New Solutions to Old Problems in Kenya Agriculture and Retail Innovation

Kenya, often celebrated as the economic hub of East Africa, is driven by the twin engines of agriculture and retail. While agriculture sustains the livelihoods of millions, and retail serves as a crucial link between producers and consumers, both sectors face significant challenges that hinder their potential to drive inclusive growth. But through Kenya agriculture and retail innovation, new solutions are emerging. Enter FarmWorks and Sevi—two innovative ventures rewriting the rules of engagement in their respective domains, and embodying the potential of Kenya agriculture and retail innovation to transform the country’s economic landscape.

Agriculture is the backbone of Kenya’s economy, employing over seventy percent of the rural population and providing livelihoods for millions. However, the sector faces persistent challenges: limited access to credit, outdated farming practices, and inefficiencies in market linkages. This is where FarmWorks steps in, with a mission to revolutionise farming and uplift smallholder farmers through Kenya agriculture and retail innovation.

At the helm of FarmWorks is Yi Li, the CEO and co-founder. With a strong academic foundation and extensive experience as a management consultant at McKinsey & Company, Li brings a global outlook shaped by her work in the U.S., China, and Kenya. In 2021, she joined forces with Kenyan entrepreneur Peter Muthee to establish FarmWorks. Under her leadership, the organisation is spearheading sustainable farming practices and advancing food security across Africa.

Collaborating closely with over four thousand smallholder farmers, FarmWorks provides access to modern farming inputs, practical training, and guaranteed market opportunities. Its holistic strategy boosts agricultural productivity and raises farmer incomes. Programmes like Farmer Field Schools and the Out-Grower Farmer Support enable farmers to transition from outdated methods to sustainable, climate-smart practices.

The results are striking: ninety percent of farmers report significant improvements in their techniques due to FarmWorks’ support. Meanwhile, eighty percent credit the programme with helping them recover from climate shocks, and 71 percent report increased incomes. Of these, 36 percent have seen notable growth in earnings, coupled with improved food security, underscoring the far-reaching impact of FarmWorks’ initiatives.

One smallholder farmer shared how the training and increased farm production have changed their life: ‘The additional income has helped me better provide for my household, covering essentials like food, clothing, school fees, and other household needs.’

FarmWorks has significantly transformed Kenya’s agricultural value chain through its robust market operations and innovative approaches in agriculture and retail. Operating over twenty local branches and serving more than five thousand market vendors, the organisation ensures a steady supply of high-quality fresh produce to domestic markets, bolstering local economies. Each month, FarmWorks distributes one thousand tonnes of fresh produce locally and exports an additional one hundred tonnes, driving economic growth and sustainability.

Youth Empowerment

Li highlights the importance of a comprehensive approach to agritech: ‘While agritech is widespread in Africa, focusing on areas like agricultural finance, water management, and technological innovations, many companies primarily serve as lenders, offering credit for resources to be repaid post-harvest. True agricultural transformation requires addressing the entire value chain—guiding farmers on what to grow and how to grow it effectively.’

Addressing Kenya’s high youth unemployment, FarmWorks creates pathways in agriculture. Of its more than three hundred and sixty full-time employees, ninety percent are youth, and half are women. The company fosters growth through competitive performance-based rewards and regular training programmes to enhance employee capabilities.

Through its apprentice-focused FarmWorks Institute, 45 young individuals completed residential training in 2020, gaining expertise in irrigation, crop protection, financial management, and post-harvest handling. Many graduates advance to roles as junior technicians on FarmWorks’ mid-sized farms, benefiting from structured career paths that encourage professional development. This practical training bridges the gap between theoretical education and real-world agricultural challenges, driving innovation and professionalism in the sector.

Kelvin Obanda, now an assistant farm production manager at Kilimambogo Farm, reflects on his journey: ‘During my apprenticeship, I learned pesticide application, training techniques, and people management. As a team leader, I developed leadership, planning, and priority-setting skills. Now, I share my knowledge with others. My dream is to become the farm’s director someday. Growing within FarmWorks as it expands brings me immense satisfaction.’

