Let's make farming sustainable through innovative funding

According to recent studies, farms utilising precision agriculture techniques have reported yield increases of up to 15 - 20 per cent, coupled with a significant reduction in input costs. In Kenya, use of drones for crop monitoring, pest control, and precision irrigation is already showing promising results. Subsequently, use of mobile-based advisory services has led to a 15 per cent increase in maize yields and a 10 per cent reduction in input costs.

However, the adoption of these varied technologies remains limited, especially among smallholder farmers who form the backbone of Kenya’s agriculture. To bridge this gap, public-private partnerships must be strengthened to subsidise cost of technology and provide training to farmers. Organisations such as Food and Agriculture Organisation (FAO), Technoserve and AGRA; are working to bridge these gaps by promoting technology adoption and farmer training through their platforms, programmes and partnerships.

To attract investment into Kenya’s agricultural sector we require innovative funding models that align financial returns with social and environmental impact. Impact investing, which focuses on generating measurable positive outcomes alongside financial returns, is one such model that can mobilise private capital for agricultural development. The global impact investment market is estimated at over $1 trillion, and tapping into this growing pool of capital could significantly bolster our agricultural sector.

Despite progress in expanding access to financial services, only about 10 per cent of Kenyan smallholder farmers have access to formal credit. This limits their ability to invest in productivity-enhancing inputs, equipment, and technology.

Expanding digital financial services, including mobile money platforms, can bridge this gap, enabling farmers to access credit, insurance, and savings products tailored to their needs.

The writer is an investment expert