Key Takeaways
- Kaleidofin and Apollo Agriculture have closed Kenya's first private-sector local currency securitisation in the smallholder agriculture sector, backed by the IDH Farmfit Fund as anchor investor.
- The transaction securitised KES 370 million in smallholder farmer credit, mobilising KES 276 million (approximately USD 2.1 million) across a portfolio of 23,839 farmers — 51% women and 22% first-time borrowers.
- The issuance received a BBB- investment grade rating from Agusto, the first such rating for this asset class in Kenya.
- The deal is the first step in a multi-year securitisation programme targeting KES 2.37 billion in mobilised financing and more than 130,000 farmers over time.
- Supporting partners include FSD Africa, the UK's MOBILIST programme, and British International Investment (BII), which provided technical assistance to Apollo Agriculture through BII Plus.
Fintech platform Kaleidofin has closed Kenya's first private-sector local currency securitisation in the smallholder agriculture sector, in partnership with Apollo Agriculture and with anchor investment from the IDH Farmfit Fund. The transaction, structured through Kaleidofin's ki platform, converts granular agricultural loans into investable assets for institutional investors and is the first of its kind in Kenya's smallholder finance market.
Transaction Details
The deal involved the securitisation of smallholder farmer credit for agricultural inputs valued at KES 370 million, with KES 276 million — approximately USD 2.1 million — mobilised through the sale of receivables originated by Apollo Agriculture. The portfolio spans 23,839 smallholder farmers, of whom 51% are women and approximately 22% are first-time borrowers. Credit rating agency Agusto assigned an investment grade rating of BBB- to the issuance, marking a milestone in demonstrating the creditworthiness of smallholder agriculture as an asset class.
How Apollo Agriculture Assesses Farmer Credit
Apollo Agriculture's credit technology stack underpins the transaction. The platform combines satellite imagery of farm plots, machine learning models trained on agricultural yield patterns, and mobile-based data collection to assess borrower creditworthiness in real time — without requiring the collateral or credit history that traditional lenders demand. The securitisation structure allows Apollo to recycle capital efficiently, aligning financing to seasonal agricultural cycles while expanding lending capacity without increasing balance sheet leverage.
“This is a meaningful step in building efficient, scalable funding for smallholder agriculture and validates our tech-enabled business model. By converting receivables into working capital, we are able to lower our cost of funds and expand access to affordable, local currency financing for farmers,” said Eli Pollak, CEO of Apollo Agriculture.
Kaleidofin's ki Platform and Local Currency Structure
The transaction was structured through Kaleidofin's ki platform, a dedicated debt capital market infrastructure that supports customised portfolio structuring and risk segmentation. The platform is powered by Kaleidofin's proprietary ki score, an AI-driven risk intelligence layer built on loan transaction data, bureau information, and alternative data sources. Financing in local currency is a deliberate design choice, protecting farmers from foreign exchange volatility that can significantly increase debt repayment burdens.
“We designed the Kaleidofin platform to function as scalable market infrastructure for traditionally excluded customer segments such as smallholder farmers, women entrepreneurs, clean energy and small business. By enabling customised structuring and data-driven risk insights via ki score, we are building the foundations for institutional capital to flow into sectors such as smallholder agriculture in a sustainable way,” said Sucharita Mukherjee, Co-founder and CEO of Kaleidofin.
Ecosystem of Partners
The IDH Farmfit Fund acted as anchor investor in the transaction. UK-funded development agency FSD Africa supported legal and regulatory structuring, investor engagement, and market development, while the UK's MOBILIST programme contributed tax and structuring guidance. British International Investment provided technical assistance to Apollo Agriculture through its BII Plus facility, strengthening the company's reporting and technology capabilities to support the KES-denominated funding model.
“This transaction demonstrates how innovative financial structures can unlock capital for smallholder farmers at scale. Building investable opportunities in agriculture requires both capital and enabling infrastructure, and this partnership brings those elements together,” said Roel Messie, CEO of IDH Investment Management.
“This transaction showcases how well-functioning market infrastructure can catalyse institutional capital for sectors traditionally considered high-risk, like smallholder agriculture. We see this as a blueprint for how structured finance can unlock sustainable, large-scale funding for inclusive growth across Africa,” said Dr. Evans Osano, Chief Financial Markets Officer at FSD Africa.
Road Ahead for Apollo Agriculture and Kaleidofin
The transaction is the first step in a broader multi-year securitisation programme expected to mobilise approximately KES 2.37 billion and reach more than 130,000 farmers over time. The parties describe it as a replicable model for structured smallholder finance across other emerging markets.
