Posted on May, 13, 2025 at 06:11 pm
A new report by Aceli Africa and Dalberg has spotlighted Kenya as a frontrunner in unlocking credit access for smallholder farmers, following the success of a blended finance model piloted by agri-tech firm Hello Tractor and Heifer International.
The initiative, launched in Kenya and expanded to Rwanda, Uganda, Tanzania, and Zambia, has shown that combining concessional capital with local innovation and after-sales support can deliver both financial returns and social impact.
According to the 2024 Aceli Financial Benchmarking Report, which analyzed over 32,600 loans worth $1.98 billion disbursed between 2020 and 2023, Hello Tractor outperformed traditional lenders across key metrics in Kenya and beyond.
Hello Tractor’s approach centers on asset-based lending, enabling farmers and entrepreneurs to access tractors through a pay-as-you-go model. With support from Heifer International, local youth have been trained as technicians to manage after-sales service hubs, ensuring high equipment uptime and lender confidence.
Of the 88 loans facilitated through a $2.5 million investment by Heifer, 76 percent were between $50,000 and $200,000, demonstrating the scalability of smallholder mechanization. The loans achieved a 100 percent repayment rate among first-time borrowers in Kenya, further validating the model’s viability.
Following Kenya’s early success, the model has been rolled out across Rwanda, Uganda, Tanzania, and Zambia.
“This report validates our belief that rural communities, especially in Kenya, are investable,” said Adesuwa Ifedi, Senior Vice President for Africa Programs at Heifer International.
“By blending innovation, trust, and local execution, smallholder farmers can drive Africa’s agricultural transformation.”
Hello Tractor CEO Jehiel Oliver added that the Mechanization for Africa Initiative, driven by this partnership, proves that smallholder farmers are both viable and bankable with the right financing tools and technical support.
Source: Capital FM