Sunday, 28 May 2017

HOPE FOR SMALLSCALE FARMERS IN KENYA



After my long term research on smallholders farmers in Kenya and trying to see how other farmers are doing in west Africa(Nigeria,Ghana and Ivory coast),East Africa(Uganda Tanzania and Rwanda), India and Israel. Its clear that the Kenyan farmers have more possibilities and opportunities than all the farmers across the globe  if they unite. About 5.3 million ha (20% of total land in Kenya) of the land has high rainfall supporting production of tea, coffee, pyrethrum, horticulture and floriculture, and food crops such as maize, wheat, potatoes, pulses, and dairy farming. The semi-arid area covering about 32% of total land has average rainfall and supports mixed crop and livestock rearing. Irrigated flower farming has in the recent past emerged as a major type of land use alongside agropastoralism. Over 50% of the total land cover is arid with extremely low and erratic rainfall. The expansive land is used for extensive livestock production under nomadic systems.
This means we have enough basic factor of production and utilities.

During my research my biggest questions were:
1)why is the kenyan farmer poor 
2)why are farm inputs,greenhouses,agriculture technologies expensive and not accessible to some farmers  in kenya.
3)why is it selling farmers products the biggest challenge yet farmers market dont get enough supplies,we dont have enough food for ourselves we import from Tanzania,uganda,south africa,china and lately maxico  yet we export a lot to america ,europe and arab world (things not adding up)
4)why dont we have a legal policy framework to support and guide the small scale farmers.
5)why in kenya we dont have fully integrated companies that belong to small scale farmers to help them grow products,process,sell or develop related business in line to creating a full solution to all the products from small scale farmers.   

 Lets see a summary of the the five major issues 

1)why is the kenya farmer poor 

Agriculture is the backbone of the Kenyan economy. It contributes approximately 25% of GDP, employing 75% of the national labour force. Over 80% of the Kenyan population live in rural areas and make a living, directly or indirectly, 
from agriculture. This is just a small show that farmers are very important and they raise a lot of money yet they are not getting what is right for them. Just a look at the tea farmers they do a lot and generate billions to the government yet they remain the poorest farmers and earners. The biggest issue is  long chain involved that the costs are too high. with current new law private farmers can process tea and sell. but one small scale farmers cant raise almost 150 million the cost of setting a tea factory but united you only need 150,000 farmers to each contribute ksh 1000 to set up one factory and they can process their tea and get the highest price. same to potato farmers,rice farmers,beef farmers,poultry farmers,pig farmers and others. farmers do a lot and dont deserve to be poor like what we are seeing now. #togetherwecandomore
2)why are farm inputs,greenhouses,agriculture related technologies expensive and not accessible to some farmers  in kenya.
farm inputs costs affects the progress on farming and hence  the entire economic chain. After talking to distributors from agro based companies, agroinputs non profit organisations supplying inputs all they say is its a game of  volumes to get discounts. there are several forms which this can be done eg farmers  coming together to  set up a chain of stores just like supermarkets to sell farm inputs farmers from one region with this kind of model they can control the entire distribution and so fix the price from manufactures directly. They can also unite and make their feeds and even seeds they dont need to be imported.
(example of agrimart  chain of store owned by farmers in india.. this can be set in every county by farmers  )
unless we use technology our farming cant go far.Less than 7% of Kenya’s cropped land is irrigated, while as much as 83% of land is arid or semi-arid and classed as ‘low potential’. Increasing the irrigated area could stabilise agricultural output and reduce dependence on rain-fed systems.Even if we have more land in dry areas its possible to use them look at ALMARAI  the largest integrated dairy farm in the world located in the desert of saudi arabia, we have arab quatar the largest vertically integrated poulty farm still is arabia with current technology 100% of kenyas farm land is cultivatable  This means we need irrigation equipment but prices are too high coming together means this equipment,machines and greenhouse materials or other things we need as farmers all can be imported at lower price as farmers.most importers of this materials and equipment get a profit of over 50% this can translate to reduction of this items cost by 50%. which most farmers can afford.
Some inputs and almost all these things are available in Nairobi only this means other rural farmers cant access but with the chain of farmers stores  this things will go closer to the farmers and affordable

