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Fintech platform, Kaleidofin, has completed Kenya’s first private-sector local currency securitisation in the smallholder agriculture sector, in partnership with agri-finance firm Apollo Agriculture and with investment from the IDH Farmfit Fund.
According to the Exchange, the transaction marks a milestone in developing institutional capital markets for rural lending and demonstrates how structured credit can channel investment into smallholder farming finance.
The deal securitised smallholder farmer input credit worth KES 370 million and mobilised KES 276 million (about US$2.1 million) through the sale of receivables originated by Apollo Agriculture.
The portfolio covers 23,839 farmers, of whom 51 percent are women and about 22 percent are first-time borrowers.
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The issuance received a BBB- investment grade rating from Agusto, highlighting the credit quality of the asset class.
Structured through Kaleidofin’s ki platform, the transaction converts agricultural loans into investable instruments for institutional investors in local currency.
The platform uses a proprietary AI-driven risk tool known as ki score to assess credit risk using loan data, bureau records and alternative datasets.
The structure enables Apollo Agriculture to recycle capital more efficiently while aligning financing with seasonal farming cycles.
It also provides investors with improved visibility into underlying risk in a sector often constrained by limited data transparency.
For Apollo Agriculture, the deal provides immediate liquidity, allowing the firm to expand lending to smallholder farmers. Its credit technology combines satellite imagery, machine learning and mobile data to assess farmer creditworthiness without requiring traditional collateral or credit history.
According to Roel Messie of IDH Investment Management, the transaction shows how innovative financial structures can unlock large-scale financing for smallholder farmers when capital is paired with enabling infrastructure.
Kaleidofin Co-Founder and Chief Executive Officer, Sucharita Mukherjee, said the platform was designed to build scalable financial infrastructure for underserved segments, including smallholder farmers, women entrepreneurs and small businesses.
She added that data-driven risk assessment and customised structuring were key to attracting institutional capital into agriculture in a sustainable way.
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