Agroclimatica is transforming Kenya’s agriculture sector, a product designed by Metropol to offer a lifeline to agriculture-based Small and Medium Enterprises (Agri-SMEs).
The product is approved by the Central Bank of Kenya (CBK) to empower farmers and financial institutions alike with its cutting-edge features.
At the heart of Agroclimatica is Kilimo Scores, a sophisticated system that assesses climate risks, delivers climate projections, recommends smart crop choices, and forecasts potential cash flows for specific crops.
Initially launched in Kenya in 2021 through a partnership with Danish tech firm Ingemann, Agroclimatica has recently gained momentum by onboarding new clients eager to leverage technology to boost productivity and secure credit.
The platform’s primary goal is to enhance financial decision-making in agriculture. By predicting cash flows, promoting sustainable farming practices, and mitigating lending risks, it addresses longstanding challenges faced by Kenyan farmers.
Metropol CRB Chief Executive Gideon Kipyakwai recently signed a deal with Avenews, a fintech firm specializing in digital financial solutions for farmers.
He said financial institutions often view agribusinesses as high-risk due to unpredictable revenues, which limits farmers’ access to loans.
“In the lending space, credit risk—default, loss, and exposure—drives financing decisions,” said Kipyakwai.
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“Agroclimatica quantifies these risks, offering vital support to both financial institutions and farmers.”
Gideon said extensive data collection and testing were critical in earning regulatory approval, ensuring the tool’s reliability for the market.
Sustainability Goals
Beyond financial empowerment, Agroclimatica supports Kenya’s sustainable goals.
The platform tracks CO2 emissions to align with Net-Zero targets and the company’s Sustainable Development Goals (SDGs).
Its advanced satellite monitoring system also keeps tabs on deforestation, wildfires, and forest regeneration at both individual farm and portfolio levels, reinforcing eco-friendly farming practices.
Gideon said through Agroclimatica, Metropol is dedicated to bridging the gap between agriculture and financial services. This mission is fostering a more resilient and sustainable agricultural sector in Kenya.
CBK Report on Agri-Financing
The CBK’s November 2024 Agriculture Sector Survey Report shed light on an uptick in credit access for the sector, crediting digital lending platforms for reaching remote areas without traditional banking infrastructure.
High interest rates remain the most significant hurdle for farmers seeking loans. Additionally, some farmers shy away from borrowing altogether, fearing that unpredictable rainfall could lead to crop failure and, ultimately, the risk of losing their land to auction.
Agroclimatica’s blend of technology, financial insight, and sustainability is charting a new course for Kenya’s agricultural future, offering hope to farmers and lenders navigating an increasingly complex landscape.
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