Implementation and scaling of climate-smart financing solutions in Kenya's sorghum value chain. Post-investment report
The Kenya Cooperative Development and Investment Program (KCDIP) Sorghum Value Chain Project, implemented under the AICCRA initiative, is transforming the resilience and financial viability of smallholder sorghum farmers in Meru County, Kenya. By introducing an innovative bundled finance model, the...
| Autores principales: | , , , , , , , |
|---|---|
| Formato: | Informe técnico |
| Lenguaje: | Inglés |
| Publicado: |
2024
|
| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/169306 |
| _version_ | 1855536542003494912 |
|---|---|
| author | Wamicwe, Peter Njoroge, Paul Derenoncourt, Ena Newman, Richard Grosjean, Godefroy Mufti, Samaa Girvetz, Evan Bonilla, Osana |
| author_browse | Bonilla, Osana Derenoncourt, Ena Girvetz, Evan Grosjean, Godefroy Mufti, Samaa Newman, Richard Njoroge, Paul Wamicwe, Peter |
| author_facet | Wamicwe, Peter Njoroge, Paul Derenoncourt, Ena Newman, Richard Grosjean, Godefroy Mufti, Samaa Girvetz, Evan Bonilla, Osana |
| author_sort | Wamicwe, Peter |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | The Kenya Cooperative Development and Investment Program (KCDIP) Sorghum Value Chain Project, implemented under the AICCRA initiative, is transforming the resilience and financial viability of smallholder sorghum farmers in Meru County, Kenya. By introducing an innovative bundled finance model, the project integrates input financing, insurance, and mechanization services, reducing climate risks while unlocking private sector investment.
At its core, the initiative focuses on stabilizing farmer cash flows, improving access to finance, and catalyzing private sector engagement. Through strategic partnerships with Shalem Investments, Family Bank, DigiFarm, Kuza Biashara, and ACRE Africa, the project ensures that smallholder farmers receive tailored financial solutions, training, and risk mitigation strategies. In its first phase, 569 farmers received training on Climate-Smart Agriculture (CSA) practices, while 334 accessed financing from a pre-approved USD 520,800 credit line, leveraging concessional funding at a 4:1 mobilization ratio.
Despite challenges such as climate variability, market constraints, and operational hurdles, the project successfully implemented a dual de-risking strategy, combining pest and disease management with parametric insurance, which prevented a 3.35% default rate. The use of trainers-of-trainers (ToTs) overseeing a network of 42,500 farmers highlights the scalability and long-term potential of this approach.
Building on these successes, the October 2024 pilot is set to integrate improved risk management, enhanced private sector financing mechanisms, and irrigation solutions to strengthen year-round sorghum production. This initiative demonstrates a replicable, finance-driven model for resilience, positioning smallholder farmers at the center of climate adaptation, economic stability, and food security. |
| format | Informe técnico |
| id | CGSpace169306 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2024 |
| publishDateRange | 2024 |
| publishDateSort | 2024 |
| record_format | dspace |
| spelling | CGSpace1693062025-11-11T17:05:14Z Implementation and scaling of climate-smart financing solutions in Kenya's sorghum value chain. Post-investment report Wamicwe, Peter Njoroge, Paul Derenoncourt, Ena Newman, Richard Grosjean, Godefroy Mufti, Samaa Girvetz, Evan Bonilla, Osana agriculture climate-smart agriculture finance sorghum bundling The Kenya Cooperative Development and Investment Program (KCDIP) Sorghum Value Chain Project, implemented under the AICCRA initiative, is transforming the resilience and financial viability of smallholder sorghum farmers in Meru County, Kenya. By introducing an innovative bundled finance model, the project integrates input financing, insurance, and mechanization services, reducing climate risks while unlocking private sector investment. At its core, the initiative focuses on stabilizing farmer cash flows, improving access to finance, and catalyzing private sector engagement. Through strategic partnerships with Shalem Investments, Family Bank, DigiFarm, Kuza Biashara, and ACRE Africa, the project ensures that smallholder farmers receive tailored financial solutions, training, and risk mitigation strategies. In its first phase, 569 farmers received training on Climate-Smart Agriculture (CSA) practices, while 334 accessed financing from a pre-approved USD 520,800 credit line, leveraging concessional funding at a 4:1 mobilization ratio. Despite challenges such as climate variability, market constraints, and operational hurdles, the project successfully implemented a dual de-risking strategy, combining pest and disease management with parametric insurance, which prevented a 3.35% default rate. The use of trainers-of-trainers (ToTs) overseeing a network of 42,500 farmers highlights the scalability and long-term potential of this approach. Building on these successes, the October 2024 pilot is set to integrate improved risk management, enhanced private sector financing mechanisms, and irrigation solutions to strengthen year-round sorghum production. This initiative demonstrates a replicable, finance-driven model for resilience, positioning smallholder farmers at the center of climate adaptation, economic stability, and food security. 2024 2025-01-17T04:42:29Z 2025-01-17T04:42:29Z Report https://hdl.handle.net/10568/169306 en Open Access application/pdf Wamicwe, P.; Njoroge, P.; Derenoncourt, E.; Newman, R.; Grosjean, G.; Mufti, S.; Girvetz, E.; Bonilla, O. (2024) Implementation and scaling of climate-smart financing solutions in Kenya's sorghum value chain. Post-investment report. 32 p. |
| spellingShingle | agriculture climate-smart agriculture finance sorghum bundling Wamicwe, Peter Njoroge, Paul Derenoncourt, Ena Newman, Richard Grosjean, Godefroy Mufti, Samaa Girvetz, Evan Bonilla, Osana Implementation and scaling of climate-smart financing solutions in Kenya's sorghum value chain. Post-investment report |
| title | Implementation and scaling of climate-smart financing solutions in Kenya's sorghum value chain. Post-investment report |
| title_full | Implementation and scaling of climate-smart financing solutions in Kenya's sorghum value chain. Post-investment report |
| title_fullStr | Implementation and scaling of climate-smart financing solutions in Kenya's sorghum value chain. Post-investment report |
| title_full_unstemmed | Implementation and scaling of climate-smart financing solutions in Kenya's sorghum value chain. Post-investment report |
| title_short | Implementation and scaling of climate-smart financing solutions in Kenya's sorghum value chain. Post-investment report |
| title_sort | implementation and scaling of climate smart financing solutions in kenya s sorghum value chain post investment report |
| topic | agriculture climate-smart agriculture finance sorghum bundling |
| url | https://hdl.handle.net/10568/169306 |
| work_keys_str_mv | AT wamicwepeter implementationandscalingofclimatesmartfinancingsolutionsinkenyassorghumvaluechainpostinvestmentreport AT njorogepaul implementationandscalingofclimatesmartfinancingsolutionsinkenyassorghumvaluechainpostinvestmentreport AT derenoncourtena implementationandscalingofclimatesmartfinancingsolutionsinkenyassorghumvaluechainpostinvestmentreport AT newmanrichard implementationandscalingofclimatesmartfinancingsolutionsinkenyassorghumvaluechainpostinvestmentreport AT grosjeangodefroy implementationandscalingofclimatesmartfinancingsolutionsinkenyassorghumvaluechainpostinvestmentreport AT muftisamaa implementationandscalingofclimatesmartfinancingsolutionsinkenyassorghumvaluechainpostinvestmentreport AT girvetzevan implementationandscalingofclimatesmartfinancingsolutionsinkenyassorghumvaluechainpostinvestmentreport AT bonillaosana implementationandscalingofclimatesmartfinancingsolutionsinkenyassorghumvaluechainpostinvestmentreport |