PRIDE AFRICA has taken the role of Research and Development concentrating on developing new ideas, products and platforms to mainstream the poor. Its mission is to create a commercially sustainable financial and information services network in Africa.

The Problem

Agriculture is the dominant sector of Kenya's economy as it is in most of Africa, representing more than 30% of GDP, 45% of government revenue and providing employment for 75% the workforce. It contributes 70% of industrial raw materials and 65% of export earnings from major export commodities namely tea, coffee, fisheries, livestock products and more recently horticulture. The horticultural sector is becoming one of the fastest growing in Kenya representing the country's third largest foreign exchange earner after tea and coffee. Small-scale farmers account for 70% of the total agricultural production and 50% of market output. Yet Kenya remains a low-income food deficit country with overall national incidence of poverty at 56% in the rural areas and 49% of urban population. In the context of Kenya, poverty in this East African country has risen from 3.2 million in 1972/73 to 11.5 million in 1994, 12.5 million in 1997, and an estimated 15 million today.

The above scenario does not come as a surprise. The last decade has witnessed the collapse of government agricultural support systems and extension services. Marketing infrastructure has been plagued by corruption and inefficiency, irrigation schemes have been neglected and access to information and yield - enhancing technology has been limited, particularly savings services. Credit-based programs have overlooked the challenge and importance of delivering innovative financial and business support services to rural small holder farmers. Most significantly, the fact that financial services have not been taken to the doorstep of farmers and rural inhabitants that constitute 80% of the population of Kenya, remains a sad commentary on the true impact of Microfinance practitioners.

Improved agricultural productivity would require that farmers are motivated and facilitated by such initiatives like DrumNet a project of PRIDE AFRICA targeted at providing financial, marketing, and information services specifically designed to increase farm productivity, market access, and overall efficiency.

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