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Fertiliser Funding Mechanism Commits $2m To Improve Farmers’ Access

Reports have indicated that the Africa Fertiliser Financing Mechanism will provide a $2 million partial trade credit guarantee and a $219,000 grant funding to Nairobi-based Apollo Agriculture Limited to support the distribution of over 7,000 tonnes of fertilisers to some 100,000 smallholder farmers in Kenya. Between 2024 and 2026, the project will support Apollo Agriculture Limited to sell fertiliser through a part of its network, covering around 150 retail agro-dealers and 800 village-based agents using digital platforms.

Most smallholder farmers in Kenya buy fertilisers through informal credit, microfinance institutions and commercial banks, but challenges remain for farmers to access fertilizer financing as some cannot provide tangible collateral. These new funds will be channelled through the Fertiliser Financing for Sustainable Agriculture Management project.

“The Fertiliser Financing for Sustainable Agriculture Management project will improve farming productivity by facilitating access and use of fertiliser for smallholder farmers at the last mile, with 50 per cent of women among the beneficiaries,” Africa Fertilizer Financing Mechanism Coordinator, Marie Claire Ka- lihangabo said. The fertiliser market’s leading players include importers, blenders, and the Kenyan Government, which runs a fertiliser subsidy program. In 2021, Kenya imported 758,000 tonnes of chemical fertilizers.

Kenyan farmers pay $35 for a 50 kg fertilizer bag. The co-founder of Apollo Agriculture Limited, Ben- jamin Njenga, said: “Apollo Agriculture is pleased to establish a partnership with the Africa Fertiliser Financing Mechanism to make essential farming inputs accessible and affordable to small-scale farmers, thereby boosting farmer income and Kenya’s food security.”

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