FarmWorks actively promotes gender inclusivity, recognising women as essential contributors to Kenya’s agricultural sector. The Out-Grower Farmer Support Programme provides women, often excluded from critical resources, with inputs, training, and market access. This empowers them to achieve financial independence and enhance household well-being.

The programme also prioritises young women in technical training, breaking barriers in traditionally male-dominated roles. By challenging societal norms, FarmWorks strengthens the resilience and productivity of farming communities. Miriam Gathigia Kibuchi, treasurer of FarmWorks’ Mugumo production unit, shares her story: ‘I began farming with FarmWorks in 2022 and was elected treasurer through a ballot vote. As a woman, I am respected in my role.’

Market Access

Yi Li underscores a pressing challenge in Kenya’s agricultural sector: ‘Kenya has one of the world’s most fragmented fresh food supply chains. About eighty percent of food is sold through open-market traders, supported by thousands of brokers delivering inconsistent quality. We have established a sourcing, grading, and distribution infrastructure, positioning ourselves as the most consistent and largest supplier of quality produce in Kenya.’

The FarmWorks model revolves around regional collection centres, which act as hubs for smallholder farmer clusters. These hubs oversee production and provide extension services, enabling farmers to focus on cultivation without significant upfront costs. By collaborating with SMEs in logistics, inputs, and retail, FarmWorks streamlines the supply chain, reducing inefficiencies and mitigating market risks.

Susan, a market vendor in Kangemi, expresses her satisfaction: ‘With FarmWorks, you cannot lose. They provide good quality and service. It is convenient because their store is nearby. My customers are happy now.’ Yi Li emphasises the critical role of operational discipline: ‘We serve both the farmer and the market. Our focus on operational discipline is relentless. Technology and data enable us to scale and deepen our impact. Simple, effective tools help us capture real-time data, reduce waste, implement dynamic pricing, and foster trader loyalty.’

Despite its achievements, challenges persist. Yi Li highlights: ‘We operate in a market lacking data, processes, and efficiency. Entrepreneurs must design fit-for-market solutions rather than importing models suited to more developed markets but ineffective in Africa.’ FarmWorks advocates for greater public sector involvement, particularly in infrastructure development.

Improving road access to farms and minimising duplicated business costs across counties would significantly enhance the agricultural value chain. By combining Kenya agriculture and retail innovation with sustainable farming practices, youth empowerment, gender equality, and technological innovation, FarmWorks is positioning itself as a transformative force in Kenya’s agricultural landscape.

As agriculture thrives, the need for efficient retail distribution becomes increasingly evident. Small-scale retailers, the backbone of Kenyan communities, face significant challenges—chief among them, cash flow constraints that limit their ability to stock inventory and meet customer demand. This is where Sevi, a fintech startup, steps in to bridge the gap.

Retail Transformation

Sevi, an ‘Order Now, Pay Later’ fintech venture, is transforming Kenya’s financial landscape by tackling the financing hurdles faced by micro and small businesses (MSMEs). Founded by Dutch entrepreneurs Walter aan de Wiel, a seasoned creator of impactful social enterprises, and Bartel Verkruijssen, a technologist specialising in innovative digital solutions, Sevi is redefining access to finance.

The startup operates on the belief that accessible financing is more than a business opportunity—it is a critical driver of economic growth and development. With a vision rooted in empowering MSMEs, Sevi addresses the cash flow challenges that often impede their growth, contributing to a more resilient and thriving economy.

Sevi is transforming Kenya’s retail sector, a critical pillar of the country’s economy dominated by a vast network of small shops and kiosks. These MSMEs, which account for approximately eighty percent of consumer goods distribution, often face significant challenges due to limited access to credit, stalling their growth potential.

