Key Takeaways
- Project Launch: The Africa Fertilizer Financing Mechanism has initiated a project to deliver approximately 8,000 tons of fertilizers to 100,000 Kenyan smallholder farmers to enhance food security and farmer incomes.
- Financial Assistance: The project includes a $2 million trade credit guarantee and a $219,000 grant to Apollo Agriculture for facilitating fertilizer sales on credit.
- Partnership with Apollo Agriculture: This collaboration leverages a digital platform to connect farmers with necessary agricultural inputs through a network of retailers and agents.
- International Support: The Norwegian Agency for Development Cooperation has contributed $10.15 million, highlighting global support for sustainable agricultural practices in Kenya.
- Future Impact: Early implementation targets maize production in specific counties, with anticipated yield increases that could influence national food security strategies.
Project Details and Strategic Partnerships
Enhancing Food Security in Kenya
On April 8, the Africa Fertilizer Financing Mechanism introduced a significant initiative in Nairobi aimed at improving food security for Kenyan farmers by ensuring the delivery of vital fertilizers. This project is designed to support 100,000 smallholder farmers by increasing their harvests and incomes through improved access to agricultural inputs.
Financial Structures and Collaborative Efforts
Apollo Agriculture benefits from a $2 million partial trade credit guarantee and a $219,000 grant to support its fertilizer sales. Marie Claire Kalihangabo, the Africa Fertilizer Financing Mechanism Coordinator, emphasized the importance of this financial support: “The credit risk guarantee provides finance directly to smallholder farmers at the last mile of delivery. It includes fertilizer, certified seed, crop protection, and insurance against crop failure.”
Strengthening Agricultural Financing
International Contributions and Long-term Objectives
The Norwegian Agency for Development Cooperation’s contribution underscores the commitment to supporting agricultural development in Kenya. Nnenna Nwabufo, Director General of the African Development Bank’s East Africa regional office, highlighted the alignment with the Bank’s strategic goals: “This support is in line with the Bank’s Feed Africa Strategy and will ensure long-term private sector engagement in financing fertilizer, ultimately increasing food production and security in Kenya.”
Efficient Distribution and Credit Solutions
The project utilizes Apollo Agriculture’s digital platform to facilitate connections between farmers and a network of 150 retail agro-dealers and 800 village-based agents. This enables the efficient distribution of fertilizers and other inputs on favorable credit terms.
Impact on Local Agriculture and Policy Support
Implementation and Agricultural Growth
The initiative is already operational in Bungoma and Uasin Gishu counties, focusing on enhancing maize production. The expected increase in yields during the harvest season starting in September 2024 aims to contribute significantly to local and national food security.
Government Initiatives and Future Plans
Peter Owoko, Director of Policy at the Ministry of Agriculture and Livestock Development, shared new government initiatives aimed at bolstering food security: “During the 2024 cropping seasons, the government targets to avail up to 12.5 million tons of fertilizers to farmers under the subsidy program.” He also expressed gratitude for the support from the African Development Bank, which granted Kenya $67 million in 2022-2023 through its African Emergency Food Production Facility.
Image provided by the AFDB
