Is cabbage farming in Kenya profitable? What is the cost of cabbage farming per acre in Kenya? How quickly can you recover your investment?
To understand the true reality, we must focus on accurate figures.
In this article, we examine costs in four scenarios: a new farmer who must lease land and install drip irrigation, with options to either raise their own seedlings or outsource.
We also analyze costs for a farmer with land and an already-established irrigation system, who can similarly choose to raise their own seedlings or outsource.
Cost of Cabbage Farming in Kenya
As a New Farmer
To start cabbage farming, you need to lease land. Good agricultural land with fertile, well-drained soil, water access, and accessibility will cost you at least KSh 20,000 per year.
For profitability, lease for at least 5 years. You also need a sustainable irrigation system since you cannot rely on rainfall alone.
Good profits are often made off-season during dry periods.
A good irrigation system for one acre will cost you KSh 150,000 plus KSh 100,000 for a 1,000-liter water tank and water tower.
This brings the total irrigation cost to KSh 250,000.
With that setup, you begin land preparation, ploughing, and fallowing.
This will cost you KSh 6,500 and KSh 4,500 for ploughing and fallowing, respectively.
It will also cost you KSh 3,000 for making planting holes. This brings the total land preparation cost to KSh 14,000.
Most cabbage varieties take 85-90 days from transplanting to maturity.
As a new farmer, you have two options: either buy seedlings or raise your own.
Let’s begin with buying seedlings.
You need about 12,000 seedlings if planted at a spacing of 60cm by 50cm.
This spacing produces an average-sized cabbage.
Each seedling costs KSh 4-5. For this case, we shall use KSh 5 per seedling.
Therefore, seedlings will cost KSh 60,000.
You need at least 2 tons of well-decomposed manure at KSh 10,000.
After planting, you need to feed the cabbage with DAP, NPK 17.17.17, and CAN fertilisers.
Read Also:Best Fertilizer for Cabbages in Kenya: A Complete 2025 Guide
This will cost you KSh 13,000 for 2 bags of DAP, KSh 9,000 for NPK 17.17.17, and KSh 9,000 for CAN.
That’s a total fertiliser cost of KSh 31,000.
You will also need to control pests such as cutworms and Diamond Back Moth (DBM), plus diseases such as black rot.
This means you will need insecticides and fungicides that will cost you KSh 20,000.
Since you cannot rely on rainfall alone, you will have to irrigate, and the water will cost you about KSh 25,000.
You’ll need people to do the planting and weeding, which will cost you KSh 10,000.
You also need casual labour for four months, from land preparation to harvesting.
With a salary of KSh 10,000 per month, it will cost you KSh 40,000.
Other costs and miscellaneous expenses will cost you KSh 20,000.
This brings the production cost to KSh 230,000.
This brings the total cost of cabbage farming per acre in Kenya for a new farmer who is leasing land and installing drip irrigation to KSh 480,000 (KSh 230,000 + 250,000).
Read Also: Best Month to Plant Cabbages in Kenya for Maximum Profit
If you decide to raise your own seedlings, this will only cost you KSh 10,000. That’s KSh 50,000 less on the total cost of production, making the total cost of production KSh 430,000.
For a farmer with their own land and existing irrigation system, it will cost KSh 14,000 for land preparation, KSh 10,000 for manure, KSh 60,000 for seedlings, KSh 20,000 for chemicals, KSh 31,000 for fertilizers, KSh 40,000 for labor, KSh 10,000 for weeding, KSh 25,000 for water, and KSh 20,000 for miscellaneous expenses. That’s KSh 230,000 total production cost.
If this farmer decides to raise their own seedlings, they will save KSh 50,000 by spending only KSh 10,000 on seeds. This lowers the cost of production to KSh 180,000.
Cabbage Farming Profit per Acre
To understand profitability, we must focus on yield. Assuming 1,000 cabbages are lost (on the higher side), the farmer will harvest 11,000 heads of cabbage weighing above 5kg each.
Cabbage prices are highly volatile in the market and keep changing. During supply season, farm-gate prices can fall to below KSh 10 per head, while during scarcity, prices tend to rise above KSh 50 per head.
