The groundbreaking transaction involved the securitisation of smallholder farmer credit receivables worth KES 370 million, mobilising KES 276 million (approximately USD 2.1 million) through the sale of these assets.
The portfolio covers 23,839 smallholder farmers, 51 percent of whom are women and about 22 percent first-time borrowers.
The issuance received an investment-grade BBB- rating from Agusto, highlighting the credit quality and investability of agriculture-focused receivables.
Structured through Kaleidofin’s ki platform — a dedicated debt capital market infrastructure — the deal converts granular agricultural loans into investable assets for institutional investors in local currency.
The platform uses Kaleidofin’s proprietary AI-driven ki score, which analyses loan transaction data, credit bureau information, and alternative data sources to enable customised structuring and better risk segmentation.
For Apollo Agriculture, the securitisation provides immediate liquidity, improves capital efficiency, and allows the company to expand input financing to more smallholder farmers without increasing balance sheet leverage.
The firm’s credit tech stack leverages satellite imagery, machine learning models on agricultural yields, and mobile data collection to underwrite farmers who traditionally lack collateral or credit history.
“This transaction demonstrates how innovative financial structures can unlock capital for smallholder farmers at scale,” said Roel Messie, CEO of IDH Investment Management.
“Building investable opportunities in agriculture requires both capital and enabling infrastructure.”
Kaleidofin Co-founder and CEO Sucharita Mukherjee noted that the platform was designed to serve traditionally excluded segments such as smallholder farmers and women entrepreneurs.
“By enabling customised structuring and data-driven risk insights via ki score, we are building the foundations for institutional capital to flow into sectors such as smallholder agriculture in a sustainable way,” she said.
The deal is expected to serve as a blueprint for similar structures across emerging markets.
It forms the first phase of a multi-year securitisation programme projected to mobilise KES 2.37 billion and reach over 130,000 farmers.
Local currency financing is particularly important as it shields farmers from foreign exchange volatility.
The IDH Farmfit Fund acted as anchor investor. The transaction received technical and ecosystem support from FSD Africa, the UK’s MOBILIST programme, and British International Investment (BII) through technical assistance to Apollo Agriculture.
FSD Africa’s Chief Financial Markets Officer, Dr Evans Osano, described the deal as a blueprint for structured finance in agriculture.
“This showcases how well-functioning market infrastructure can catalyse institutional capital for sectors traditionally considered high-risk,” he said.
The initiative aligns with broader efforts to boost women’s economic empowerment and financial inclusion.
Apollo Agriculture CEO Eli Pollak added that the transaction validates their tech-enabled model and will help lower the cost of funds, enabling more affordable loans to farmers for seeds, fertilisers, and tools.
This pioneering securitisation highlights the growing role of fintech, blended finance, and data-driven credit solutions in transforming agricultural financing across Africa.
By reducing information asymmetry and aligning funding with seasonal farming cycles, the model promises greater resilience and scalability for smallholder agriculture, which forms the backbone of food security in the region.
