Sahel Capital invests USD 1M to boost Kenyan apple farming

KENYA – Sahel Capital, a leading investor in Africa’s food and agriculture sectors, has approved a USD 1 million loan to Apple Orchards, a Kenyan enterprise specializing in apple seedling cultivation and fruit production.

The funding, provided through the Social Enterprise Fund for Agriculture in Africa (SEFAA), aims to empower smallholder farmers and promote economic growth in the region.

Apple Orchards, which has been a key player in Kenya’s horticultural sector for nearly four decades, partners with 2,500 farmers across 36 counties.

By supplying high-quality, high-yielding apple seedlings, the company helps farmers increase their productivity.

In addition, Apple Orchards offers agronomic support and secures market access for the farmers, ensuring they can sell their produce at competitive prices.

“Many farmers struggle with selling highly perishable fruits like apples at discounted rates due to local market saturation,” explained Dojil Adebusoye, a Partner at Sahel Capital.

“Apple Orchards provides a reliable market for these farmers, allowing them to earn improved incomes through value-added products and export demand.”

The partnership with SEFAA will allow Apple Orchards to further expand its operations and diversify its product offerings.

According to Matthew Nienga, CEO of Apple Orchards, the company has already supplied seedlings to over 1,000 customers across 13 African countries and two others outside the continent, including the Philippines and Jamaica.

With the new funding, Apple Orchards plans to process apples into apple crisps and concentrate for the local market.

“Through our offtake arrangements, smallholder farmers can now earn at least USD 3,000 from just 0.25 acres of land,” Nienga said.

“This funding will enable us to continue supporting farmers and boost their income by tapping into more value-added opportunities.”

Apple production is steadily growing in East Africa, with several countries making significant strides. In Tanzania, organizations like tamu tamu tanzania have introduced over 50 apple varieties suited to the local climate.

Similarly, Uganda’s southwestern highlands have become a hub for apple farming, with varieties such as Anna and Golden Dorset being commonly grown.

Kenya, too, is increasing its apple production, especially in the highland areas surrounding Mount Kenya. Farms like Wambugu Apples, Kakuzi PLC, and Mwea Apple Farm have gained traction, producing disease-resistant varieties like Enterprise and Gold Rush.

These efforts are part of a larger movement to reduce East Africa’s dependency on apple imports, which cost the region an estimated USD 400-500 million annually.

By supporting smallholder farmers and expanding into value-added products, Apple Orchards is positioning itself as a key player in the region’s growing apple industry.

This collaboration with SEFAA is expected to boost the livelihoods of farmers while contributing to the sustainable growth of Kenya’s agricultural sector.