmers using improved seed as of 2022³. This contributes to lower yields and greater pest and disease pressure³⁵. Seed multiplication is a complex and costly operation, limiting the availability and affordability of high-quality seed³. Access to fertilizers is also limited due to strict government regulations³⁶. The yield gap, which is the difference between potential yield and average farmer’s yield, is substantial, highlighting the potential for yield improvement³. The availability of mini-tubers seed production systems is limited, further constraining seed access³⁷.

Global Context:

https://www.mdpi.com/2071-1050/14/24/16703

Source: ³⁸

Informal Seed System:

The informal seed system dominates potato seed production and distribution in East Africa. While this system provides farmers with readily available and affordable seed, it also has limitations³. The quality of seed in the informal system is often low, leading to lower yields and increased disease pressure. Furthermore, the informal system may not provide access to improved varieties with desirable traits such as disease resistance and high yield potential. Strategies to bridge the gap between formal and informal seed systems are crucial for improving seed quality and availability.

Potential Solutions

Several solutions can be implemented to bridge the gaps in seed availability:

• Improved seed production and distribution systems: Investing in early generation seed technologies, such as aeroponics and rooted apical cuttings, can increase the production of high-quality seed potatoes⁸. Decentralizing seed production to the sub-county level can improve access for farmers⁴⁰. In Rwanda, One Acre Fund’s seed program operates in three districts, providing an example of seed program implementation³⁵.
• Quality Declared Seed (QDS) systems: QDS systems can bridge the gap between formal and informal seed systems⁴¹. These systems involve quality control measures, decentralized seed production, and farmer participation.
• Public-private partnerships: Collaborations between government agencies, research institutions, and private seed companies can enhance seed production and distribution⁴⁰. In Kenya, formalizing the informal potato seed system is crucial for attracting more investment and improving seed access⁴⁰. The Kenya – The Netherlands potato project has demonstrated the potential of international collaboration in bridging the potato variety gap⁴². Irrigation plays a vital role in seed potato production, enabling off-season production and ensuring timely availability of seed⁴³.
• Farmer training and awareness: Educating farmers about the benefits of using quality seed and providing training on seed production and storage can increase the adoption of improved seed. In Tanzania, the use of demo fields and farmer study groups has proven effective in promoting knowledge transfer⁴⁴. Agricultural & Marketing Cooperatives Societies (AMCOS) play a crucial role in promoting seed access and collective bargaining power for farmers⁴⁴.
• Financial support: Providing financial assistance to seed producers and farmers can improve access to quality seed. In Tanzania, collaboration between the government and the Netherlands aims to develop a thriving seed potato ecosystem⁴⁵.

Regional Challenges:

Seed potato producers in East Africa face challenges such as small farm sizes and Potato Cyst Nematode (PCN) infestation, which limit seed production capacity⁴⁶. Gender dynamics also play a role in seed systems, with women often responsible for household garden systems and seed management⁴⁷. Addressing these regional challenges requires collaborative efforts and knowledge sharing among countries.

Financial Empowerment

Financial empowerment is crucial for potato farmers to invest in improved inputs, technologies, and risk management strategies. Access to credit, microfinance programs, and agricultural insurance can empower farmers and enhance their livelihoods⁴⁸.

Financial Systems

In Kenya, various financial systems can empower potato farmers:

• Microfinance programs: Organizations like Mavuno Zaidi™ provide access to microfinance for potato farmers⁴⁸.
• Partnerships with financial institutions: Agrico PSA collaborates with Equity Bank Kenya to provide affordable microcredit to farmers⁴⁸.
• Digital platforms: Platforms like M-kulima facilitate communication and transactions between farmers and financial institutions⁴⁹. i-Procure offers technology-enabled solutions for agricultural stakeholders, including access to finance⁴⁹.
• Agricultural insurance: Insurance products can protect farmers from risks associated with weather and market fluctuations.

