Gov't, private sector in partnership to enhance cold storage facilities for small-scale farmers

The formalization of the partnership was attended by Kenya Development Corporation (KDC) Director General Ms. Norah Ratemo, House of Procurement General Manager David Wayiera, Africa Mega Agricorp Interim CEO Samuel Mutisya, Kenya Commercial Bank (KCB) Product Design Manager David Chesire and members of the MSEA management team.

During the meeting, MSEA CEO Mr. Henry Rithaa emphasized the Authority’s structured economic programs aimed at directly benefiting farmers. He highlighted the government’s commitment to fostering private sector investments in cold storage infrastructure across the three counties.

Many farmers currently face the challenge of selling their produce at a fraction of its value due to a lack of adequate storage, with up to 33% of crops, like potatoes, being lost post-harvest. This new initiative seeks to address these issues by providing modern storage solutions, ensuring farmers can better preserve their produce.

Mr. Rithaa also stressed the importance of technology in transforming agriculture, enabling farmers to increase productivity and improve earnings. He pointed out that county aggregation centres will play a critical role in organizing farmers and connecting them to markets.

Additionally, he discussed MSEA’s initiatives to support key investments through KJET, where the government offers 70% financing for machinery acquisition to boost value addition at the cottage industry level. Mr. Rithaa also highlighted NYOTA, a youth grant program set to run over the next five years to encourage youth participation in agribusiness.

"I urge manufacturers and financial institutions to develop tailored products that support the MSE ecosystem. With over 215 CIDCs, MSEA supports primary value addition at the cottage level, which feeds into County Aggregation and Industrial Parks," said Mr. Rithaa.

David Wayiera, Manager at House of Procurement, confirmed the company’s expertise in procurement, supply chain management, and the operationalization of cold storage facilities.

"Through our partnership with CropSoko, we will leverage their strong presence on the ground and digital infrastructure to enhance market linkages for farmers," said Mr. Wayiera.

Africa Mega Agricorp CEO, Mr. Mutisya, reaffirmed his company’s commitment to expanding market opportunities for farmers, both locally and internationally. He noted the company’s established trade relations with markets like Dubai and highlighted its support for 23 counties in aggregation and value creation, helping farmers secure better prices and access to markets.

KDC CEO Ms. Ratemo reiterated the corporation’s support for industrial investments, particularly those focused on reducing post-harvest losses.

She emphasized the need for providing machinery and financial solutions that go beyond aggregation, encouraging investors to focus on value addition. Ms. Ratemo congratulated MSEA for this initiative and expressed hope that other counties would adopt similar models to benefit small-scale farmers.

Both KCB and KDC are set to play a pivotal role in providing financial products tailored to the operationalization of these cold storage facilities, such as KDC’s credit support program for SMEs, developed in partnership with India’s Exim Bank, and KCB’s Retailer Finance product.