Building Producer Capacity for Climate-Resilient and Competitive Value Chains
Under this component, the project focuses on strengthening the capacity of smallholder farmers and their institutions to enhance sustainable productivity, climate resilience, nutrition-sensitive production, and market participation. The component supports improved access to credit, quality inputs, and digital and extension services to enable farmers to participate more effectively in priority value chains.
Through NAVCDP, community institutions are being strengthened through targeted community investments and extension services to contribute to the Project Development Objective of increasing market participation and enhancing value addition for smallholder farmers in selected counties across Kenya. Farmers are organized into Community Interest Groups (CIGs), Vulnerable and Marginalized Groups (VMGs), and Individual Producers (IPs), which are federated into Farmer Producer Organizations (FPOs) and linked to SACCOs to access affordable financial services.
Implementation is through farmer capacity-building investments and e-voucher support, FPO-level value chain investments, and interventions aimed at improving the creditworthiness and bankability of CIGs, VMGs, and FPOs.
Here the focus is on strengthening smallholder farmers’ capacity for climate-resilient production, improved productivity, and enhanced market participation. This is achieved through farmer-level extension and training on climate-smart Technologies, Innovations, and Management Practices (TIMPs), complemented by demonstrative micro-project investments that reinforce the adoption of these practices.
Registered farmers are supported to access e-vouchers for quality and climate-resilient inputs and are linked to the project’s big data platform for the dissemination of agro-weather information, market intelligence, and advisory services. Individual farmers and CIGs are also linked to SACCOs to access credit for small-scale infrastructure investments that support primary aggregation and value addition.
To date, approximately 3.8 million farmers are receiving e-voucher support under this sub-component.
This sub-component strengthens farmers’ capacity for aggregation, value addition, and collective marketing through well-governed and commercially oriented Farmer Producer Organizations (FPOs)...
Eligible FPOs are receiving grants to address critical gaps along priority value chains...
EDPs enable FPOs and their members to access high-quality and climate-resilient inputs...
As a result of these interventions, targeted FPOs are recording increased annual sales turnover...
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The project is improving access to affordable financial services for project beneficiaries to support the adoption of climate-smart Technologies, Innovations, and Management Practices (TIMPs), modern irrigation technologies under Farmer-Led Irrigation Development (FLID), and food system incubation technologies. These investments are strengthening productivity, improving cash flows, and accelerating the commercialization of priority value chains.
Individual farmers and CIGs/VMGs/IPs are mobilizing savings through SACCOs, which serve as the primary channel for accessing matched loans. To strengthen the SACCO ecosystem, Financial Inclusion Grants (FIGs) are provided to eligible SACCOs to support institutional establishment and capacity development, while Financial Matching Grants (FMGs) are supporting the creation of revolving loan funds for onward lending to farmers and producer groups.
Currently, approximately 500,000 farmers are accessing affordable financial services through Agri-SACCOs.