Success Stories:

Several farmers in Kenya have benefited from financial empowerment initiatives. For example, Sammy, a former dairy farmer, diversified into potato seed production and invested in irrigation, increasing his income significantly⁵⁰. Margaret, another farmer, adopted certified seed and improved her potato storage, leading to increased yields and income⁵⁰. FreshCrop Limited has implemented a decentralized hub site model to support smallholder farmers in Kenya, providing access to certified seeds, inputs, financing, and market linkages⁵¹. Higher incomes empower farmers to invest in technology and engage in digital marketing, further enhancing their livelihoods⁵².

In Tanzania, financial institutions like CRDB provide loans to potato farmers⁵³. The Feed the Future Tanzania Agri-Finance project enables increased lending to agri-businesses and enterprises, improving farmers’ access to finance⁵⁴. The World Bank also provides financing to enhance agricultural productivity and resilience⁵⁵. Efforts are underway to build resilience of smallholder potato farming households in Tanzania through improved food security and income⁵⁶. The Overseas Private Investment Corporation (OPIC) supports projects that address global hunger and food security, including those focused on improving agricultural yields and access to finance⁵⁷.

In Rwanda, access to finance remains a challenge for many farmers, with financial institutions hesitant to provide loans due to perceived risks associated with agriculture⁵⁸. However, initiatives like STARLIT provide irrigation systems and financial support to farmers⁵⁹. The government is working to improve access to finance for farmers through various programs. Key financial sector foundations in Rwanda include a credit registry and secured transactions registry, which contribute to a more stable financial landscape⁶⁰. Efforts are underway to identify and release new potato varieties suitable for various purposes, potentially increasing income opportunities for farmers⁶¹. Cordaid supports Rwandan farmers by providing access to data, equipment, and loans⁵⁹.

Financial Access Comparison:

The level of financial access for potato farmers varies across the three countries. Kenya appears to have a more developed ecosystem of financial services and products tailored to the needs of potato farmers, including microfinance programs, partnerships with financial institutions, and digital platforms. Tanzania also has initiatives in place to improve access to finance, with support from both local and international institutions. However, Rwanda faces greater challenges in terms of financial access, with farmers struggling to secure loans from traditional financial institutions.

Recommendations

To further empower potato farmers, the following recommendations can be considered:

• Increased access to credit: Financial institutions should develop tailored loan products for potato farmers, considering the specific needs and risks associated with potato production. In Rwanda, facilitating the granting of loans by accelerating the release period and lowering interest rates can improve access to credit⁶².
• Expansion of microfinance programs: Microfinance institutions should expand their reach to serve more potato farmers, particularly women and youth.
• Development of innovative financial products: Innovative financial products, such as index-based insurance and weather derivatives, can help farmers manage risks and protect their investments.
• Financial literacy training: Providing farmers with financial literacy training can empower them to make informed financial decisions and manage their resources effectively.

Marketing and Sourcing

Effective marketing and sourcing strategies are essential for ensuring fair prices for farmers and efficient distribution of potatoes to consumers¹⁵.

Current Marketing Strategies

In Kenya, potato marketing occurs through various channels, including informal markets, supermarkets, and processing companies¹⁵. Direct marketing to large buyers, such as fast-food chains and supermarkets, can provide better prices for farmers⁶³. Cooperatives and government programs can also facilitate access to higher-paying markets⁶³.

Estimated Costs and Potential Earnings:

Item	Quantity	Amount in Ksh (Estimate)
Land (lease)	1 acre/year	10,000 (may vary)
Seedlings	16 @ 4200	67,200
Soil Test	–	5,000
Agro Chemicals	8 liters	8,000
Transport		5,000
Labor	5-man days × 5 × 300	60,000
Fertilizer: D.A.P or NPK (9:23:24)	50Kg × 4 – @ 7,500	30,000
Top Dressing: e.g. NPK (22:6:12) or NPK (17:17:17)	25Kg × 8 – @ 5,000	40,000
Miscellaneous		25,000
Total		250,200

With proper management, a one-acre potato farm can yield upwards of 14 tonnes. At a conservative farmgate price of Ksh 3500 per 50KG bag, potential sales revenue can reach Ksh 980,000⁶⁴.

