In Kenya, smallholder farmers constitute approximately 75% of the agricultural workforce. Unfortunately, they constantly face challenges that impede their productivity and economic well-being. One issue is the delay in receiving payments for their produce. After delivering their harvested crops to cooperatives, farmers often endure prolonged waiting periods before receiving compensation. Addressing this critical issue is VunaPay, an agritech startup founded by Gatwĩri Njogu-Mokaya in 2023.
VunaPay offers a unique solution by providing instant payment services to smallholder farmers upon the delivery of their produce. This technological approach guarantees transparent and prompt payouts, ensuring farmers receive fair compensation without delay. Before its inception, many farmers were forced to sell their produce to middlemen at reduced prices or seek high-interest loans to meet immediate financial needs due to deleted payments. This hampered their ability to reinvest in their farms, perpetuating a cycle of poverty and low productivity.
For close to two years, VunaPay has made significant strides in supporting the farming community. The platform has onboarded over 15,000 farmers, with an additional 98,000 on the waitlist, eager to benefit from its services.
So far, VunaPay has directly processed payments amounting to Ksh 75 million (about $579,822.19), enhancing the livelihoods of these farmers by providing faster access to funds and reducing their dependency on intermediaries.
The company partners with agricultural cooperatives, integrating its technology into their existing systems to facilitate seamless operations. When farmers deliver produce, VunaPay automates the collection process by synchronising with Internet of Things (IoT) devices. This integration ensures accurate, real-time data capture of the product delivered.
The platform maintains precise and up-to-date records of farmer information and inventory. The management ensures transparency and accuracy in tracking produce quantities and associated farmer details. This transparency helps in building trust between farmers and cooperatives.
Once the produce is recorded, VunaPay facilitates immediate payment to the farmers. The instant payout system addresses the common issue of delayed payments, providing farmers with timely financial compensation.
Furthermore, VunaPay offers cooperatives robust management tools beyond payment processing, including inventory tracking and real-time farmer data management. These tools enhance operational efficiency and support informed decision-making within cooperatives.
Njogu-Mokaya is committed to bridging the gap between smallholder farmers and their customers. By partnering with agricultural cooperatives, her organisation has consistently facilitated real-time payments, ensuring farmers receive immediate compensation upon delivering their produce.
Gatwĩri Njogu-Mokaya is transforming the agricultural landscape and inspiring a new generation to view farming as a viable and rewarding business.
