Under the USAID Kenya Horticulture Competitiveness Project (KHCP), FCI staff offered pre-credit training for farmers in the Kadem area, Nyanza region. This action was precipitated by FCI’s understanding that smallholders in Africa often lack the startup capital required to make the initial investment for their desired agro enterprise to kick off. As a result of the training, these farmers, who ordinarily would not qualify under the stringent credit market conditions were offered credit with a minimal interest rate of 10% for 18 months on assets, and 10% for four months on farm inputs. What a deal!

Farmers were trained on the meaning of credit and its uses, equipped with the required knowledge and skills to enable them to use credit to attain profit, to teach the smallholder farmers the merits and demerits of credit, introduce farmers into commercialization through CVM and teach them on collective marketing.

Farmers were trained on specific facets of money and how credit works. In particular, they were taken through money functions, investments, loans, marketing, financial planning, record keeping, risk management, smallholder commercialization through CVM, and an implementation plan to exercise what they learned.

The training bore fruit as several key achievements were recorded by the FCI team. Firstly, the training led to the establishment of LIDIP Commercial Village, including its structures, as the participants were intrigued by both the concept and benefits of collective marketing. Secondly, the groups’ representatives, namely the chairmen of the sub committees of the commercial village, applied for loans, now freshly equipped with the knowledge of how credit can be beneficial to their soon-to-be farm enterprises when prudently managed. Indeed six commercial producer groups (CPGs) immediately qualified for loans worth Ksh 1.850 million (USD 21,764) in the form of water pumps, plastic water tanks, pipes of different types and sizes, farm inputs including seeds and chemicals, day old chicks, wire mesh and barbed wire.

Through this training and other similar ones, the smallholder farmers, who had themselves been farming for between one to five years prior to partnering with FCI, were able to see a glimmer of light for their activities. Previously unknown to FCI staff was that these farmers had been hoping for a chance to participate in their market environment but various constraints made that an impossible fete. Going forward, the farmers have an opportunity to enjoy credit facilities, and commercialize.

Mr. Samson Yewa is one of the longest cereal traders in Awendo market of Migori County having been in the business for more than ten years. Mr. Yewa has been faced with myriad challenges in the business especially low supply of cereals during the off season and poor quality produce by farmers. This had forced him to source the product from Uganda and Tanzania leading to low profit margins.

“Some time it was difficult when clients would place orders and I had to travel to Uganda or Tanzania to source for the grains. I am now happy with the progress I am making because I can now source grains within migori County” says Mr Yewa.

In 2015, Yewa participated in a market forum organized by USAID KAVES through Farm Concern International with the aim of linking buyers to KAVES farmers. Mr. Yewa was very excited about the deliberations of the forum and took no time to ponder his next move but immediately agreed to partner with Farm Concern International in sourcing cereals from KAVES farmers who were aggregating at different bulking centers. This was the long awaited moment for him to solve his predicament in sourcing good quality grains while minimizing costs.

“I was ready to take any risk; I collaborated with KAVES who linked me to Village Aggregation Centers that were doing maize and sorghum production. I had fears at the beginning but with time all my fears vanished and I am a strong advocate of sourcing farm produce at Village Aggregation Centers’’ Says an elated Mr. Yewa.

The trader has profiled himself as the king of cereal traders in Awendo market in a span of six months. “Initially I used to supply 30 bags of grains per week but right now I supply more than 100 bags to retailers per week. KAVES has linked me to various village stores in Uriri, Kuria West and Kuria East sub-counties where I can source maize and sorghum at any time and I can consistently satisfy my orders,” Say Mr Yewa.

Yewa recently bought a motorbike which helps him to collect grains from the nearby Village Aggregation Centers. His eyes are set on enlarging his distributorship and ultimately growing into a major cereals supplier in Africa. He says “It’s all about making sure you have ample stock and being dependable and having clear focus about what you want to achieve.”

