Leveraging tech for agribusiness

A commitment to leveraging technology for sustainable, inclusive, and resilient agri-business practices is paramount. PHOTO | SHUTTERSTOCK    

By MUNYI NTHIGAH More by this Author

In the heart of Africa, Kenya stands as a testament to the immense potential for growth and development through the

strategic intersection of technology and agribusiness. As the backbone of Kenya's economy, agriculture has long been the source of livelihood for a significant portion of the population. However, to unlock its full potential and ensure sustainable growth, a robust integration of modern technology is imperative.

In recent years, Kenya has witnessed a digital revolution that has transcended urban landscapes and reached the fertile fields of its rural heartland. The penetration of mobile phones and the proliferation of smartphones and internet connectivity have paved the way for revolutionising the agri-business sector, offering innovative solutions to age-old challenges.

One of the key technological advancements in the Kenyan agriculture sector is precision farming which uses data-driven insights, satellite imagery, and sensor technologies to optimise farming. From soil analysis, crop monitoring and irrigation management and studying weather patterns, precision farming empowers farmers with real-time information, allowing them to make informed decisions that increase productivity, reduce wastage and manage risk.

The convergence of these multiple data points offers an opportunity for designing a model for de-risking agriculture and catalysing capital to fund agri-businesses.

The ubiquitous nature of mobile phones in Kenya has not only facilitated communication but has also become a catalyst for financial inclusion in the agri-business sector.

Mobile money platforms have revolutionised digital payment systems, enabling farmers to receive payments, access credit, and engage in financial transactions seamlessly. This, however, has been true for less than five percent of smallholder farmers in Kenya. There is, however, an opportunity to onboard millions of farmers through the application of technology platforms.

The funding gap and inefficiencies in agriculture have given rise to agri-tech start-ups looking to address complex challenges across different agriculture value chains. These innovative platforms are leveraging emerging technologies such as artificial intelligence, blockchain, and the Internet of Things (IoT) to address specific challenges faced by farmers.

From crop disease detection apps to market linkage platforms, quality management and traceability apps these start-ups are helping create solutions that increase productivity and ensure global standards.

Building on the success of digitising agriculture value chains is the emergence of new models of financing smallholder farmers that look to democratise access to finance.

The agri-tech platforms generate data that points to glaring gaps in the financing of various actors in the value chains, this offers an opportunity for developing new financial products that address specific challenges faced by farmers, aggregators and processors.

Kenya, like many other African nations, grapples with the effects of climate change. Technology is now playing a pivotal role in helping farmers adapt to these challenges through climate-smart agriculture.

Drones and sensors are used to monitor weather patterns, while predictive analytics provide insights into changing climate conditions. These tools enable farmers to adjust their strategies, mitigate risks, and ensure a more sustainable and resilient agricultural sector.

Despite these advancements, challenges persist on the path to integrating technology into Kenya's agri-business sector. Limited access to technology in remote areas, inadequate infrastructure, a financially underserved populace and the digital divide pose significant barriers.

However, they also present opportunities for forums for public-private partnerships, government initiatives, and international collaborations to bridge the gap and ensure that the benefits of technology reach every corner of the agricultural landscape.

The intersection of technology and agri-business in Kenya is not merely a trend but a transformative force that holds the key to increasing agricultural productivity and opening up markets for farmers. 

A commitment to leveraging technology for sustainable, inclusive, and resilient agri-business practices is paramount. Through collaboration, Kenya can not only feed its growing population but also become a leading example of how technology can create efficiency and increase income for the millions of smallholder farmers.

The writer is the secretary general of the Association of Fintechs in Kenya and a member of the FINAS2024 Secretariat. m.nthigah@afik.or.ke