CNFA Agrodealers Providing Grain Storage in Rural Kenya

James and Kristine Imbadu are CNFA-certified agrodealers in the Lugari Market in Western Kenya. The Imbadus established Lugari Agrovet in 1997 and in 2006 started CNFA’s Business Management Training Program, a six-module course that covers a range of topics from accounting to inventory management to product marketing.

“We are where we are today because we were comprehensively trained on how to manage our business,” said James Imbadu.

The Lugari District covers approximately 260 square miles and has an estimated population of about 300,000 people who depend on mixed farming for their livelihoods. A major problem facing farmers in the area is a lack of storage facilities for grain. The Nationals Cereals and Produce Board (NCPB) own a warehouse in the district and are consistently faced with delayed payments, restrictions on quantity of delivered grain and lower prices by competitors.

To meet the demand of their customers for safe storage, the Imbadus applied for a grant to set up a grain bulking facility through CNFA’s matching investment program. The program contributed Kshs. 364,800 and the Imbadus contributed Kshs. 539,000 towards the logistics of setting up the facility.
 
“I am very excited about this grain storage facility. What is interesting is that farmers can devote their money in purchase and use of farm inputs with the assurance and confidence that they have a reliable and easily accessible market for their farm produce,” said Kristine, a local business owner.

The Imbadus are in the process of building a warehouse that has the capacity of storing up to 5,000 bags in order to stabilize the price of grain and reduce exploitation of farmers by the middleman. The grain storage facility helps farmers within Lugari station and other villages as much as 40 miles away.

Through the CNFA business link, the Imbadus have signed a contract with the World Food Programme’s Purchase for Progress program to buy 50 tons of beans worth Kshs. 225,000 from smallholder farmers.

“The solutions to our problems lie within us, and thanks to organizations like CNFA/AGMARK, all we need is someone who can help build and strengthen our capacity,” said Imbadu.