A program in Kenya has recruited and trained 2855 farmers on climate-smart agriculture and good agricultural practices¹². Transport and logistics services are key enablers to the potato value chain, with poor road networks posing challenges for farmers in accessing markets and inputs⁵.

In Tanzania, the majority of potatoes are sold in urban centers, with Dar es Salaam being the leading destination⁶⁵. The SAGCOT Strategic Potato Partnership promotes commercialization and market access for farmers⁶⁶. Key interventions implemented to improve the potato value chain in Tanzania include promoting improved varieties, supporting farmer groups for collective marketing and input access, and ensuring seed quality through TOSCI certification⁶⁷. The CD-PIT project in Tanzania aims to improve knowledge transfer in the potato value chain, focusing on aspects such as cultivation, preservation, marketing, and processing⁴⁴.

Regional Comparison:

Country	Production (tonnes)	Area Harvested (hectares)	Yield (t/ha)
Tanzania	1,013,154	120,184	8.43
Kenya	1,787,498	209,770	8.36
Rwanda	921,630	121,630	7.58
Uganda	242,344	37,848	6.45

Source: ⁶⁶

The marketing channel approach used in Tanzania focuses on firms’ selling strategies to satisfy consumer preferences⁶⁸. This approach widens marketing choices for farmers and can lead to better prices and higher gross margins. Efforts are underway to create the Potato Council of Tanzania (PCT) to champion coordination and communication among stakeholders in the potato industry⁶⁵.

In Rwanda, potato marketing channels include brokers, open-air markets, and collection centers⁶⁹. The government has implemented reforms to improve market access and income distribution for farmers⁶⁹. The government also plays a role in regulating potato prices to ensure fair returns for farmers and protect consumers²⁸. The Potato Service Training and Innovation Center (Potato STIC) focuses on innovation and training in the potato sector, aiming to transition from subsistence farming to a commercially viable enterprise⁷⁰. Rwanda aims to increase the harvest of key crops, including potatoes, by 50% to satisfy local market demand⁷¹.

Marketing Strategies Comparison:

The three countries employ different marketing and sourcing strategies. Kenya has a more diversified marketing system, with farmers selling their produce through various channels, including informal markets, supermarkets, and processing companies. Tanzania focuses on supplying major urban centers and neighboring countries, with efforts to improve market access for farmers through initiatives like the SAGCOT Strategic Potato Partnership. Rwanda has implemented market reforms and government regulations to improve market access and income distribution for farmers.

Potential Improvements

Several improvements can be made to sourcing and distribution systems:

• Infrastructure development: Investing in road networks and storage facilities can improve market access and reduce post-harvest losses.
• Market information systems: Providing farmers with timely and accurate market information can help them make informed decisions about pricing and marketing their produce.
• Contract farming: Promoting contract farming arrangements between farmers and buyers can ensure stable prices and market access.
• Value chain coordination: Strengthening coordination among value chain actors can improve efficiency and reduce transaction costs.
• Branding and marketing: Developing regional brands and promoting potato products can increase demand and market access.

In Kenya, the Kenya Sustainable Potato Initiative (KSPI) aims to improve potato productivity and marketing in several counties⁷². The project focuses on building inclusive and structured input and output markets, improving access to financial services and trade opportunities, and enhancing the enabling environment for potato production. Various actors are involved in the potato value chain in Kenya, including input suppliers, processors, and research institutions⁷³. Value addition is crucial for realizing the full potential of potatoes in Kenya, with opportunities for processing into various products and creating new market opportunities⁷⁴.

In Tanzania, SAGCOT has introduced modern tilling tractors to potato farmers in its pilot study areas to increase yields and reduce labor costs⁷⁵. Tanzania has achieved significant progress in potato research, leading to the release of improved varieties with high yield potential and disease resistance⁷⁶. The use of drones to gather crop data is also being explored in East Africa⁷⁶. Analyzing the relative benefits obtained by different players in the potato marketing chain can provide insights into the distribution of benefits and identify areas for improvement¹⁸.