3)why is it selling farmers products the biggest challenge yet farmers market dont get enough supplies,we dont have enough food for ourselves we import from Tanzania,uganda,south africa,china and lately maxico  yet we export a lot to america ,europe and arab world (things not adding up)
there is huge unending demand of food and so market should never be an issue. but in kenya there is a big problem in coordinating the farmers markets since they are owned by brokers and local government this brings a greater mess. export market demands huge volumes of products in kenya but exporters cant link up with farmers since farmers are not together and they dont know where to find many farmers. some pay farmers poorly or even no pay at all because farmers dont know their rights and how to use state regulators which also take years to assist them in netting the exporters or buyers who mess them.
According to the Kenya Agricultural Research Institute  currently KALRO , more than 10 million out of Kenya’s total population of 40 million is food insecure, with the majority of them living on food relief which is clear we are now depending on GOK maize flour. This means there is also distribution problem because other places  food is more and they are disposed or rotting.its all about proper planning with farmers. 
The bulk of our pulses,onions and citrus fruits come from tanzania yet we can grow them here in kenya. the local farmers should be given priority. we cant import maize from mexico yet we can help farmers in eldoret and kitale fight armyworm and irrigate their farms for more production of maizedevelop policies which allow them access credit inputs and labour costs from DEVELOPMENT financial institutions .
to solve this farmers can team up and set their markets private owned and set a franchise chain of stores in towns , estates and even home delivery. this creates distribution,availability hence demand and so  huge market for their products. if marikiti is owned by brokers the farmers can hire a big store in the CBD and set something like this where buyers can come shop fresh products from small scale farmers. if this is set  across kenya many people would be willing to support  and buy from this stores which belongs to the farmers. it has worked in Tanzania 


DSC_8099

Get more details  on this model click
its also possible to explore overseas market the procedure is easy and it takes two farmers sitting on a computer and searching buyers once they get leads, they can travel to confirm on the buyer and sign contracts. its possible for farmers to come up and set their own export company that pays them all the proceeds from th exported products. currently exporters are getting over 400% profit from exporting smallholder farmers products yet farmers are making losses or getting small margins.
4)why dont we have a legal policy framework to support and guide the small scale farmers.
our society actions has to be backed by written laws and policies there is no single law in kenya set only for smallholder farmers to ensure there is proper support of this farmers  billions of money from Govt and donors are directed to smallscale farmers for research,value addition, capacity building but little impact is seen because of mismanagement and lack of sustainable plan. for example an NGO sets 100 greenhouses to farmers yet they dont help them build market and water for irrigation so the projects goes down yet millions is gone the law should be strict that unless you have a sustainable plan you cant just do projects in the name of helping but in reality you are not

5)why in kenya we dont have fully vertical integrated companies that belong to small scale farmers to help them grow products,process,sell or develop related business in line to creating a full solution to all the products from small scale farmers. According to the Ministry of Agriculture, an estimated five million out of about eight million Kenyan households depend directly on agriculture for their livelihoods. But in kenya we have one extension officer for every 1,500 farmers according to the Association for International Agriculture and Rural Development. That is combining "ghost" government extension officers and private companies extension officers.
It is a time when it is never about what the government can do but what can we do as farmers, i decided to visit Leeton and learn what is going on in Riverrina new south wales food basket of Australia 

