AGRA Deepens Pact With Government to Turn Smallholder Farms Into Thriving Businesses

AGRA Deepens Pact With Government to Turn Smallholder Farms Into Thriving Businesses

By Editorial Team.

NAIVASHA, Kenya, Thursday 27 November 2025 – AGRA has renewed its commitment to work closely with the government to drive farmer-centered agricultural growth across the country. The organisation says its new investments align fully with the Bottom-Up Economic Transformation Agenda and county priorities.

AGRA is currently investing USD 29 million, about KSh 3.8 billion, to improve soil health, expand market access, strengthen financing, and support smallholder farmers. It is working with national ministries, county governments, the private sector, and farmer groups to deliver these changes.

AGRA President Alice Ruhweza said Kenya can unlock a thriving farming economy when soil health, markets, and finance improve at the same time. She spoke during a high-level panel at the Intergovernmental Forum for Agriculture in Naivasha.

She added that AGRA focuses on delivery at the grassroots. The organisation has built a network of 506 Village-Based Advisors, and 60 percent of them are women. These advisors support farmers directly and guide them season after season.

AGRA also works through government systems rather than running parallel structures. In 2024, it signed an MoU with the Ministry of Agriculture and Livestock Development to coordinate investments at both national and county level. The agreement supports key government policies on fertilizer, soil health, extension services, and seed systems.

Soil fertility remains one of AGRA’s biggest concerns. The organisation calls it the “hidden engine” of Kenya’s food security. Many productive areas now face acidic and depleted soils, which weakens the impact of subsidized fertilizer. Ms. Ruhweza noted that AGRA helped Kenya host the 2024 Africa Fertilizer and Soil Health Summit and is now supporting counties to implement the Africa Fertilizer and Soil Health Action Plan.

Speaking at the same event, AGRA’s Acting Country Director Davis Muthini stressed the value of strong partnerships. He said collaboration between government and ecosystem players is necessary to solve today’s agricultural challenges. He added that better yields and stronger access to structured markets will raise farmer incomes and support Kenya’s food security.

AGRA is also tackling post-harvest losses, which can reach one-third of production for some crops. These losses reduce incomes and increase food waste. With support from the Green Climate Fund, AGRA is channeling about USD 7 million, nearly KSh 900 million, into climate-smart post-harvest systems. It is backing businesses that offer dryers, shellers, hermetic storage, and warehouse receipt systems so farmers can store produce safely and sell at better prices.

In Makueni County, improved storage for pulses and fruit has helped farmers cut spoilage, earn more, and plan their expenses calmly instead of selling in distress. Many families now use the extra income for school fees and on-farm investments.

Access to finance and youth employment form another key part of AGRA’s work. Agriculture still receives about 5 percent of formal bank lending, leaving many farmers dependent on informal credit. Through partnerships with the National Treasury and IFAD, AGRA supports banks, SACCOs, and microfinance institutions to design products suited to farmers and agribusinesses.

Over the next three to five years, AGRA plans to support at least 2.5 million farmers to adopt climate-smart practices such as improved seed, balanced fertilizer, and resilient agronomy. It also aims to help at least 2 million farmers access climate-smart post-harvest solutions that cut losses and raise incomes, especially for women and youth.

The organisation further plans to strengthen structured markets for at least 100,000 farmers. It will also work to improve the extension worker-to-farmer ratio by blending frontline agents with digital advisory tools that reach more households.

AGRA says its partnership with the government will continue to push for a farming system where smallholder farmers build thriving businesses, boost incomes, and drive Kenya’s food security.

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