NAIROBI – A new report from Aceli Africa and Dalberg highlights Kenya when unlocking credit access for smallholder farmers following the success of a blend finance model piloted by Agri-Tech companies Hello Tractor and Heifer International.
Started in Kenya and expanded to Rwanda, Uganda, Tanzania and Zambia, the initiative demonstrates that concession capital and local innovation and aftersales support can bring both financial benefits and social impacts.
Hello Tractor outperformed Kenya’s key metrics and later traditional lenders, according to the 2024 Aceli Financial Benchmarks Report, which analyzed over 32,600 loans paid over $1.98 billion from 2020 to 2023.
Hello Tractors’ approach focuses on asset-based lending, allowing farmers and entrepreneurs to access the tractor via a pay-as-you-go model. With the support of Heifer International, local youth are trained as technicians, managing after-sales service hubs, ensuring equipment uptime and lender trust.
Of the 88 loans promoted through a $2.5 million investment by heifers, 76% ranged between $50,000 and $200,000, indicating the scalability of mechanization for smallholder farmers. The loan achieved a 100% repayment rate among first-time borrowers in Kenya, further validating the viability of the model.
Following the early success of Kenya, the model was deployed across Rwanda, Uganda, Tanzania and Zambia.
“This report examines our belief that rural communities in Kenya, particularly are investment possible,” said Adesuwa Ifedi, Senior Vice President of the Africa Program at Haifer International.
“By combining innovation, trust and local executions, smallholder farmers can drive agricultural transformation in Africa.”
Hello Tractor CEO Jehiel Oliver added that the African mechanization initiative driven by the partnership proves that smallholder farmers are viable and bankable with appropriate financing tools and technical support.
