- Dealers involved in agri-SMEs will get financial backing of up to KSh 2.5 billion from Avenews.
- The firm, established in 2017, stated that the funding initiative will boost and transform the industry.
- Emmanuel Mutai, Avenews' Country Manager, stated that these groundbreaking financial offerings fill the void present within the agricultural business sector.
Kenyan entrepreneurs involved in agricultural small and medium-sized enterprises (SMEs) can now obtain funding from Avenews.
The fintech disrupting agricultural finance introduced a KSh 2.5 billion funding initiative aimed at supporting agri-small and medium-sized enterprises (SMEs) in Kenya.
Why does agribusiness in Kenya require funding?
The firm that began operations in 2017 has been revolutionizing the agricultural supply chain within the nation by offering cutting-edge financial solutions.
Avenews, with a name that signifies “new pathways for funding agri-SMEs,” provides customized digital financial solutions designed specifically for small and medium-sized enterprises within the agriculture sector throughout Africa’s supply chain.
Emmanuel Murai, the Avenews Country Manager, emphasized the company’s significant influence due to their key offerings: the Agri-Credit Line, Agri-Supplier Financing, and Agri-Buyer Financing.
"These products are revolutionizing Kenya’s agricultural lending sector. Early market feedback indicates that we aren’t merely causing ripples in Kenya; instead, we’re establishing the groundwork for a significant transformation throughout Africa," stated Murai in a press release viewed by .co.ke .
This launch occurs during a crucial period for agriculture within the Sub-Saharan African region.
As stated in a report by Aceli Africa, the area encounters an annual agricultural financing shortfall of $180 billion (KSh 23.3 trillion). Notably, $65 billion (KSh 8.4 trillion) of this amount is required particularly to assist agri-SMEs.
Even though agriculture forms a crucial part of Kenya’s economy, contributing 34% to the country's GDP and offering employment through one in every ten formal jobs, the sector receives merely 3.53% of private sector loans, amounting to KSh 134.2 billion from a total of KSh 3,797.5 billion. This information was highlighted by the Central Bank of Kenya (CBK) in their latest report.
How Avenews Closes Financial Gap for Agri-SMEs
Murai stated that Avenews aims to close this gap by utilizing technology and innovation to offer customized financial services for enterprises throughout the agricultural supply chain, as Murai elaborated.
"By closing the $65 billion funding gap in Africa's agribusiness industry, we ensure that these businesses, along with their suppliers and purchasers, receive the necessary financial support for expansion," he noted.
The CBK’s November 2024 Agriculture Sector Survey Report indicates an enhancement in credit accessibility within the agricultural sector. This progress can be partly attributed to digital lending platforms, which efficiently serve enterprises along the agricultural supply chain in distant regions where traditional banks or Saccos do not have physical presence.
In this regard, Avenews' proactive participation in this field, having invested more than 2.5 billion shillings in loans to Agri-SMEs within the agriculture supply chain, will effectively close this gap by offering financial support to agritrade. This initiative will enhance productivity and promote sustainable development.
Jonathan Tseelon, CEO of Avenews, highlighted the design of their solutions, noting that unlike other sectors, agriculture follows its distinct cash flow cycle.
To tackle these challenges, we've crafted our products to align with this pattern and specifically cater to the distinctiveness of the agricultural sector.
“At Avenews, our goal is simple: to provide agri-SMEs with quick, easy access to financing so they can improve cash flow, increase inventory, strengthen operations, and grow sustainably. This isn’t about funding at all—it’s about equipping businesses to thrive in a sector that feeds nations and drives economies,” said Tseelon.
Representing the government, Mr. Moses Kimani, Advisor to the PS State Department of Livestock Development, further highlighted the crucial role of value chain financing models in ensuring seamless access to credit for agribusinesses, processors, and markets
“The introduction of innovative Agri-Trade financing products by Avenews holds transformative potential for the agricultural supply chain, paving the way for expansive developments beyond Kenya to otherregions in Africa,” he said.
He mentioned that this partnership aligns with government initiatives aimed at boosting Kenya's agricultural sector for greater efficiency and wider participation.
The launch event was attended by key stakeholders and partners from the agri-tech, finance, and supply chain ecosystem, including the East Africa Grain Council, Dr. Anastasia Kagunyu from Kenya Agricultural & Livestock Research Organization (KALRO), and Munyi Nthiga, Chief Growth Officer at Ketha. Africa exemplifies the collaborative efforts aimed at driving positive transformation and economic prosperity within the agricultural sector.
