The farmers scaling up circular economy one value chain a time

A banana plantation. 

Banana value chain stakeholders are adopting a circular economy approach to minimise waste, maximise profits, and promote environmental sustainability.

A circular economy is an economic system that aims to eliminate waste, reduce pollution, and create value with minimal negative environmental and social impacts.

Last week, stakeholders from the banana value chain participated in a training session on circular economy, learning how to maximise the utilisation of banana plants—from the fruit and peels to the stems and residues.

This training is part of the Circular Economy and Industrial Parks (CAIPS) programme, a joint initiative by the United Nations Industrial Development Organisation (UNIDO) and the Food and Agriculture Organisation (FAO), in partnership with the County Governments of Nyamira and Laikipia.

Funded by the Norwegian government through the Multi-Partner Trust Fund (MPTF), the project seeks to promote sustainable waste management and green transformation.

In Nyamira, banana production is intensive, but for years,  the sector has operated under a linear economic model, where only the fruit is consumed, and the rest of the plant is discarded as waste.

With a total population of approximately 700,000 households, each of them participates in various stages of the banana value chain—from production to consumption, providing a vast opportunity for each household to contribute to the circular economy.

“This means every household engaged in the banana value chain can benefit from circular economy practices,” said Nyamira County Director for Trade and Investment Dominic Barare.

He emphasised that the county government is strengthening cooperatives in the sector to encourage collective action and help farmers leverage economies of scale.

“We are pleased to collaborate with UNIDO, FAO, and the International Organisation for Migration (IOM). Through this partnership, stakeholders are gaining insights into how banana by-products can be repurposed for waste management, economic empowerment, and job creation,” added Mr Barare.

More Than Just Ritoke

Growing up, Ened Charana watched her grandparents and parents harvest bananas in abundance. Some were consumed as ritoke (a local banana dish), while others were eaten ripe. The surplus crop was sold mainly to brokers.

“The banana stems were either fed to livestock or left to rot on the farm. That was the norm,” recalled Ms Charana, a farmer and member of the Nyamira Rural Women Farmers’ Cooperative.

"But now we have realised that bananas offer much more than just the fruit and ritoke.”

Following her training, Ms Charana is now working with other women towards the production of woven baskets and organic manure from banana stems.

At the Manga Banana Cooperative Society, located along the Nyamira-Kisii highway, value addition from banana waste has already begun. Members extract fibre from banana stems to weave baskets.

“We are already selling fibre in Nairobi, and demand is increasing by the day,” said Grace Murungi, the cooperative’s Programme Coordinator.

“Through the Circular Economy in the County Industrial and Aggregation Parks project, members have benefitted from training. My favourite session was learning different dyeing methods, especially the use of organic dyes,” added Ms. Murungi.

Manga Banana Cooperative Society Chairman Benard Oseko noted that the cooperative initially focused on addressing Gender-Based Violence (GBV).

However, they discovered that poverty was a major driver of GBV and sought ways to empower women economically through the banana value chain.

“We, therefore, started exploring ways to create economic opportunities for women using banana-based products,” said Mr Oseko.

Beyond fibre extraction and basket weaving, the cooperative also produces foliar fertiliser and decomposes waste to make organic manure. 

Last year, UN agencies in Kenya—including UNIDO, FAO, and IOM—collaborated with the national and county governments of Nyamira and Laikipia to develop a joint program on circular and sustainable agri-food systems.

The program aims to scale up and reinforce interventions targeting food security, post-harvest loss reduction, waste reintegration, and market linkages to enhance income generation and sustain livelihoods. It focuses on enabling producers to harness opportunities in circular and sustainable farming and business practices while strengthening their resilience to climate change and transitioning to carbon-neutral agri-food systems.

Leveraging the County Aggregation and Industrial Parks (CAIPS), the project seeks to improve food and nutrition security, mitigate climate change, and enhance enterprise competitiveness. It also creates opportunities for producers, micro, small, and medium enterprises (MSMEs), and private-sector investors to adopt sustainable production and value-added practices.

In Laikipia, the programme focuses on circular economy practices within the beef value chain.

“We are advocating for a shift from the linear economy because resources are scarce and must be preserved for future generations,” said UNIDO National Project Coordinator for CAIPS George Ndira.

He highlighted the unsustainability of the linear economy model, where companies extract raw materials for processing and discard the remnants as waste.

“With increasing population and dwindling resources, we must maximise resource utilisation to manage waste sustainably while creating green jobs and mitigating climate change effects,” Mr. Ndira explained.

However, he acknowledged that transitioning from a linear to a circular economy will take time.

Kenya Industrial Research and Development Institute (KIRDI) Research Scientist Lameck Mogire recommended the development of policies on waste management and circular economy.

He emphasised the need for such policies at both the county and national levels to ensure effective implementation.