In this case, we shall use KSh 20 per head as the farm-gate selling price. This means the farmer makes KSh 220,000 as revenue from selling 11,000 heads of cabbage.
Financial Analysis by Scenario:
Scenario 1: New farmer, leased land, installed drip irrigation, outsourced seedlings
- Total Cost: KSh 480,000
- Revenue: KSh 220,000
- Loss in first season: KSh 260,000
Scenario 2: New farmer, leased land, installed drip irrigation, own seedlings
- Total Cost: KSh 430,000
- Revenue: KSh 220,000
- Loss in first season: KSh 210,000
Scenario 3: Farmer with own land and irrigation, outsourced seedlings
- Total Cost: KSh 230,000
- Revenue: KSh 220,000
- Loss in first season: KSh 10,000
Scenario 4: Farmer with own land and irrigation, own seedlings
- Total Cost: KSh 180,000
- Revenue: KSh 220,000
- Profit in first season: KSh 40,000
Economic Analysis: ROI and Payback Period
What is ROI (Return on Investment)?
Return on Investment (ROI) is a financial metric used by economists and investors to evaluate the efficiency of an investment. It measures the gain or loss generated relative to the amount invested. ROI is expressed as a percentage and calculated using the formula:
ROI = (Net Profit / Total Investment) × 100
A positive ROI indicates profit, while a negative ROI indicates a loss. Generally, an ROI above 10-15% annually is considered good for agricultural investments.
What is Payback Period?
Payback Period is the time required for an investment to generate cash flows sufficient to recover the initial investment cost. Economists use this metric to assess investment risk and liquidity. A shorter payback period indicates lower risk and faster capital recovery.
Payback Period = Initial Investment / Annual Cash Flow
ROI and Payback Period Analysis for Each Scenario:
Assuming 3 production cycles per year with consistent performance:
Scenario 1: New Farmer (Leased Land, Installed Irrigation, Outsourced Seedlings)
- Initial Investment: KSh 480,000
- Annual Production Cost (3 cycles): KSh 690,000 (KSh 230,000 × 3)
- The Annual Revenue (3 cycles): KSh 660,000 (KSh 220,000 × 3)
- Annual Net Loss: KSh 30,000
- ROI: -6.25% (negative – indicates loss)
- Payback Period: Not achievable with current pricing
Scenario 2: New Farmer (Leased Land, Installed Irrigation, Own Seedlings)
- Initial Investment: KSh 430,000
- Annual Production Cost (3 cycles): KSh 540,000 (KSh 180,000 × 3)
- The Annual Revenue (3 cycles): KSh 660,000
- Annual Net Profit: KSh 120,000
- ROI: 27.9% (excellent return)
- Payback Period: 3.6 years
Scenario 3: Established Farmer (Own Land, Outsourced Seedlings)
- Initial Investment: KSh 0 (infrastructure already exists)
- Annual Production Cost (3 cycles): KSh 690,000
- The Annual Revenue (3 cycles): KSh 660,000
- Annual Net Loss: KSh 30,000
- ROI: Not applicable (negative returns)
Scenario 4: Established Farmer (Own Land, Own Seedlings)
- Initial Investment: KSh 0 (infrastructure already exists)
- Annual Production Cost (3 cycles): KSh 540,000
- The Annual Revenue (3 cycles): KSh 660,000
- Annual Net Profit: KSh 120,000
- ROI: Infinite (no initial investment, positive returns)
- Payback Period: Immediate (no initial investment to recover)
Economic Recommendations:
- Most Viable Option: Farmers with existing land and irrigation should raise their own seedlings for maximum profitability.
- New Farmers: Should focus on raising their own seedlings and consider starting with smaller plots to minimise initial investment risk.
- Market Timing: Target off-season production when prices exceed KSh 30 per head to improve profitability significantly.
- Cost Optimization: Focus on reducing production costs through efficient resource management and bulk purchasing of inputs.
You can manage to grow cabbage at least 3 times per year. The aim is to maintain a consistent supply, grow big, good-quality cabbages that attract buyers even during times of high supply, while keeping costs as minimal as possible. Also, ensure you conduct market analysis to identify varieties that move quickly in the market and will reliably purchase your produce.
Although timing is challenging, cabbages often command good prices during dry seasons when supply is limited.
