MSEA has formalized a strategic partnership with Kenya Development Corporation (KDC), House of Procurement and Africa Mega Agricorp to enhance cold storage solutions for small-scale farmers. The partnership is set to revolutionize agricultural value chains by facilitating aggregation, enabling better market access, and providing financial support for the operationalization of three cold storage facilities in Meru, Nyandarua, and Kisii counties.
In this partnership, House of Procurement’s implementing partner, CropSoko, will leverage its digital infrastructure and strong grassroots presence to enhance market linkages, ensuring that farmers receive fair prices for their produce.
Africa Mega Agricorp will expandi farmers’ access to both local and international markets by leveraging trade relationships, particularly with buyers in Dubai. The company already supports aggregation and value creation in 23 counties.
Financial backing from Kenya Commercial Bank and Kenya Development Corporation will be instrumental in sustaining and scaling these cold storage facilities. KDC’s Kshs. 2 billion-credit support programs for SMEs, developed in partnership with India’s Exim Bank, along with KCB’s Retailer Finance product, will provide much-needed capital to ensure seamless operationalization.
MSEA CEO Henry Rithaa and House of Procurement General Manager David Wayiera formalizing the broad-based operationalization partnership
MSEA CEO Henry Rithaa and Kenya Development Corporation (KDC) Director General, Ms. Norah Ratemo at the ceremony
MSEA CEO Mr. Henry Rithaa with Africa Mega Agricorp CEO Samuel Mutisya
Speaking at the signing, House of Procurement General Manager David Wayiera underscored the organization’s extensive expertise in procurement and supply chain solutions, emphasizing that this initiative represents a major leap forward for cold storage infrastructure. He highlighted the critical role of well-structured supply chains in ensuring efficiency, reducing food wastage, and maximizing value for small-scale farmers. He further noted that the operationalization of these cold storage facilities would streamline the agricultural value chain, enabling farmers to store perishable produce for longer periods, access better pricing, and reduce their reliance on middlemen. CEO Africa Mega Agricorp Mr. Mutisya reaffirmed the company’s commitment to expanding market opportunities for farmers, particularly by facilitating local and international market access.
CEO of Africa Mega Agricorp, Mr. Mutisya, reaffirmed the company’s unwavering commitment to expanding market opportunities for farmers, particularly by facilitating both local and international market access. He emphasized that the company’s strategic trade relations, such as its partnerships with buyers in Dubai and other global markets, will create a sustainable export pipeline, allowing small-scale farmers to tap into high-value markets. Through these efforts, farmers will not only secure better prices for their produce but also build resilience against market fluctuations, ensuring long-term profitability and sustainability in the agricultural sector.
Speaking during the event, KDC Director General Ms. Norah Ratemo emphasized the corporation’s role in supporting industrial investments that go beyond aggregation, focusing on value addition and long-term sustainability. She congratulated MSEA on spearheading this initiative and expressed hope that more counties would adopt similar models to empower small-scale farmers.
On his part, MSEA CEO Mr. Henry Rithaa highlighted the urgent need for structured economic facilities that directly benefit farmers. He noted that due to inadequate storage, farmers are often forced to sell their produce at half price, with an estimated 33% of crops, such as potatoes, lost at the post-harvest stage. By investing in modern cold storage infrastructure, this initiative aims to address these inefficiencies and boost farmers’ earnings.
Mr. Rithaa emphasized the importance of technology-driven solutions in modernizing agriculture. County aggregation centers will play a vital role in organizing farmers, linking them to markets, and ensuring they benefit from financial and technical support. He urged manufacturers and financial institutions to develop tailored products that support the MSE ecosystem.
With over 215 CIDCs (Constituency Industrial Development Centers) enabling primary value addition at the cottage industry level, MSEA continues to strengthen the County Aggregation and Industrial Parks ecosystem, citing the success of the Kajiado tomato pulping project, which has helped local farmers reduce post-harvest losses while increasing profitability through value addition.
Additionally, Mr. Rithaa outlined MSEA’s flagship initiatives under the Kenya Jobs and Economic Transformation (KJET) program, where the government will provide 70% financing for machinery acquisition to support value addition at the cottage industry level. He also highlighted the ongoing National Youth Opportunities Towards Advancement (NYOTA), a five-year youth grant program designed to boost youth participation in agribusiness.
This partnership marks a significant step toward building a sustainable agricultural ecosystem where farmers, investors, and financial institutions collaborate to enhance productivity, expand market access, and drive economic growth, ensuring farmers receive fair prices and timely payments. Farmers are encouraged to form cooperatives to access government interventions, increase production capacity, and leverage financial support.
MSEA CEO Mr. Henry Rithaa speaking during the ceremony
Financial and implementing partners in attendance at the ceremony
