The Kenya Agrodealer Strengthening Program (KASP) has improved the input supply and output marketing distribution channels available to smallholder farmers in rural Kenya by expanding a commercially viable network of rural retail enterprises known as agrodealers (Read more about the Agrodealer Model). Through KASP, CNFA built on the foundation of existing agrodealers in Kenya and expanded the network to cover 85 districts located in agricultural areas across the country. This expansion greatly helped smallholder farmers by reducing the distance they would normally have to travel to access equipment and farm inputs, which are difficult to transport long distances, especially in areas where roads and other infrastructure are lacking. The three-year project, made possible by a grant from the Alliance for a Green Revolution in Africa (AGRA), has strengthened Kenyan agrodealers by providing training in business management and productive farming methods, as well as increased farmer access to agrodealers in remote areas, ultimately raising rural incomes and increasing household productivity.
Working with its local affiliate, the Agricultural Market Development Trust (AGMARK), CNFA has certified over 1,900 agrodealers in business management, a 183-percent increase above the target set for the program. These agrodealers have also been trained in safe product usage and handling, product knowledge and crop husbandry practices, thus allowing them to not only provide inputs to smallholder farmers, but also to share knowledge on improved production practices through over 1,300 demonstration plots established in the country under KASP. Over 137,000 farmers participated in demand creation activities hosted by all major input supply companies in the country, who provided both inputs for demonstration plots and technical information on various crops. At the close of the project, over 1.4 million farmers and over 7.1 million Kenyans were benefiting from access to the agrodealer network.
Building Agrodealer Capacity to Serve Farmers
In order to transform Kenya’s agrodealer network into a self-sustaining enterprise, CNFA took a methodical three-step approach. The first component of KASP was to strengthen the business and technical skills of agrodealers to better serve smallholder farmers. CNFA developed and implemented activities including business management training, training in product knowledge and safe use of chemicals and fertilizers, generation of market demand for improved inputs, developing agrodealer output marketing capabilities and creating the National Accelerated Agricultural Input Access Program (NAAIAP), a government-sponsored program designed to increase access to higher-yield farm inputs for resource-poor farmers.
Improving Access to Financial Services
Once agrodealers were equipped with the needed business and technical expertise, CNFA then worked to improve rural agrodealer access to finance, which is often difficult to obtain in rural areas due to the high cost of agricultural financing and high perceived risk by lending institutions. Specifically, CNFA created guarantee facilities to stimulate increased access to credit; created matching investment facilities aimed at developing new business start-ups, value addition enterprises and output marketing ventures; promoted the delivery of credit to smallholder farmers through local microfinance institutions; developed the Farm Inputs Savings and Loan (FISL) scheme, which promotes creation of savings groups amongst smallholder farmers in rural villages; and designed a farmer-held voucher system that works through the local agrodealer network.
Advancing Agricultural Policy Advocacy
The final component of KASP was to advocate for a favorable agricultural policy environment that would benefit smallholder farmers and agrodealers. This involved participation in the Thematic Working Group (TWG), a think tank unit of the Ministry of Agriculture that holds discussions on policies that affect smallholder farmers, as well as creating and supporting associations in order to advocate on behalf of small business agrodealers in various districts. This last component of KASP will ensure that the program is self-sustaining and continues to bring increased business for agrodealers and higher incomes for smallholder farmers.
Accomplishments:
At the end of KASP project implementation, CNFA has built upon previous success and achieved the following results as of May 31, 2010:
- Over 7.1 million Kenyans currently benefiting from KASP
- Over 1.4 million farmers currently involved in and benefiting from KASP
- 1,921 agrodealers trained and certified in business management skills
- 332 farmer field days held featuring 52 supply companies and attended by over 137,000 farmers
- $5,119,770 of total investment leveraged through the project
- 85 districts in agricultural areas around the country currently benefiting from KASP services
Related Links
CNFA Unlocks Smallholder Farmers Potential in Kenya
Program Overview: Kenya Agrodealer Strengthening Programs
AGMARK-Kenya Newsletter: September 2009-January 2010
AGMARK-Kenya Newsletter: July-September 2009
AGMARK-Kenya Newsletter: March-May 2009