SunRice is the consumer brand and trading name of Ricegrowers Limited, which is one of Australia's largest exporters of processed branded food products. In the 2016 financial year, SunRice recorded revenue of ksh one trillion  and profit of 3.8 billion. this company is owned by current or former rice growers. and is vertically integrated/VI( VI- IS strategy where a company expands its business operations into different steps on the same production path, such as when a manufacturer owns its supplier and/or distributor) sunrice sells rice even to kenya and they make all products associated with rice so they utilise everything thus farmers get good pay. 
its possible to set such companies for all farmers products in kenya without depending on the government 
 The above is just a summary there are many things that smallholder farmers can do in kenya to ensure that they earn what is rightfully theirs. The best thing is to come together and unite for this common goal, set up an association or cooperative society and move on.  i am looking for farmers who are willing so that we can team up bring together all other farmers so that we can see the best way to start.The reason why you see success in israel is because of the concept of kibbutz,A kibbutz is a COLLECTIVE community in Israel that was traditionally based on agriculture. its all about coming together.
I am calling on all farmers lets unite and together we can do more.
like smallholder farmers page in facebook Smallholder Farmers Kenya
also record your details so that we can plan a meeting to discuss on how we can help one another click and fill the form
if you need more info or you want to share you ideas as well contact me on call/whatsapp/text +254729379092 email nicklykipkorir@gmail.com skype:nicklykipkorir 
TOGETHER WE CAN DO MORE 





Thursday, 18 May 2017

Get Agribusiness Loans



Most farmers dont know that The Agricultural Finance Corporation (AFC), a wholly owned Government Development Finance Institution (DFI),mandated to provide credit for the sole purpose of developing agriculture. with farmer friendly rates and repayment periods. This are the available loans.
1.SCHOOL BASED
Loan Description
Loans to Primary, Secondary & Tertiary intuitions to undertake school farming. Aim is to subsidize the cost of school feeding. Supporting Self- Sufficiency in Schools
Loan Specification
Items Financed
*Crop & Livestock production
*Farm Machinery & infrastructure
*Agribusiness
*Horticulture
*Value addition amongst others
Features
*Payment period between 1-5 years
*Affordable interest rates
*Flexible security
Requirements
*Proposal for intended project
*Open a Vuna relationship account with AFC
*Adequate land size for the intended project
2. SEASONAL CROP CREDIT
Loan Purpose
These are loans that are provided for the production of maize, wheat, potatoes, rice and other foods crops that have maturity of not more than 12 months. Production costs for these food crops is high because of ever rising cost of inputs such as seeds, fertilizer, chemicals and land preparation. This credit facility is aimed at assisting farmers acquire the inputs and ultimately boost productivity. Yet, there is always a ready market for cereals, being a staple national food.
Loan Specification
·         Items Financed
·         Production Cost
·         Harvest Cost
Features
·         Repayment period of upto 12 months
·         Designed for individuals and groups
Requirements/Eligibility
·         suitability of the crop
·         Tangible security to the loan
·         Minimum acreage is 5 acreas for maize and wheat only.
3. WATER DEVELOPMENT
Loan Purpose

These are loans intended for water infrastructure for irrigation and livestock use. This product is borne out of the realization that irrigated-based farming is still very limited in the country, yet this is the surest way to militate against the vagaries of weather such as the frequent droughts that leads to crop and animal loss. A farmer who ventures into horticulture, for instance, would need a permanent water supply to assure of sustained production. The arable land that is currently underutilized can be put to agricultural use through availing water and associated irrigation facilities.
Loan Specification

