SSNUP project completion: financial inclusion for smallholders in the horticultural value chain in Kenya

Impact investor Oikocredit successfully completed a SSNUP co-funded project with Unaitas, a Kenyan Savings and Credit Cooperative (SACCO). The project targeted the horticultural sector and aimed to boost profitability for smallholder farmers by reducing input costs and giving them access to financing and agronomic training. 

To provide the smallholders with tailored financing, Unaitas adopted a value chain approach to its agricultural financing strategy and activities. They developed three tailored loan products and disbursed a total of EUR 138,648 to 104 smallholders, including 50 women. 

As a prerequisite for obtaining the loans, 160 smallholder farmers were trained on how to use fertilisers and given agronomic advice by input providers thanks to strategic partnerships between these providers and Unaitas. Under this partnership, the farmers also benefited from reduced input costs thanks to discounted bulk purchases, while the input providers benefited from guaranteed payments, access to new clients and working capital loans from Unaitas. 

The project's success can be attributed to several key factors: 

• the training was tailored to the local Kenyan context;
• top management supported the new approach by assigning a dedicated team to oversee the project;
• it was clearly communicated that Unaitas was to implement the new methodology independently, with limited reliance on external consultants.

Both the impact investor and the investee have followed up the project with further initiatives. Unaitas has since extended its partnerships with input providers and intends to also apply the methodology to the dairy and coffee value chains. At the same time, the impact investor Oikocredit aims to support the broader application of this value chain financing methodology across different investees, thereby increasing financial inclusion of smallholders across Africa.