Regional Seed System Challenges:

EAC partner states face challenges in seed potato production and distribution, with co-existing formal and informal seed systems⁷⁷. Only a small percentage of farmers access seed from specialized seed producers, while the majority rely on the informal sector. Addressing these challenges requires regional collaboration and investment in seed production and distribution infrastructure.

In Rwanda, seed multipliers face challenges in meeting farmers’ demands for quality seed due to the long process and high costs involved in seed production⁷⁸. The release of 11 new potato varieties in Rwanda has the potential to improve yields and provide farmers with a wider range of choices⁷⁹. Rwanda’s central location offers potential for it to become a distribution hub for eastern and central Africa⁸⁰. Integrating farmers into potato breeding programs can enhance the development of varieties that meet farmers’ needs and preferences³⁸.

Optimization and Value Addition

Optimizing the potato value chain and exploring value addition opportunities can enhance the economic benefits of potato production and reduce post-harvest losses⁶.

Optimization Strategies

Several strategies can be implemented to optimize the potato value chain:

• Reducing post-harvest losses: Improving storage facilities, promoting proper handling techniques, and investing in processing technologies can reduce post-harvest losses⁶. In Kenya, the global market for frozen French fries presents a significant opportunity for value addition and export⁶.
• Improving seed quality: Access to high-quality seed potatoes can increase yields and reduce disease pressure. In Kenya, the importance of quality planting materials for improving potato productivity is crucial⁸². Disease-free seed potatoes and improved cultivation techniques can significantly increase yields¹¹.
• Promoting good agricultural practices: Training farmers on good agricultural practices can improve productivity and reduce environmental impact.
• Strengthening farmer organizations: Farmer organizations can facilitate collective marketing, input access, and knowledge sharing.
• Improving irrigation infrastructure: Expanding irrigation infrastructure can enable year-round farming and increase yields⁸³.

In Tanzania, establishing quality control and certification schemes for seed potatoes is essential to improve seed quality and reduce disease spread¹⁹. Strategic interventions to increase potato productivity include improving access to high-quality extension services and promoting the use of suitable potato varieties for processing¹. Smallholder potato farmers in Tanzania utilize on-farm risk management strategies to improve their enterprise performance⁸⁴.

In Rwanda, strengthening the potato value chain has been approached through four key strategies: developing hardware capacity of seed potato suppliers and off-takers, increasing local teams from value chain actors, training farmers and cooperatives to improve cultivation techniques and business skills, and linking value chain actors⁸⁵.

Value Addition Opportunities

Value addition can significantly increase the value of potato products and create new market opportunities⁶. Some potential value addition opportunities include:

• Processing potatoes into chips, crisps, flour, and French fries: Processing can increase shelf life, open up new markets, and create employment opportunities⁶. In Kenya, specific potato varieties, such as Asante, are suitable for processing⁸⁶.
• Developing potato-based convenience foods: Creating ready-to-eat potato products can cater to the growing demand for convenience foods.
• Producing potato starch and bioplastics: Utilizing potato starch for industrial applications can diversify the potato value chain.

In Kenya, potato farmers face challenges due to seed bottlenecks and diminished yields, highlighting the need for value addition to improve income opportunities⁵⁰. Potato production has the potential to contribute significantly to food security and incomes among Kenyan smallholders⁸⁷. The market opportunity in potato seeds and main inputs in Kenya is valued at USD 75 million, representing a significant investment opportunity⁵.

In Tanzania, the SAGCOT Centre has played a crucial role in recognizing the potential of the potato value chain¹⁷. However, the sector faces challenges such as pests and diseases, seed quality, and market access, which need to be addressed to realize the full potential of value addition⁶⁷.

In Rwanda, potential innovation opportunities for increased potato production include improving farm-level productivity, introducing processing of potatoes, and stabilizing farm prices through appropriate business models⁸⁸. Potatoes are an important food security crop in East Africa, and value addition can further enhance their contribution to food security and economic growth²⁰. Processing projects are supported in Rwanda to improve market access for potato farmers, with efforts to link smallholder cooperatives to processors⁸⁹.

