At the recently concluded Financing Agri-food Systems Sustainably Conference (FINAS 2025) in Nairobi, the challenge of limited access to agricultural financing for SMEs and young agripreneurs took center stage. One of the core issues repeatedly raised was the lack of collateral, a major barrier that continues to hinder financial inclusion in the agricultural sector. However, a fintech company is now changing the narrative by rethinking how collateral is defined and used in agriculture financing.
Avenews, a fintech company operating in Kenya and other regions, is tackling this financing gap using an innovative model based on data-driven value chain financing. Rather than requiring traditional forms of collateral such as land or fixed assets, Avenews uses operational business data as a substitute. This includes invoices, purchase orders, payment history, and cash cycle records. These data points are generated naturally by businesses during normal operations, meaning agribusinesses do not need to go out of their way to qualify for support they only need to maintain proper records and consent to share them.
The company’s financing model targets a critical segment of agri-SMEs that fall between two extremes: those unable to qualify for traditional bank loans due to stringent requirements, and those for whom microfinance loans are insufficient. Avenews provides solutions tailored to these mid-tier businesses, helping them overcome cash flow challenges without the burden of traditional collateral demands.
One of their flagship products, Agri Supplier Financing, demonstrates the power of this approach. For example, an agribusiness supplying large retailers such as supermarkets often faces delayed payments of 30 to 60 days. Though these transactions are profitable, they create cash flow constraints. Avenews steps in by financing the business based on the invoice issued to the buyer, enabling the agribusiness to pay its suppliers and continue operating without disruption.
The financing process is supported by AI technologies like machine learning, which assess creditworthiness and determine loan limits based on shared data. This system not only evaluates current business health but also enables growth over time. As businesses build stronger transaction records, they become eligible for larger financing amounts. This creates a positive feedback loop where improved data quality leads to increased capital, encouraging sustainable growth.
Although the company does not lend directly to farmers, they still benefit. By financing agribusinesses that purchase from farmers, these businesses can buy more produce and pay farmers promptly. As liquidity improves across the value chain, farmers gain better access to markets, experience fewer post-harvest losses, and can negotiate better prices.
To scale their impact, the company actively forms partnerships across the agricultural ecosystem. They work closely with county governments to reach cooperatives, such as those in the avocado supply chain in Kirinyaga County. These partnerships help ensure timely farmer payments and support processing companies to expand procurement from smallholders. They are also engaging with livestock sector stakeholders and agrochemical manufacturers and distributors, including in Kisii County, to strengthen the entire agricultural supply chain.
In 2025, the company has committed to disbursing Kshs 2.5 billion to Kenya’s agriculture sector. This infusion is expected to stimulate more transactions, drive efficiency in the value chain, and contribute significantly to GDP growth by improving economic outcomes for businesses and farmers alike.
