Samchi Group CEO Esther Muchemi Illuminates ICCF 2025 With Transformative Insights on Financing, Trust and the Future of Contract Farming in

By John Kariuki

Samchi Group Founder, Managing Director and Chief Executive Officer, Madam Esther Muchemi, delivered incisive and forward thinking insights at the International Conference on Contract Farming 2025 held at the Sarit Expo Centre. Participating as a distinguished guest panellist, she joined leading policymakers, agricultural experts, industry captains and value chain actors in a high level forum designed to interrogate and reimagine the future of contract farming in Kenya and the wider region.

Her contributions stood out not only for their intellectual clarity but also for their unwavering insistence on practical implementation. She urged both public and private sector players to convert bold ideas into sustained, coordinated action that delivers real transformation within the agricultural ecosystem.

“It was a powerful day of insights and bold ideas. My hope is that the commitments made here will translate into real change for a stronger, more sustainable agricultural sector,” she noted, expressing her appreciation for the opportunity to participate in a movement advancing meaningful reforms in agribusiness.

Reflecting on the design of financial products for farmers and agri SMEs, Madam Muchemi underscored the centrality of agriculture to Africa’s economic future. She observed that while the continent possesses immense natural and human resources, the sector faces severe financial barriers long before planting even begins. Farmers must contend with onerous early stage costs such as land acquisition, fencing, borehole drilling, irrigation infrastructure and land preparation. For many, especially those from regions like the Coast where land parcels are small, these initial expenses remain prohibitive.

According to her, a complete mind shift is needed within the financial sector. A farmer must be able to access credit even during the land preparation phase. Without such foundational support, countless potential producers will never enter the agricultural space. Drawing from her entrepreneurial journey, she emphasised that farmers are not homogenous. They operate under different cycles, cash flows and vulnerabilities. Financial products cannot therefore be uniform. Conventional loans with rigid repayment structures may work for regular businesses but for farmers who rely on seasonal income, such loans can easily become destructive.

She advocated for financing models that align with agricultural rhythms and incorporate buffers for weather related risks through insurance. She highlighted the importance of simple, comprehensible terms that farmers can easily navigate. She also noted that existing contracts between farmers and buyers should be recognised as legitimate instruments for guiding credit decisions. Madam Muchemi championed tripartite agreements that bind the farmer, the off taker and the financier in one framework that reinforces accountability and minimises perceived risk.

She further encouraged innovative approaches such as business to business credit systems where input suppliers provide inputs on credit and invoice discounting that enables farmers to access cash based on produce already delivered. She closed this segment with a powerful call to action, stating that the conversation must quickly shift from ideas to implementation.

Turning to the broader question of attracting stronger commercial investment into agriculture, she began with a principle she described as both simple and indispensable, the need for trust. Trust, in her view, mitigates risk more effectively than any technical formula. She urged the private sector to abandon outdated narratives that portray agriculture as unprofitable. This requires corporate leaders to leave their boardrooms, visit farms and engage directly with realities on the ground.

Madam Muchemi outlined several essential actions through which the private sector can help de risk agriculture. These include shared responsibility models through insurance and flexible contracting, strategic partnerships with cooperatives and technology platforms that track production trends and the wider use of tripartite agreements, particularly in industries where predictable supply chains already exist such as barley production for breweries.

She shared a real experience from a past pilot project where farmers diverted produce to brokers to obtain urgent school fee payments, breaking the contract and causing losses to the buyer. This example, she said, highlights the urgent need to strengthen legal enforcement mechanisms. Current systems are slow and unpredictable, increasing risk for all actors within the ecosystem.

Ultimately, she observed, capacity building remains indispensable. Empowering farmers with knowledge on market demands, quality standards and financial management creates a more disciplined and investable agricultural environment.

“The private sector cannot just bring money. It must bring structure, support, accountability and shared responsibility. That is key,” she concluded.