Farm Concern International (FCI), with funding from USAID-Kenya Horticulture Competitiveness Programme (USAID-KHCP) implemented activities aimed at improving smallholder farmers’ competitiveness in horticultural productivity and market access for enhanced incomes and improved nutrition and livelihoods. The KHCP project was implemented through five strategic pillars; commercialization, market development, community nutrition, youth and women integration in agro-enterprises as well as participatory monitoring and evaluation.

Commercialization and development of market access for small holder farmers impacted and transformed livelihoods and households in diverse ways such as; an increased number of youth and women were introduced to alternative and rewarding livelihoods through production of vegetables; more smallholder farmers developed partnerships with local buyers within immediate and distant markets for sales of horticulture produce which saw both farmers and traders realizing increased income; increased incomes enabled savings accumulation and banking with formal banking systems; and enhanced household access to vegetables thereby contributing to improved nutrition for household members. One of the beneficiaries of FCI’s intervention was Bar Kopondo Women group in Western Kenya. Bar Kopondo Women group, under the leadership of Joyce Oile, began with 17 members but now has a total of 28 members and still counting. The group was formed to take care of member’s welfare issues and emergencies ranging from financial to social such as loss of loved ones and baby showers. However, the group did not have guidelines on how to operate, lacked income generating activities and focus to achieve their desired goals.

Through FCI intervention, the group fortunes turned around for the better as they were trained on group dynamics, savings and commercialization through the Commercial Village model (CVM). The training sessions motivated the group members to start growing Traditional African Vegetables (TAVs) and kales for sale to schools and informal traders from Migori town.

Following the review of the group constitution, the group has been registered with the Ministry of Social Services and now operates as a legal entity. Additionally, the savings and microfinance sub-committee within the CV has mobilized members to contribute Ksh. 50 (USD 0.56) every month for lease of more land for TAVs commercialization. The Executive Committee in charge of the CV has been trained in record keeping and is now able to keep clear saving records of every member, agronomic skills and business plan development and commercialization through the CV model. The group confesses that input acquisition and extension services has improved tremendously following strategic relationships developed by FCI.

Besides, TAVs and kales, the group also produces Orange Fleshed Sweet Potatoes (OFSP). Mama Regina, who is a member of the Bar Kopondo group has been growing OFSP and selling to the local traders (informal markets) for income generation. Bar Kopondo Women group intends to be a fully-fledged CPG that will eventually evolve into a Commercial Village trading in TAVs and other commodities. Their future plans involve engaging in other income generating activities such as purchasing tents and chairs for hire during social gatherings within the community. They also intend to write a winning proposal to the Women Fund for funding to enable them diversify their activities into poultry and dairy farming.

Siteko Commercial Village in Western Kenya started in 2013 after commercialization campaigns by Farm Concern International under the USAID Kenya Horticulture Competitiveness Programme.

Mabale Commercial Producer Group is part of Siteko Commercial Village in Busia County. In 2010, the group received assistance from the Ministry of Water and Irrigation to install an irrigation system covering an area of approximately 300 acres. However, the irrigation system remained idle and unutilized because the group did not have market information on commodities. The farmers had tried several times to plant kales, but the gluts made them vulnerable to market brokers as a result of poor production scheduling.

The group consists of 25 members, 11 males and 14 female including four youth members. 2013 was the turning point for the Group after attending commercialization training by Farm Concern International. FCI trained the members on market trends and production planning for assorted vegetables targeting markets in Busia County. Armed with this information from the markets, the farmers committed themselves to the market information provided and together with FCI, developed a planting calendar to respond to premium priced seasons identified in the market. The group has since established six acres of kales planted at varied stages to ensure consistent supply in meeting their customers’ demands.

As a result of production planning, farmers from the Commercial Producer Group are now able to target and meet market requirements, leading to an income of Kshs 30,000 (USD 335.57) per month in sales.

The farmers have been linked to St. Mathias Secondary, Our Lady of Mercy Girls and other schools based in Busia town. In addition, to the group’s current turnover of approximately Kshs 30,000 (USD 335.57) per month, the members hope to double this with the increased marketing support they are receiving from Farm Concern International.