Regional Value Chains:

There is potential for developing regional value chains and trade in potato products among Kenya, Tanzania, and Rwanda⁷. This can enhance market access for farmers, promote economic integration, and improve food security in the region. Collaboration among countries in areas such as research and development, technology transfer, and market information sharing can facilitate the development of regional value chains.

Implementation

Implementing the research findings and recommendations requires a collaborative approach involving various stakeholders.

Partnerships

Partnerships with government agencies, NGOs, and private sector actors are crucial for successful implementation⁹⁰. Government agencies can provide policy support, infrastructure development, and extension services. NGOs can contribute to farmer training, capacity building, and market access initiatives. Private sector actors can invest in processing technologies, marketing, and distribution systems. In Kenya, the Potato Value Chain Capacity Building Project (PCB) is an example of a successful partnership that has increased the use of certified seed and improved collaboration between stakeholders⁹.

Implementation Plan

A comprehensive implementation plan should include the following elements:

• Clear objectives and targets: Define specific objectives and targets for each area of intervention.
• Timeline and budget: Develop a realistic timeline and budget for implementation.
• Monitoring and evaluation framework: Establish a system for monitoring progress and evaluating the impact of interventions.
• Capacity building: Invest in capacity building for farmers, extension agents, and other value chain actors.
• Knowledge sharing and dissemination: Promote knowledge sharing and dissemination of best practices. The PCB project in Kenya utilizes online platforms to disseminate success stories and project outcomes⁹.

Policy and Regulations:

Government policies and regulations play a crucial role in shaping the potato value chain²⁸. Supportive policies that promote investment in the sector, facilitate access to finance, and regulate market practices are essential for sustainable growth. Policy coherence and coordination among different government agencies are also crucial for effective implementation.

In Kenya, the adoption of the national potato policy in 2019, which stipulated the enforcement of 50kg bags and pricing in kilograms, has helped regulate the sector and protect farmers from exploitation¹². Production systems based on importing and multiplying high-quality seed potatoes have proven successful in Kenya⁹¹.

Proposed Business Models for Kenya:

Business Model	Description	Target Market
Certified seed potato production, multiplication, and distribution	Producing and distributing high-quality seed potatoes to farmers	Smallholder and commercial farmers
Crisps for the local consumer market	Processing potatoes into crisps for local consumption	Consumers in Kenya
Fresh-cut chips for the hotel and restaurant industry	Supplying fresh-cut chips to hotels and restaurants	Hotels and restaurants in Kenya
Frozen chips for consumers, hotels, and restaurants	Processing and distributing frozen chips	Consumers, hotels, and restaurants in Kenya
Mechanized nucleus potato farmers producing for processors	Establishing nucleus farms with mechanized production for supplying processors	Potato processors in Kenya
Crisps processing line	Setting up a crisps processing line	Snack food industry in Kenya

Source: ¹⁵

In Tanzania, research on rhizobacteria associated with potato has shown potential for developing biofertilizers, contributing to sustainable agriculture⁹². A roadmap for investment in the seed potato value chain in eastern Africa provides a regional perspective on investment opportunities⁹³.

In Rwanda, the agriculture value chain consists of three key parts: actors, linkages, and the support environment⁹⁴. Understanding these components is crucial for effective implementation of interventions.

Conclusion

The potato value chain plays a vital role in the economies of Kenya, Tanzania, and Rwanda. It provides food security, income, and employment opportunities for millions of people in these countries. However, the sector faces challenges related to seed availability, financial access, market access, and post-harvest losses. Addressing these challenges requires a multi-pronged approach that involves collaboration among various stakeholders, including government agencies, research institutions, NGOs, and private sector actors.

By investing in improved seed production and distribution systems, promoting financial empowerment for farmers, strengthening marketing and sourcing strategies, optimizing the value chain, and exploring value addition opportunities, Kenya, Tanzania, and Rwanda can unlock the full potential of their potato sectors and contribute to sustainable economic growth and improved livelihoods for farmers.

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