The Africa Fertilizer Financing Mechanism has agreed to provide a USD 2 million partial trade credit guarantee and a USD 219,000 grant to Nairobi-based Apollo Agriculture Limited. With the funding aiming to facilitate the distribution of over 7,000 tonnes of fertilizers, to approximately 100,000 smallholder farmers in Kenya.
“Apollo Agriculture is pleased to establish a partnership with the Africa Fertilizer Financing Mechanism to make essential farming inputs accessible and affordable to small-scale farmers, thereby boosting farmer income and Kenya’s food security,” stated Benjamin Njenga, co-founder of Apollo Agriculture Limited.
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The project, spanning from 2024 to 2026, will empower Apollo Agriculture Limited to enhance fertilizer distribution through its network, encompassing 150 retail agro-dealers and 800 village-based agents utilizing digital platforms.
In Kenya, a substantial number of smallholder farmers traditionally obtain fertilizers through informal credit channels, microfinance institutions, and commercial banks with access to fertilizer financing remains a challenge for many farmers who lack tangible collateral. The newly allocated funds will be directed through the Fertilizer Financing for Sustainable Agriculture Management project.
Marie Claire Kalihangabo, Coordinator of the Africa Fertilizer Financing Mechanism, highlighted, “The Fertilizer Financing for Sustainable Agriculture Management project will improve farming productivity by facilitating access and use of fertilizer for smallholder farmers at the last mile, with 50 percent of women among the beneficiaries.”
The fertilizer market in Kenya is characterized by key players such as importers, blenders, and the government, which operates a fertilizer subsidy program. In 2021, Kenya imported 758,000 tonnes of chemical fertilizers, with farmers paying USD 35 for a 50 kg fertilizer bag.
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