KMT Agri-Inputs Case Study
Despite the importance of agriculture to the Kenyan economy, it has not been performing to its potential. There is limited diversification away from staple crops, such as maize, and average yields remaining below those of comparable countries. Kenyan farmers use relatively low levels of inputs. This lowers productivity and therefore farmers’ returns and their ability to reinvest in their crops.
While several factors have affected productivity, the structure of the agricultural inputs market has been a major cause of poor performance. This stems from two main issues;
Taken together, these have had severe impacts on smallholder farmers and created several intersecting negative cycles.
Tackling Underperformance – KMT’s Vision For Transforming The Agri-Inputs Sector
KMT believes that through the right support and facilitation, transformational change is possible within the agri-inputs sector, delivering higher agricultural productivity, long-term growth, and better value to farmers.
KMT has developed two main strategies focused on the two key challenges
Strategy 1: Fostering long-term customer-oriented business strategies along the chain.
Strategy 2: Improving seed industry governance and regulation.
Signs of Sector Transformation
Change in suppliers’ behaviour
KMT’s partnership with Toyota Tshusho has not only allowed them to rapidly expand sales of crop-specific blends but has also encouraged other fertiliser companies to adopt innovative marketing strategies to increase sales.
Change in distributors’ behaviour
Distributors that received KMT support have significantly improved financial performance and grown customer networks. They have also implemented better distribution practices and maintained continuous engagements with agro-dealers and farmers.
Change in agro-dealers’ behaviour
Agro-dealers that have maintained close ties with distributors through the preferred stockist model have seen significant improvements in their sales.
Change in farmers’ behaviour
Farmers who attended demonstrations, field days or expos organised by KMT-supported distributors or suppliers have begun to adopt good agricultural practices and diversify crop production based on KMT reporting data.