Connecting Kenyan SME farmers to export markets through Agrologistics

News item | 03-09-2024 | 06:23

On 4 July, the Embassy of the Kingdom of the Netherlands hosted a pivotal roundtable discussion aimed at unlocking the potential of Kenyan small- and medium-sized farmers by connecting them more effectively to agrologistical chains and export markets. This event, titled "Connecting Kenyan SME Farmers to Export Markets through agrologistics," took place at the innovative co-working space Ikigai Lower Kabete in Nairobi.

Key Stakeholders and Attendees

The roundtable brought together key players in the agricultural sector, including six influential organizations: CBI, Enviu, Green Rhino, Greenspoon, IDH Sustainable Trade Initiative, and SokoFresh. These organizations, each with unique connections to Dutch enterprises or funding, are actively engaged in supporting Kenyan farmers or enhancing agricultural production. Representing the Embassy were members of the Trade & Investment team and the Agricultural Department, underscoring the Embassy's commitment to this crucial sector.

Addressing Systemic Challenges in Kenyan Agriculture

Discussions highlighted the systemic challenges that Kenyan smallholder and medium-sized farmers face in scaling up production. These challenges include fragmented value and supply chains, significant post-harvest losses, and issues with quality control. Additionally, smallholder farmers often struggle with limited access to knowledge, finance, and market signals, while also facing stringent quality standards and due diligence requirements, such as those stipulated by the EU's Corporate Sustainability Due Diligence Directive (CSDDD).

Concerns were also raised about the sustainability of current development programmes. The roundtable questioned the long-term viability of businesses supported by donor funding, and the tendency of these programmes to focus predominantly on supply-side interventions, possibly neglecting the importance of demand-side dynamics.

Rethinking Development Strategies

A call for a paradigm shift in development programming emerged from the discussions. Some participants advocated for a transition from impact-driven objectives, such as climate change mitigation and gender targets, to a model that prioritizes profitability and commercial viability for agribusinesses. This would ensure that support initiatives are not only impactful but also sustainable and market-oriented.

The Role of the Dutch Embassy

In conclusion, the roundtable identified several strategic roles the Embassy could play in fostering the Kenyan agricultural sector. Participants emphasized the importance of the Embassy as a facilitator coordinating efforts, creating networks, and promoting knowledge sharing. Additionally, there was a call for the Embassy to focus on nurturing entrepreneurship within the agricultural sector, potentially through ecosystem-building initiatives. Another suggestion was for the Dutch government to enhance its engagement on the demand side, particularly by increasing Dutch market demand for East African agricultural products, thereby creating a more balanced and sustainable trade relationship.

This roundtable was a critical step in redefining how Kenyan SME farmers can be better integrated into global markets, with the Dutch Embassy positioned as a key enabler in this transformative journey.