Thousands of smallholder dairy farmers across Kenya are poised to benefit from a new digital platform designed to ease their access to loans by creating trusted financial records from daily farming activities.
Traditionally, farmers like Mary Wanjiru from Githunguri, Kiambu County, have struggled to secure bank loans due to lack of conventional collateral such as land titles. This challenge may soon diminish with the launch of the Farmer Visibility Project, a collaboration between Heifer International Kenya, Mastercard, KCB Foundation, and KCB Bank Kenya.
Digitising Farmer Transactions
The project aims to digitise various farming transactions including milk sales and input purchases, enabling farmers to build a verifiable financial history. According to Wairimu Munyinyi-Wahome, Heifer International Kenya's country director, this data will help financial institutions better assess farmers' creditworthiness beyond traditional collateral.
"Many farmers are productive but excluded from credit due to reliance on physical assets. This initiative will change that by treating transaction records as proof of viable business," she explained.
Pilot and Expansion Plans
The Sh32.5 million pilot targets around 280,000 farmers initially in Kiambu, Uasin Gishu, and Nandi counties. The program will test and refine the model before nationwide rollout.
Commercial Partnership for Sustainable Impact
Mastercard's Daniel Huba emphasized that the initiative is a commercially sustainable partnership, not donor-driven. The goal is to make farmers' daily transactions visible and traceable, gradually reducing dependence on physical collateral.
"Over time, digital transaction records could become a form of collateral, enabling farmers to secure loans more easily," Huba said.
Focus on Women and Youth
KCB Foundation managing director Mendi Njonjo highlighted the project's focus on women and young farmers, groups that often face greater financial barriers.
"Addressing access to capital for these groups will unlock their full potential in agriculture," she noted.
This digital platform represents a significant step toward integrating smallholder farmers into Kenya's financial system, fostering economic growth and agricultural development.
