Firms engaged in the new form of entrepreneurship

Left: Jenrose Wanjala of Butonge in Bungoma County is among farmers who have benefited from the One Acre Fund project. Right: Residents of Ganze. Komaza has had to prove to local communities that the right species of eucalyptus can be successfully grown in arid and semi-arid areas. Photos/FILE

By FLAVIE HALAIS

IN SUMMARY
Operating in Kenya, Rwanda and Burundi, One Acre Fund helps small-size farmers (one to five acres) lift themselves out of poverty by providing them with better inputs.
Founded in 2006, Komaza seeks to help low-income farmers located in arid and semi-arid areas of Ganze district (Kilifi County) increase their revenue through microforestry.
Founded in 2000, Honey Care initially assisted development agencies in helping small farmers increase their income through beekeeping, and has since become an independent, for-profit company assisting its customers in all aspects of the value chain.

ONE ACRE FUND
The organisation

Operating in Kenya, Rwanda and Burundi, One Acre Fund helps small-size farmers (one to five acres) lift themselves out of poverty by providing them with better inputs.

High-quality seeds and fertiliser are made available through a $80 (Sh7,000) loan at the beginning of each planting season, and are delivered by the organisation to rural areas where such products aren’t usually available.

Farmers then have eight months to repay the loan. One Acre Fund also sells other products such as solar lights, mosquito bednets and water purification treatments through the same model.

In addition, it provides training to farmers to help them increase their yields. Results are overwhelmingly positive; on average, farmers double their yields under the financing scheme. Last year, the repayment rate reached 98 per cent.

The business model

While certain social enterprises run as for-profits, One Acre Fund believes firmly that working within the lower end of the market means operating with tight margins that exclude all possibilities of making profits while adequately serving customers.

“We do recognise that we’re serving poor people,” says Nicholas Daniels, the organisation’s Government Relations Analyst. Over the years, One Acre Fund has received donations and support from Draper Richards, the Skoll Foundation, Mulago Foundation, Echoing Green and more. Half of its operating budget comes from donor funding, while the other 50 per cent is provided by farmers.

Challenges

Like many social enterprises in Kenya, finding local talent has been a challenge. Daniels also says the many rules and regulations in the agricultural sector can complicate operations.

Lastly, future growth and plans for market development might be hampered by lack of infrastructure. “That’s where the government needs to step in,” says Daniels.

KOMAZA
The organisation

Founded in 2006, Komaza seeks to help low-income farmers located in arid and semi-arid areas of Ganze district (Kilifi county) increase their revenue through microforestry.

Through a credit programme, Komaza provides farmers with the necessary inputs (seedlings, fertiliser and training) to grow eucalyptus trees on unused parts of their land, and improves access to markets in order to sell trees as charcoal, lumber and more.

The organisation is currently serving over 5,000 farmers. In 2014, Komaza will proceed with its first tree harvest