Fresh produce farmers and traders in Kenya have long struggled with delayed payments that can stretch up to three months, disrupting operations in a sector where timing is critical.
A new financing partnership launched last week promises to change that. The initiative allows suppliers to access cash within hours of delivering their produce, easing the cash-flow crunch.
Avenews chief executive Jonathan Tselon said farmers often wait 30 to 90 days for payments from buyers, forcing many to borrow at high interest rates just to keep their businesses running.
“At the centre of this collaboration is Agri-Supplier Financing, an invoice discounting solution that turns verified invoices into immediate cash,” Tselon said.
“In fresh produce, every hour counts. Access to quick, flexible capital is not a luxury—it keeps the value chain alive.”
The partnership between Avenews and the Fresh Produce Consortium of Kenya (FPCK)allows farmers, aggregators and exporters to convert delivery invoices into instant payments.
This helps them restock, pay workers and meet new orders without delays.
Peter Mwangi, a vegetable supplier in Kiambu county, said; “Sometimes you deliver vegetables and are told to wait two months for payment. Meanwhile, you still need to buy inputs and pay workers. This financing will make a huge difference.”
Agriculture contributes about 22.4 per cent of Kenya’s GDP (Gross Domestic Product is the total monetary value of all final goods and services produced within a country's borders in a specific time period, usually a year or quarter), directly and more than 50 per cent indirectly, employing over 40 per cent of the population.
Horticulture, a key subsector, earned more than Sh150 billion from exports in 2023. However, limited access to affordable financing continues to constrain growth.
FPCK estimates the fresh produce value chain supports more than three million livelihoods directly and indirectly, but cash-flow challenges remain a constant threat.
“A lack of cash means missing the next supply window, which leads to losses,” said a trader at Nairobi’s Wakulima Market.
FPCK chief executive Okisegere Ojepat said the new financing model is particularly important for youth and women joining the sector.
By aligning credit with actual trade cycles, suppliers can now receive payments within hours of verified deliveries. This keeps the supply chain running smoothly and reduces spoilage.
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