REAP KENYA SMALLHOLDER HORTICULTURAL FARMING IN KENYA AND THE REAP PROJECT

1. REAP KENYASMALLHOLDER HORTICULTURAL FARMING IN KENYA AND THEREAP PROJECT CARE International in Kenya

2. Presentation outline Smallholders in Kenya • Introduction • The Produce and the market • External Factors Influencing the market • Main constraints faced by the smallholder • Efforts by the GOK and others Efforts by CARE – REAP Model • Background • Area of coverage • Mission & Objectives • The model • Lessons learned • Conclusion

3. Introduction • Although over 80% of Kenya is classified as ASAL it is gifted with rivers and water that allow for all year round production in horticultural produce for the domestic and export market. • The last decade has seen the Agricultural sector undergo a revolution making it the 3rd largest contributor to the GDP at about 23% and the exports in the horticultural sub-sector exports have doubled from about 50000 tons p.a. in 1991 to almost 100000 tons p.a. in early 2000. • Due to it’s small scale production structure and it’s labour intensiveness it has contributed in a large way to employment and income generation for a large size of the population. • Despite the growth seen in sector and the fact that over 60% of the produce is contributed by the smallholder, the smallholder continues to be marginalised.

4. The Produce and the Market • Horticultural crops grown in Kenya include: tomatoes, kale, onions, sweet pepper, cowpeas, sweet corn, oranges, mangoes, French beans, papaws, citrus fruits, Asian vegetables,etc. • Asian vegetables also known as Indian vegetables refer to Karella, Brinjals, Chilies, Okra, etc that originated from India. • 90 % of the horticultural produce from Kenya go to the EU and 50 % of these go to the UK • 40 % of the horticultural produce into the UK are vegetables • 17 % of vegetables to the EU are ‘Asian’ vegetables with 15 % going to the UK alone • Peak periods in April-June & Sept-Nov for Asian vegetables

5. External Factors influencing the market • European consumers do not just want good quality horticultural produce, they also want to know that they have been produced under ethically and environmentally sound conditions….FPEAK,KFC,KEPHIS,HCDA,….all have a role to play in/with MRLs,Code of practice,GAPs,etc • World Trade agreements like the one currently in place after Lome V which gives tariff concessions to the EU expires in 2007. Kenya is no longer considered to rank like a Least developing country but instead a developing country. • Poor infrastructure, e.g. roads, rail services, telecommunications, etc. • Rising competition from other emerging ACP economies e.g. for Asian vegetables countries like Ghana and Uganda. • Aids is affecting every sector. 1 out of every 10 adults in Kenya has aids! It is affecting the labour force of the sector, its affecting the level of income available of the farmer

6. Constraints faced by the small holder farmers • Limited Capital and access to credit to for inputs • Lack of modern irrigation technology • Poor quality seed • Expensive inputs – Chemicals & Fertilizers • Inadequate knowledge of modern growing techniques • Marketing – lack of market information and adequate markets • Inadequate skills in business techniques

7. Effort of GoK and Partners • The MoA KARI FPEAK UoN-KIP etc have all given extension services to the farmers. • The MoA has a department that deals with irrigation;Min. of Water issues permits and educates on ‘water rules’; NIB; TARDA; UoN-KIP; FPEAK; KARI;USAID; etc have all played a role in trying to improve irrigation for the smallholder • Duty relief on chemicals and fertilizers • Ministry of Cooperatives assist to organise farmers coop. Groups while Ministry of Culture organise the smaller groups into ‘self help groups’. • KEPHIS play a role indirectly as they are in charge of checking that exports meet expected standards • HCDA is probably the biggest effort by the government to date to assist the smallholder i.e. the initiative of the cold stores/auction centres in conjunction with the Japanese

8. CARE’s Role - The REAP project The Background • The CARE Rural Enterprise Agri-Business Promotion (REAP) Project was initiated in early 2000. • Originally, the REAP project was funded by IFAD grant under the CARE Canada’s ROAD program. • Other Donors supporting the project are CIDA & CARE USA. • Other countries involved in the REAP programme include Mozambique, Zambia, Ghana and Zimbabwe. The REAP Project • The project evolved from a joint agribusiness project proposal developed by CARE Kenya in collaboration with FPEAK, KARI UoN-KIP, HCDA and USAID who are all key players in the sector • The first two farmers’ groups in the REAP project were groups that emanated from a small growers scheme that was run by FPEAK & USAID.

9. REAP Project Area The Region • The area of operation is ‘Greater Kibwezi’ • One of the lowest per capita income in the country • Out of a total of 21,000 acres of ‘irrigatable’ land available only 3,000 acres is used. • 30 % of the Asian vegetables are produced in Kibwezi • ‘Greater’ Kibwezi which is the target area located in Makueni District of Eastern Province. Makueni District is a semi-arid area approximately 200 km south east of Nairobi. Kibwezi, Makindu and Mtito Andei are the three divisions within Makueni where the REAP project is to be located. • Horticultural production is carried out in several clusters of smallholder farmers concentrated along the many rivers (Kibwezi river, river Athi, Thange river, Makindu River, Mtito Andei river, Mang'elete river, Kambu river) that flow through the area

10. MAKUENI DISTRICT – REAP PROJECT AREAS

11. The Mission and Objectives Specific Objectives • Organize Farmers into groups • Provide linkages with the market • Provide linkages with the input and credit suppliers • Provide Extension services • Form a core management unit

12. The Implementation Model – “Business Oriented Model”

13. Operational Method • The REAP project consists of a team of experts in their fields,headed by a Business Manager who reports to a board. • The farmers are organised into groups (PUs)of 30-50 members and they grow mainly Asian vegetables for export. • The farms are run by a farm manager who is employed by the farmers & reports to a committee/board of farmers working initially under the advise of REAP • The REAP management links the farmers to the market by negotiating an export contract • The REAP management assists the farm manager make their production plan to satisfy the export contract • The REAP management assists the farmers to make a business & investment plan to help build their financial base.

14. Operational Method • The REAP project provides linkages with input suppliers and uses a ‘revolving fund’(ISF) to facilitate supply of inputs & any ‘loans’ given are repaid at the end of the cycle/quarter. • The REAP project also offers the farmers assistance in acquiring modern irrigation infrastructure and systems through an Inputs Supply Fund (ISF) but this credit is payable over a longer period. • Once the Units gain full managerial and financial autonomy which is expected to be in 2-3 years then the REAP management takes the funds repaid back from that unit and begins another unit. • The first phase will have 5 viable units in place by June

15. Land-The Farming System

16. The People-Training

17. The Produce-Sorting

18. The Produce-Grading

19. Lessons Learnt Lessons Learnt • Emphasis on Farmer owned process rather than farmer managed – utilization of land, labour management, crop selection/mix, etc. • Intensive capacity building necessary • Group structure – Ltd. Companies, coops, etc. • Selection criteria – priority to full time farmers with 1.5 acres of land or less and earning their living from horticulture • Viability = Sustainability