Items Financed
Water tanks and troughs, Shallow wells, Boreholes.
Pumps, Pipes and connections, Irrigation equipment, Farm dams, Labor, Transportation related to installations.
Features
·         Availability of suitable and adequate water catchment
·         Provision of water permits by the necessary water authorities
·         Water test certificate for quality and quantity in case of bore hole
Requirements/Eligibility
·         Suitability of the of the crop
·         Tangible security for the loan
·         Minimum acreage financed is 5 acres for maize and wheat only.
4. CASH CROP
Loan Description
The credit facility for cash production of tea, coffee, Sugarcane, pyrethrum, cashew nuts, citrus, mango trees, bananas, stevia and other cash crops.
Loan Specification
Items Financed
·         Crop establishment,Crop maintenance.
·         Processing equipment,Operating costs
Features
·         Repayment of 2-5 years with annual instalments
·         Designed for individual & groups
Requirements/Eligibility
·         Tangible security for the loan
·         Appropriate and approved crop varieties
·         Availability of processing facilities within reasonable distances.
5. Machinery
Loan Purpose
This loan is for the purchase of farm machinery to facilitate production and transportation of farm produce. This is a direct response to the low uptake of technology and mechanized agriculture that continues to negatively impact on productivity levels. Apart from the convenience, increased mechanization and yields, an individual who comes for this loan product is assured of getting extra revenues from their farm machinery through hiring out to those who don’t have it.
Loan Specification
Items Financed
·         Farm machinery and implements
·         Pick-up and truck for transport of farm produce
Requirements/Eligibility
·         Machinery/vehicle to be registered jointly with AFC
·         Applicant to sign a blank transfer form to be deposited with the Corporation together with log book
·         Machinery to be insured with comprehensive insurance cover
·         Minimum deposit of 30% of net purchase price for new machinery and 50% deposit for reconditioned machinery
·         Provide a written quotation from reputable suppliers
·         Machinery/ vehicle brands with high resale value are encouraged
6. Agribusiness
Loan Purpose
These are loans designed to benefit agri-business traders. It is meant to provide start-up capital for those seeking to start, or are engaged in agricultural microenterprises. There exist huge opportunities for the youth in agricultural micro and small medium enterprises across the value chain. Thus, beneficiaries of this loan facility will engage in wealth creation and for those unemployed, resolve their unemployment challenges.
Loan Specification
Items Financed
Traders, Transporters, Marketers and Processors farm produce.
Features
·         Designed for individual & groups
·         Repayment period up to 3years
·         Interest rate is 15% per annum
Requirements/Eligibility
·         Viability of the business
·         Tangible security for the loan
·         20 % equity contribution towards the project
8. VUNA ACCOUNT
Account Description

A transaction account designed for groups and individuals in agricultural related enterprises such as farmers, traders and suppliers of agricultural inputs. Despite the fact that Kenya has a relatively well developed financial system, a majority, especially farmers remain without banks accounts to transact their financial needs. This is the gap that the Vuna Account is designed to bridge since it is available in all our branches across the counties. Farmers can also build savings to be used as collateral in securing loans.
Vuna Specification
Requirements
*Registration certificate (for Groups)
*Passport size photo for the officials/individuals
*Copies of national identity card and PIN certificate (group official)
*Group by-laws and a resolution to open the account.
*Opening amount- Kshs.500 for individuals and Ksh. 2,500 for Self groups or Partnerships
Benefits
*Easy to open and operate.
*Accessible in all our branches.
*Affordable withdrawal fee.
*Free quarterly account statement.
*No withdrawal limit.
9. STAWISHA GROUP
Loan Description
A micro-credit facility targeting groups trading in agricultural produce and agricultural inputs particularly the youths and women who have no tangible security to secure credit. Stawisha Group Loan is in 3 levels which will allow groups to access a higher amount as they successfully grow their business.The challenges facing this target group, such as unemployment and poverty can be addressed by accessing funding and engage in enterprises across the agricultural value chain.
Loan Specification
Features
*Loan amount range from Ksh. 5,000 - Ksh.1,000,000
*Repayment period from 12 -36 months              
Requirements
*Active group undertaking Agricultural related activities
*Vuna Account holder.
*Minutes from the group stating the resolution to borrow the loan.
*Guarantee-by group members and group officials.
*15% interest per annum
Benefits
*Flexible security -group guarantee and group savings.
*Affordable interest
*Flexible repayment period
*Opportunity to graduate to the next level of credit scheme
*Fast processing
10. LIVESTOCK & FISHERIES
Loan Purpose
These are loans for livestock and fisheries production. The livestock sector contributes about 12% of Kenya’s Gross Domestic Product, 40% to the agricultural GDP and employs 50% of agricultural labor force. Thus, it is an area with huge potential for individuals to invest in as a business
Loan Specification
Items Financed
Dairy and beef production.
Sheep and goat production, Bee keeping, Piggery and poultry product, Working capital, Fish production
Features
·         Repayment period 2-5 years at annual instalments
·         Designed for individual & groups
Requirements/Eligibility
·         Tangible security for the loan
·         Suitability of the project
·         Experience in the enterprise Livestock & Fish production
11. HORTICULTURE & FLORICULTURE
Loan Description
These are loans to finance horticultural and Floricultural projects
Loan Specification
Items Financed
*Fruits, vegetables and flowers
*Green houses and related equipment.
*Water and electricity supply systems.
*Harvesting and packaging equipment .
*Labour and other operational costs.
*Working capital
Features
*Repayment period 2-5 years at annual instalments
*Designed for individual & groups
Requirements
*Relevant experience in floriculture & horticulture
*Compliance with regulatory requirements
*Adequate water supply
All they need is a good professional business proposal, securities, proper farm plan and access to utilities like water, any relevant approval if needed and farmers experience in th sector or plan to use an expert. dont leave your farm idle apply for this loans and farm.

