Avenews: An Innovative Approach to Solving the Agri-Financing Gap

Avenews, a fintech revolutionizing agricultural financing, has announced a significant financing amount of 2.5 Billion Shillings for lending to agri-SMEs in Kenya.

Since its establishment in 2017, Avenews has been at the forefront of driving transformative change in the agricultural supply chain through innovative Agri-Trade financing products. The company, aptly named to signify “new avenues to finance agri-SMEs,” offers customized digital financing solutions tailored for agri-SMEs across the agricultural supply chain in Africa.

Speaking at the launch event, Avenews Country Manager Emmanuel Murai, highlighted its disruptive impact saying, “Our flagship products—the Agri-Credit Line, Agri-Supplier Financing, and Agri-Buyer Financing—are reshaping Kenya’s agricultural lending landscape. The early market response shows we’re not just making waves in Kenya but laying the foundation for a transformative shift across Africa.”

The launch comes at a pivotal time for the agricultural sector in Sub-Saharan Africa. According to a report by Aceli Africa, the region faces an annual agricultural finance gap of $180 billion, with $ 65 billion specifically needed to support agri-SMEs.

Despite agriculture being a cornerstone of Kenya’s economy—contributing 34% to GDP and providing one in every 10 formal jobs—the sector currently accesses only 3.53% of private sector credit, equivalent to KES 134.2 billion out of KES 3,797.5 billion, as reported by the Central Bank of Kenya (CBK).

Avenews is committed to bridging this gap by leveraging technology and innovation to provide tailored financial solutions for businesses across the agricultural supply chain, explained Murai.

“By addressing the $65 billion financing gap in Africa’s agribusiness sector, we’re ensuring that agribusinesses, suppliers and buyers have the capital they need to grow,” he added.

According to CBK’s November 2024 Agriculture Sector Survey Report, there is an improvement in access to credit for the agricultural sector, attributing this in part to digital lending, which effectively reaches businesses in the agricultural value chain in remote areas lacking brick-and-mortar bank or sacco branches.

In this sense, Avenews active involvement in this sector, with investments exceeding 2.5 billion shillings for lending to Agri-SMEs in the agricultural value chain, will practically bridge this gap by providing access to finance for agri-trade which will boost productivity and foster sustainable growth.

 Jonathan Tseelon, CEO Avenews, emphasised the design of the solutions saying  “Unlike other industries, agriculture operates on its own cash flow cycle; to address these realities, we’ve designed our products to adapt to that rhythm and speak directly to the uniqueness of the agricultural ecosystem.”

“At Avenews, our goal is simple: to provide agri-SMEs with quick, easy access to financing so they can improve cash flow, increase inventory, strengthen operations, and grow sustainably. This isn’t about funding at all—it’s about equipping businesses to thrive in a sector that feeds nations and drives economies,” he added.

Representing the government, Mr. Moses Kimani, Advisor to the PS State Department of Livestock Development, further highlighted the crucial role of value chain financing models in ensuring seamless access to credit for agribusinesses, processors, and markets.

“The introduction of innovative Agri-Trade financing products by Avenews holds transformative potential for the agricultural supply chain, paving the way for expansive developments beyond Kenya to other regions in Africa,” he said.

He added, “This collaboration supports Government policies to propel Kenya’s agricultural sector towards enhanced productivity and inclusivity.”

The launch event was attended by key stakeholders and partners from the agri-tech, finance, and supply chain ecosystem, including the East Africa Grain Council, Dr. Anastasia Kagunyu from Kenya Agricultural & Livestock Research Organization (KALRO), and Munyi Nthiga, Chief Growth Officer at Ketha.africa, exemplifies the collaborative efforts aimed at driving positive transformation and economic prosperity within the agricultural sector.

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