Kenya's smallholder agriculture industry will be supported with private-sector local currency securitisation led by anchor investor, IDH Farmfit Fund, with the transaction structured by Kaleidofin in partnership with agri-finance company Apollo Agriculture
Structuralising capital for rural lending is the need of the hour, and the currecy securitisation move will generate smallholder finance with the development of institutional credit markets. Approximately US$2.1mn has been mobilised through Apollo Agriculture to secure smallholder farmer credit in Kenya for agricultural inputs. About 51% of the 23,839 smallholder farmers covered by the portfolio are women, while 22% are first-time borrowers.
“This transaction demonstrates how innovative financial structures can unlock capital for smallholder farmers at scale,” said Roel Messie, CEO of IDH Investment Management, which manages the IDH Farmfit Fund. “Building investable opportunities in agriculture requires both capital and enabling infrastructure, and this partnership brings those elements together.”
Kaleidofin’s ki platform that caters to underserved segments by converting granular agricultural loans into investable securities in local currency, materialised the securitisation.
Apollo Agriculture leverages ki's AI-driven risk intelligence system in assessing creditworthiness. Apollo focuses on supporting farmers who does not have a background in credit.
“This is a meaningful step in building efficient, scalable funding for smallholder agriculture and validates our tech-enabled business model,” said Eli Pollak, CEO of Apollo Agriculture. “By converting receivables into working capital, we are able to lower our cost of funds and expand access to affordable, local currency financing for farmers.”
IDH Farmfit Fund to support Kenya's smallholder farmers
Structuralising capital for rural lending is the need of the hour.
