Agro traders relieved with partnership for capital

Avenews fintech company's Business Development Director Emmanuel Murai with Enochem Manager Enock Asuga after signing the partnership that will benefit free flow of agro products in the market through advance credit for stocks. [Stanley Ongwae, Standard]

Agricultural traders in Western Kenya will now be enjoying wider business prospects after a financial technology company partnered with a major supplier in the Region to enable them to replace stock on credit.

In the new arrangement, which sets grounds for agro-vets and distributors of agricultural products to continue trading even when they are strained financially.

The partnership between Avenews, a Kenyan-based fintech company, and Enochem, a leading agro-input distributor in the country, has introduced a new embedded financing model that allows agro dealers to access working capital instantly when purchasing stock and repay after selling their products.

This is in tandem with the increasingly difficult operating environment for businesses, especially due to the escalating financial obligations.

According to Fintech’s head of sales, Faith Mwirigi, the collaboration will be aiming at removing the barrier of up-front payment for stock, which, in most cases, makes it difficult for them to fully restock for better turnover.

“Through this initiative, Avenews will continue to strengthen Kenya’s agri-input distribution ecosystem by supporting the retailers who supply farmers with the inputs they need for them to remain productive since access to working capital should match the rhythm of agricultural trade,” Mwirigi said.

When retailers can access stock easily, the entire agricultural ecosystem becomes more responsive and efficient,” Enochem Agrovet’s manager Enoch Asuga said.

“Our agro dealers work closely with farmers every day, and their ability to maintain sufficient stock is critical. By embedding financing directly into the ordering process, we are making it easier for the farmers’ suppliers to restock and keep their businesses moving,” Asuga said.

According to the stakeholders, a lack of sufficient operating capital among agro retailers makes it difficult for farmers to access farm inputs when they need them and in a convenient manner.

“The benefit to farmers is what we have in the broader picture of our partnership. And through this collaboration, we want to ensure that the end user of our products is well supplied,” Asuga noted.