AGRA and Kenyan Government have re-confirmed their joint commitment to fast-track the transformation of smallholder farming in the country. New investments are aligned to the Bottom-Up Economic Transformation Agenda – BETA – and county-led priorities in turning farming into thriving rural enterprises.
Driving Smallholder Farming Transformation Through Strategic Investment
Through its five-year strategy, AGRA is investing USD 29 million (Ksh 3.8 billion) in Kenya to deliver meaningful smallholder farming transformation. The investment focuses on soil health restoration, market access, and financial inclusion in addition to building support systems that ensure farmers benefit directly.
AGRA’s President, Alice Ruhweza, emphasized that Kenya has the potential to unlock smallholder farming transformation through fixing soils, improving markets, and expanding financing solutions.
AGRA and Kenyan Government Strengthens Partnerships for Smallholder Farming Transformation
AGRA does not create parallel structures but works within the national and county government systems to institutionalize smallholder farming transformation. Its 2024 MoU with the Ministry of Agriculture & Livestock Development ensures coordination of investments in fertilizer management, soil health, seed systems, and extension services-these are key pillars through which sustained smallholder farming transformation can be achieved.
Restoring soil fertility is a high priority, as it is referred to as the silently operating engine of productivity. The effectiveness of fertilizer subsidies in key regions is constrained by widespread soil degradation and acidification.
AGRA is supporting counties in adopting the Africa Fertilizer and Soil Health Action Plan to rebuild the foundation of smallholder farming transformation.
Climate-Smart Solutions Supporting Smallholder Farming Transformation
AGRA and Kenyan Government partnership targets post-harvest losses, which is the issue threatening to erode gains of smallholder farming transformation.
Through the Green Climate Fund support, AGRA is deploying almost US$7 million (Ksh 900 million) to scale climate-smart post-harvest technologies like dryers, hermetic storage, shellers, and warehouse receipt systems. These innovations help farmers store safely, reduce spoilage, and sell when the prices of their crop are favorable.
Improved storage of pulses and fruits in Makueni County is helping farmers reduce losses, increasing their incomes, and ensuring stable household and investment decisions.
Financing and Youth Inclusion to Deepen Smallholder Farming Transformation
Yet, despite its economic importance, agriculture receives only about 5 per cent of formal bank lending. To enhance the pace of transformation of smallholder farming, AGRA and Kenyan Government is collaborating with IFAD to support banks, SACCOs, and microfinance institutions in designing financial products targeted towards farmers and agribusinesses.
AGRA’s forward-looking plan aspires to support:
- 2.5 million farmers adopting climate-smart practices
- 2 million farmers accessing climate-smart post-harvest solutions
Strengthened structured markets for 100,000 farmers Expanded digital and frontline advisory services to improve farmer–extension worker ratio These commitments put AGRA and Kenyan government at the heart of the long-term transformation of smallholder farming in Kenya.
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