If you need a good business proposal  talk to me nicklykipkorir@gmail.com or call/whatsapp +254729379092 or skype id: nicklykipkorir

AFC BRANCHES
EASTERN REGION

Branch Name
Address
Contact Details
Kiambu
Kiambu Rd
P.O BOX 285-00900
Tel:+254-705-318963
Afckiambu@agrifinance.org
Wote
Ngei Rd P.O.Box 282-90300
Tel: 020-2675807 Afcwote@agrifinance.org
Kajiado
Main Town Rd P.O.Box 63-01100
Tel: +254-729-630066 Afckajiado@agrifinance.org
Ngong
Ngong-Kiserian Rd P.O.Box 46-00208
Tel: +254-723-919321 Afcngong@agrifinance.org
Machakos
Ngei Rd P.O.Box 332-90100
Tel:020-2624249 Afcmachakos@agrifinance.org
Loitokitok
Elassit Rd
P.O BOX 71-00209
Tel:+254-717-628628
Afcloitokitok@agrifinance.org
Development House
Tom Mboya Street
P.O BOX 30367-00100
Tel:020-3317199,
020-2512894
Afcdevelopmenthse@agrifinance.org
CENTRAL RIFT REGION
Branch Name
Address
Contact Details
Bomet
Sotik-Narok Rd P.O.Box 368-20400.
Tel:+254-773-554362 Afcbomet@agrifinance.org
Molo
Njoro-Molo Rd P.O.Box 228-20106.
Tel:020-2172732 Afcmolo@agrifinance.org
Naivasha
Kariuki Chotara Rd P.O.Box 220-20117.
Tel:050-2020463 Naivasha@agrifinance.org
Kericho
Temple Rd P.O.Box 101-20200.
Tel:+254-775-798906 Afckericho@agrifinance.org
Eldama-Ravine
Maji Mazuri Rd P.O.Box 58-20103.
Tel:+254-774-496380 Afcravine@agrifinance.org
Nakuru
Kijabe Rd P.O.Box 1057-20100.
Tel:+254-711-362775 Afcnakuru@agrifinance.org
Kabarnet
Kabarnet-Eldoret Rd P.O.Box 300-304000.
Tel:+254-705-659272 Afckabarnet@agrifinance.org
Narok
Nairobi-Narok Rd P.O.Box 76-20500.
Tel:+254-770-567277,
+254-770-433171 Afcnarok@agrifinance.org
NYANZA/WESTERN REGION
Branch Name
Address
Contact Details
Kakamega
Elassit Rd P.O.Box 71-00209
Kisii
NCPB House P.O.Box 422
Tel:020-8033032 Afckisii@agrifinance.org
Migori
Administration Rd P.O.Box 392 -40100
Tel:020-2352075 Afcmigori@agrifinance.org
Kisumu
Oginga Odinga Rd P.O.Box 420 - 40100
Tel:+254-700-015609 Afckisumu@agrifinance.org
Bondo
Off Bondo-Usenge Rd(Along Main Entr to Bondo Town)
P.O BOX 245-40601
Tel:057-2512452 Afcbondo@agrifinance.org
Bungoma
NCPB Depot
P.O BOX 6-50200
Tel:020-2669796
+254-718867913 Afcbungoma@agrifinance.org
Kilgoris
Agriculture House
P.O BOX 46-40700
Tel:+254-717-628628
Afckilgoris@agrifinance.org
Oyugis
Oyugis-Kisii Rd
Tel:020-2351977
Tel:+254-712-781187,
+254-727-821440
Afcoyugis@agrifinance.org
COAST REGION
Branch Name
