Africa Fertiliser Financing Mechanism has announced it will provide a $2 million partial trade credit guarantee and a $219,000 grant funding to Nairobi-based Apollo Agriculture Limited to support the distribution of over 7,000 tonnes of fertilisers to some 100,000 smallholder farmers in Kenya.

Between 2024 and 2026, the project will support Apollo Agriculture Limited to sell fertiliser through a part of its network, covering around 150 retail agro-dealers and 800 village-based agents using digital platforms.

Most smallholder farmers in Kenya buy fertilisers through informal credit, microfinance institutions and commercial banks, but challenges remain for farmers to access fertiliser financing as some cannot provide tangible collateral. These new funds will be channelled through the Fertiliser Financing for Sustainable Agriculture Management project.

“Fertiliser Financing for Sustainable Agriculture Management project will improve farming productivity by facilitating access and use of fertiliser by smallholder farmers at the last mile, with 50 per cent of women among the beneficiaries,” said Marie Claire Kalihangabo, Africa Fertiliser Financing Mechanism Coordinator.

The fertiliser market’s leading players include importers, blenders, and the Kenyan government, which runs a fertiliser subsidy programme. In 2021, Kenya imported 758,000 tonnes of chemical fertilisers. Kenyan farmers pay $35 for a 50 kilogramme fertiliser bag.

Benjamin Njenga, co-founder of Apollo Agriculture Limited, said, “Apollo Agriculture is pleased to establish a partnership with the Africa Fertiliser Financing Mechanism to make essential farming inputs accessible and affordable to small-scale farmers, thereby boosting farmer income and Kenya’s food security.”

The board of directors of the African Development Bank approved the Fertiliser Financing for Sustainable Agriculture Management project on October 13, 2023. It aligns with the bank’s Feed Africa Strategy because it will stimulate the private sector’s fertiliser financing in Kenya, improving food productivity and security.

It ensures the continuity of the bank’s country strategy paper 2019-2023 for Kenya and the bank’s technologies for African agricultural transformation programme.

• A Tell report