New AFC-DanChurchAid Partnership to Expand Cold Storage Access for Smallholder Farmers

Smallholder farmers across Kenya are expected to gain improved access to cold storage facilities following a new partnership between the Agricultural Finance Corporation and DanChurchAid aimed at reducing post-harvest losses and strengthening agricultural financing.

The two organisations signed a Memorandum of Understanding (MoU) during a side event at the Financing Agri-food Systems (FINAS) Summit, marking a collaborative effort to support farmer cooperatives in investing in cold storage infrastructure and improving the profitability of agricultural enterprises.

Under the agreement, the Agricultural Finance Corporation will provide financing to eligible farmer cooperatives seeking to establish or expand cold storage facilities. The investment is expected to help producers preserve perishable commodities for longer periods, reduce spoilage, and improve their ability to sell produce when market conditions are more favourable.

Access to reliable cold storage has remained one of the biggest challenges for many smallholder farmers, particularly those producing fruits, vegetables, dairy products, flowers, and other highly perishable commodities. Limited storage capacity often forces farmers to sell immediately after harvest when supply is high and prices are at their lowest, reducing household incomes and increasing food waste.

The partnership seeks to address this challenge by combining affordable agricultural financing with investments in post-harvest infrastructure. By strengthening farmer cooperatives, the initiative is expected to improve collective marketing, enhance bargaining power, and encourage greater participation in formal agricultural value chains.

Agriculture experts estimate that post-harvest losses account for a significant share of food produced in Kenya each year, with inadequate storage, poor transport, and weak cold chain systems contributing to substantial economic losses. Improving preservation facilities is viewed as a key step towards increasing food security while raising returns for farmers.

The collaboration also aligns with Kenya’s broader efforts to modernise agriculture through value addition, improved logistics, and increased private and development sector investment. Expanding cold chain infrastructure is expected to support domestic markets while opening opportunities for farmers to supply supermarkets, processors, exporters, and institutional buyers that require consistent product quality.

Speaking during the signing, representatives from the two organisations underscored the importance of making agricultural finance more accessible to farmer groups while investing in infrastructure that delivers long-term economic benefits. They noted that stronger cooperatives equipped with modern storage facilities are better positioned to minimise losses, stabilise incomes, and respond to changing market demand.

Stakeholders at the FINAS Summit welcomed the initiative, saying affordable financing linked to practical investments could help address long-standing constraints facing smallholder agriculture. They added that expanding access to cold storage would not only improve farm profitability but also contribute to a more resilient and efficient food system.

As implementation begins, the AFC-DanChurchAid partnership is expected to provide a model for integrating finance, infrastructure, and cooperative development, giving thousands of smallholder farmers a better opportunity to preserve the value of their harvests and compete in higher-value agricultural markets.