Farmers Reap Benefits from Modern Farming Approach.
Smallholder farmers continue to underpin Kenya’s food security but remain largely confined to subsistence farming, despite agriculture contributing approximately 25% of the country’s GDP.
Data from the Kenya National Bureau of Statistics (KNBS) indicates that these 5.6 million farmers urgently require quality inputs, tailored advisory services, and affordable technologies to transform their efforts into profitable enterprises.
Challenges Facing Small-Scale Farmers
Entrenched traditional farming practices have left small-scale farmers struggling with hand-to-mouth existence, where surplus produce often goes to waste due to inadequate marketing outlets.
This cycle of poverty, however, may be broken through a German Development Cooperation (GIZ) initiative, which proposes integrating these farmers into an Inclusive Contract Farming (ICF) business model.
The Inclusive Contract Farming Model
The ICF model seeks to incorporate farmers into supply chains managed by competitive SMEs. This approach aims to modernize and professionalize smallholder farming systems, driving growth and higher productivity.
Traditional open-market procurement strategies have struggled to meet consumer demand, but the trust-based ICF models introduced by GIZ offer a mutually beneficial solution.
Adoption in Western Kenya
The concept has gained traction in Western Kenya, where 75% of vegetable farmers have overcome production and marketing challenges by embracing the ICF model.
Grouped under SMEs, these farmers receive advisory services on best practices and are linked with value addition outlets, particularly those led by youth and women groups, ensuring a sustained market for their produce.
The Role of Arianda Farms Africa Limited
Arianda Farms Africa Limited, a youth-led enterprise focusing on African Leafy Vegetables (ALVs), is one of seven SMEs trained under the Agri-Jobs 4 Youth project (2020–2025), which received an investment of 15 million Euros.
The company collaborates with local farmers to ensure safe vegetable cultivation, enhancing their expertise through comprehensive training programs.
Transforming Farmer Output
Mordoch Otieno, Director at Arianda, explained that the company aggregates ALVs from farmers and sells them to consumers. Their deliberate focus on training women and youth has boosted farmer earnings.
Otieno noted that GIZ’s support enabled the company to recruit 3,500 youth and women across six counties—Kisumu, Siaya, Bungoma, Kakamega, Vihiga, and Busia—who now supply vegetables regularly.
Guaranteed Market Access
Through the ICF platform, farmers benefit from guaranteed markets and instant payment for their produce. Otieno highlighted that this stability has improved the company’s ability to meet consumer demand and negotiate new business deals.
The quick payout system has particularly attracted youth, who appreciate the weekly payments for their produce.
Leveraging Technology and Storage
The youth have also contributed to marketing efforts through online platforms, effectively addressing surplus production. Arianda’s traceability system assures consumers of the freshness of their produce, delivered within nine hours of harvest. Currently, the company moves two tonnes of vegetables daily, generating a weekly turnover of KSh 500,000.
They aim to double this output and expand to markets in Nakuru and Nairobi by January. To ensure consistent supply, even during dry periods, Arianda has built a packhouse to store produce for two to three days.
Impact on Youth and Women
The six-month renewable contracts have made vegetable farming attractive to youth with limited income. Emily Atieno, a 25-year-old college student and Arianda beneficiary, shared her success story.
Introduced to the farm four months ago, she now sells 300–350 kgs of vegetables daily, earning up to KSh 10,000 weekly. She has used her earnings to pay college fees, support her family, and employ two assistants.
Building Trust and Expanding Networks
According to Otieno, the trust built with farmers and consumers has enhanced Arianda’s reputation and opened new opportunities. The GIZ’s inclusive contract farming model has enabled over 5,000 farmers to access markets through the seven participating SMEs.
Informal trust-based agreements are expected to grow by 40–50% as the project progresses, signaling a brighter future for Kenya’s smallholder farmers.
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