Smallholder farmers and agribusinesses continue to face significant hurdles in accessing affordable credit, with many locked out of conventional lending because they lack collateral, lengthy credit histories or formal financial records.
The financing gap has constrained investment in farm inputs, produce aggregation and expansion, limiting growth across agricultural value chains.
Financial technology firm Avenews is seeking to address this challenge through an artificial intelligence-powered lending platform that uses transaction data and machine learning to assess the creditworthiness of agribusinesses, enabling qualifying enterprises to access working capital within a short period.
The innovation replaces traditional collateral-based assessments with data-driven analysis of business performance, allowing agricultural enterprises with consistent transactions to secure financing more quickly.
Avenews Chief Executive Officer Jonathan Tseelon said the model was designed to solve one of the sector’s biggest constraints: limited access to affordable, timely, and flexible financing.
Unlike conventional lenders that depend heavily on security and lengthy approval processes, the platform analyses transaction records, sales patterns, seasonal trends and value chain performance to determine eligibility for credit.
“We base our credit decisions on transaction data rather than collateral. As long as a business demonstrates healthy transactions, we are able to assess the risk and provide financing quickly,” he said.
The financing is tailored to support agribusinesses facing short-term cash flow pressures, particularly those involved in purchasing farm inputs, aggregating produce, storing commodities and supplying agricultural products to processors and other off-takers.
According to Mr. Tseelon, delayed payments remain a major challenge for agricultural enterprises, with many buyers taking between 30 and 60 days to settle invoices.
The platform enables eligible businesses to access advance payments, allowing them to maintain operations without disrupting supply chains.
The ripple effects extend beyond agribusinesses to farmers. By improving the liquidity of agro-dealers, the financing helps maintain adequate stocks of seeds, fertilisers and other farm inputs, improving product availability while helping stabilise prices during planting seasons.
The company supports enterprises operating across dairy, horticulture, cereals, livestock and poultry value chains through partnerships with cooperatives, farmer organisations, produce aggregators and other agricultural market players.
Young entrepreneurs and emerging agribusinesses are among the primary beneficiaries of the platform.
Unlike conventional lenders that often require years of financial records, Avenews considers businesses with as little as three to six months of transaction history, using M-Pesa, bank or SACCO statements to assess creditworthiness.
To qualify, businesses must be formally registered, operate within the agricultural sector and record a minimum annual turnover of Sh300,000.
The company currently serves clients in western Kenya, South Nyanza, the Rift Valley, the Mount Kenya region and Nairobi, where field officers support businesses through onboarding, credit assessment and financial literacy training.
Despite relying on artificial intelligence to power lending decisions, Mr. Tseelon said direct engagement with customers remains central to the company’s approach.
“Technology helps us assess businesses efficiently, but we also invest heavily in field support because trust and close engagement are essential in serving rural enterprises,” he said.
Hundreds of agribusinesses have already secured financing through the platform, with many reporting stronger cash flow, higher trading volumes and business expansion after accessing working capital, according to the company.
The financing attracts daily charges of between 0.15 and 0.3 percent depending on the product, with borrowers paying only for the period the funds are utilised.
Customers are not charged for unused credit limits or for early repayment, providing greater flexibility for businesses managing seasonal cash flows.
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