Twiga Foods, IFC, KCB partner on $30 bn support to farmers
Twiga Foods and IFC’s Global SME Finance Facility are set to be part of an investment of up to Kshs 3.2 billion
October 29, 2020: Twiga Foods and IFC’s Global SME Finance Facility are set to be part of an investment of up to Kshs 3.2 billion ($30 million) through unfunded risk sharing facilities (RSFs) with Tier 1 commercial banks with the first phase being led by Kenya Commercial Bank (KCB).
IFC’s Global SME Finance Facility’s proposed investment would enable IFC and Twiga Foods to reach medium scale farmers, mainly SMEs and very small enterprises (VSEs) with limited banking, limited operating track records or lower levels of collateral. This initiative seeks to support over 300 irrigated medium-scale contract farmers to complement Twiga’s seasonal smallholder farmer supply base. This will stabilise year-round fresh fruit and vegetable volumes in line with Twiga Foods mission of supplying readily available safe, affordable, and high-quality food to Kenya’s urban markets.
Peter Njonjo, Twiga’s CEO and co-founder mentioned that this initiative lines up strategically with the government of Kenya’s Agricultural Sector Transformation and Growth Strategy, which aims at boosting food security in the medium term through modernizing and scaling of commercial farming for the domestic market.
In November 2018, IFC, TLcom, and the Global Agriculture and Food Security Program (GAFSP) announced a $10 million investment in Twiga Foods.