Sevi addresses this gap through an innovative digital app that allows businesses to purchase stock on credit with ease. Retailers can buy products and pay in instalments, while suppliers receive payments immediately upon delivery. This approach alleviates financial pressure on retailers while ensuring consistent, reliable payments for suppliers.

Central to Sevi’s model is a cutting-edge digital platform powered by advanced artificial intelligence. The platform performs swift and accurate credit assessments, evaluating the creditworthiness of retailers based on data-driven insights. This AI-driven system minimises risks, enabling financing decisions that benefit all parties.

Retailers gain the advantage of flexible payment plans, and suppliers enjoy the assurance of payment on delivery, creating a seamless and mutually supportive ecosystem. Walter highlights the mission driving their efforts: ‘Our goal is to build trust within the retail ecosystem and open doors for small businesses to thrive. By providing access to credit and streamlining the supply chain, we empower retailers to expand their inventory, improve cash flow, and achieve sustainable growth.’

This mission is backed by clear results, with many retailers seeing improvements in financial stability and business performance within months of using Sevi’s solutions. One example is Diana Wanja Mugo, a retailer who turned to Sevi during a tough financial period. Reflecting on her experience with Kenya agriculture and retail innovation, she says, “Sevi provided a lifeline when I needed it most. Their credit system helped me stabilise cash flow, restock my inventory, and regain a foothold in the market.”

Her story mirrors the experiences of many others who credit Sevi with enabling them to make strategic investments, such as hiring staff, expanding their retail spaces, and upgrading equipment. These success stories underscore Sevi’s impact in fostering growth and resilience within Kenya’s retail landscape.

The impact is measurable: a recent sample survey revealed that thirty percent of MSMEs supported by Sevi reported expanding their workforce within a year, creating job opportunities for young people in their communities.

Women Rising

Women entrepreneurs, who represent a significant share of small shop operators in Kenya, often face systemic barriers in accessing traditional financing. Many are required to seek male approval to open bank accounts or secure loans, leaving them disproportionately excluded from formal financial services.

Sevi’s digital platform addresses these inequities by offering women independent access to credit, bypassing traditional gatekeepers. Women now comprise 55 percent of Sevi’s active users, demonstrating higher loan repayment rates and a strong tendency to reinvest in their businesses and communities.

Walter notes that Sevi’s model is also reshaping household dynamics, enhancing women’s autonomy and decision-making power. An upcoming impact study will explore these broader social effects, including how reduced travel for daily stocktaking contributes to improved safety for women entrepreneurs.

Sevi’s credibility and dedication to ethical practices are solidified by its regulatory approval from the Central Bank of Kenya, reflecting its commitment to robust financial standards and responsible fintech operations. The startup further collaborates with key industry stakeholders, including the Licensed Digital Credit Providers Association, to create an enabling ecosystem for its initiatives.

Walter underscores the critical role of international institutions in de-risking investments, enabling local banks to support fintechs like Sevi and scale their transformative impact. Looking ahead, Sevi has ambitious plans to expand into neighbouring markets, aiming to replicate its success across the region. By scaling its operations, the company seeks to drive inclusive economic growth and empower small businesses to reach new heights.

FarmWorks and Sevi represent two sides of the same coin—addressing critical gaps in Kenya’s socio-economic ecosystem. While FarmWorks revitalises agriculture by equipping farmers with the tools and knowledge to thrive, Sevi ensures the retail sector remains robust and inclusive, providing essential financial support to small entrepreneurs.

Their combined impact offers a compelling blueprint for sustainable development. As FarmWorks boosts agricultural productivity through Kenya agriculture and retail innovation, it creates a ripple effect that strengthens the supply chain, benefiting retailers who depend on a steady stock. At the same time, Sevi’s innovative credit solutions support the retail sector, making sure the products of agricultural work reach consumers smoothly and efficiently.

Edited by “Pius Okore”