Sustainable Urban Economic Development (SUED) Programme Thought Piece: Catalysing Agribusiness Expansion into Kenya’s Intermediary Cities through SUED Context: Unlocking Urban Economic Potential Kenya’s intermediary cities are becoming critical engines of economic transformation, yet the private sector investment has often been limited due to infrastructure gaps, market inefficiencies, and perceived risks. The UK Government funded Sustainable Urban Economic Development (SUED) Programme has catalysed private investment into these geographies by combining prefeasibility studies, investor outreach, and seed funding. Two case studies demonstrate SUED’s catalytic role: Avocado Avenue’s Avocado Oil Processing Facility in Kerugoya-Kutus (Kirinyaga County) and Fresh Products Limited’s (TFP) Avocado Packhouse in Eldoret (Uasin Gishu County). Both projects highlight how SUED enabled agribusinesses to expand into new geographies, creating urban-rural value chains, generating jobs, and positioning municipalities as competitive agribusiness hubs. SUED’s strategic interventions in Eldoret and Kerugoya-Kutus Municipalities have demonstrated how targeted support can unlock agribusiness potential in intermediary cities. These projects were not just about infrastructure — they were about vision, timing, and catalytic investment. •
Fresh Products Limited (TFP) was drawn to Eldoret through SUED’s Urban Economic Plan (UEP), which identified avocado as a high-potential value chain in the North Rift region. Despite having no prior plans to expand there, SUED’s prefeasibility study and seed fund proposition convinced TFP to establish a pack house in Eldoret — a region with rising avocado production but lacking processing infrastructure.
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Avocado Avenue, operating in Ruiru, saw Kerugoya-Kutus as a strategic expansion point due to its location within the Central Kenya avocado belt. SUED’s prefeasibility study, climate resilience assessment, and seed fund support helped Avocado Avenue overcome entry barriers and commit to building a 60-tonne/day oil processing facility.
SUED’s additionality was clear: • • •
It de-risked private investment through seed funding. It provided technical assistance and prefeasibility studies that validated the business case. It facilitated county-level engagement, helping businesses secure land, licenses, and farmer networks.