Address
Contact Details
Kilifi
Near KCB
Tel:+254-772-125313 Afckilifi@agrifinance.org
Ukunda
Mombasa-Lunga Lunga Rd
Tel:+254-772-561510
Afcukunda@agrifinance.org
Bura
NIB Offices
P.O BOX 52 Bura-Tana
Tel:+254-717-806016 Afcbura@agrifinance.org
Mpeketoni
Opp.Kenyatta Primary Rd
P.O BOX 109-80503
Tel:+254-701-867478,
+254-775-243192
Afcmpeketoni@agrifinance.org
Hola
NIB Offices
P.O BOX 5 Hola-Tana
Tel:0717-806016
Afchola@agrifinance.org
NORTH RIFT REGION
Branch Name
Address
Contact Details
Eldoret
Eldoret-Unga Rd P.O.Box 827-30100.
Tel:053-2061432 Afceldoret@Agrfinance.org
Kitale
Makasembo Rd P.O.Box 403-30200.
Tel:+254-786-629946 Afckitale@agrifinance.org
Kapsabet
Opposite Post Office P.O.Box 301-30300.
Tel:020-2320309 Afckapsabet@agrifinance.org
Turbo
Uganda Rd P.O.Box 301-30300.
Tel:+254-711-444149 Afcturbo@agrifinance.org
Ziwa
Sirikwa Center P.O.Box 8 Ziwa
Tel:+254-712-353974 Afcziwa@agrifinance.org
Iten
Off Iten-Kapsowar Street
P.O BOX 454-3070
Tel:+254-773-568265,+254-772-958248
Afciten@agrifinance.org
MOUNT KENYA REGION
Branch Name
Address
Contact Details
Nyeri
Bondeni Rd P.O.Box 242
Tel: +254-771-281498 Afcnyeri@agrifinance.org
Thika
Karanja Street P.O.Box 1345
Tel: +254-733-865181 Afcthika@agrifinance.org
Muranga
Huru Highway P.O.Box 65
Tel:020-2316799,
+254-721-949749 Afcmuranga@agrifinance.org
Meru
Meru-Makutano Rd P.O.Box 47
Tel:+254-720-978382 Afcmeru@agrifinance.org
Embu
Nairobi-Embu Rd Kfa Building P.O.Box 125
Tel:+254-703-125304 Afcembu@agrifinance.org
Nyahururu
Nyeri-Nyahururu Rd Rd P.O.Box 276
Tel:065-2032223,
020-2023856 Afcnyahururu@agrifinance.org
Kerugoya
Kirinyaga Building Rd P.O.Box 104
Tel:Tel:+254-770-354963,
+254-774-354963 Afckerugoya@agrifinance.org
Nanyuki
Bidha Bora Rd Rd P.O.Box 257
Tel:051-8010937 Afcnanyuki@agrifinance.org
Karatina
Industrial Area Rd
P.O.Box 382
Tel:061- 4572008,
061-2302254 Afckaratina@agrifinance.org
Chogoria
Meru Kaveche Rd
P.O BOX 481-60401
Tel:+254-770-012356
Afcchogoria@agrifinance.org


  • Agricultural Finance Corporation,
    Development House,
    Moi Avenue Nairobi,
  • Phone: +254-020-3317199/3272000

    Hotline (1): +254704153773

    Hotline (2): +254788524998

    Fax: +254-2219390
  • P.O. BOX 30367-00100 Nairobi, Kenya
    Fax: +254-2219390
    Email:complaints@agrifinance.org
  • Fri-Mon: 8am - 4pm

    Saturday: Closed

    Sunday: Closed