Capital moved the farm from one crop to three.

The business

Sakami Ranches Ltd is a family owned farming company close to Kitale in Kenya. The family established it in 2004 and has a long tradition in the area. Coffee is the main crop. Macadamia grows in the bushes and gives shade to the coffee trees, which improves the quality of the coffee. Avocado came later, for the growing European market.

Sakami holds a grower export licence. The plan is to increase direct sales into the EU and to build longer term relationships between seller and buyer.

Where the risk sat

Coffee markets and yields move a great deal from year to year. A farm with one crop carries that movement on its only revenue line. Water supply was the second risk. Without reliable irrigation the yield fell, whatever the market did.

What we financed

MMOF invested capital and supplied business development services. The capital paid for three things:

• More than 100 acres of new coffee, macadamia and avocado plantation
• Two reservoirs that collect surface runoff after rain, for irrigation
• A solar pump that distributes water across the farm, and modern farm equipment

The whole estate now runs on drip irrigation, with solar pumps and spring water for irrigation and washing. The new equipment increased operational efficiency and cut operating cost.

The financial and operational services changed how the company reads itself. Sakami can now analyse its own data, develop useful insight from it, and plan ahead more accurately. That work fed the go-to-market plan and led to the current decision to increase the share of higher quality end products.

Where it stands now

The farm creates work for local people. More than 100 women work the picking seasons. Responsible farming is the standard across the estate.

Sakami is re-establishing an indigenous forest along the riparian reserve next to the farm. That protects the freshwater springs inside the reserve and gives a habitat to the small antelope that live in and around the farm.

The company also works with neighbouring farms. As a larger group they share knowledge and skills, and they offer more volume to customers who prefer to buy larger amounts from one place.