Strategy Note /
Kenya

Kenya: Locusts nearing agriculture, not a crisis yet

  • Locust swarms are nearing the agriculturally important central and west regions of Kenya.

  • Given the scale of the locust infestation, this has to be acknowledged as an investment risk factor.

  • A number of factors exacerbate the sensitivity of the investment case to this elevated natural disaster risk.

Kenya: Locusts nearing agriculture, not a crisis yet
Hasnain Malik
Hasnain Malik

Strategy & Head of Equity Research

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Tellimer Research
13 February 2020
Published byTellimer Research

Locust swarms are nearing the agriculturally important central and west regions of Kenya. Below is an illustration from the 10th February update from the UN Food and Agriculture Organisation (FAO). 

We laid out the potential risk for the Kenya investment case from locusts recently.

Every year, there is a risk from natural disaster (drought or flooding) for Kenya. But given the first-in-a-generation scale of the locust infestation, this has to be acknowledged as an investment risk factor. A number of factors exacerbate the sensitivity of the investment case to this elevated natural disaster risk.

See our full report Kenya: Locusts, another risk  from 30 January 2020.