Danida Market Development Partnership Programme

MESPT’s Project Title: Spurring Job Creation in Kenya by Enhancing the Competitiveness of the Banana Sub Sector in Taveta Taveta County

Project Partners:

1. The County government of Taita Taveta
2. Wanda Agriculture Group: the local partner facilitating aggregation, and management of the bananas supply chain.
3. Orana A/S: a Danish company to establish the banana factory to process pulp for the international market.
4. Financial institutions: facilitating farmers with the much-needed finances to increase their investment in agribusiness.

The Taveta Banana Project is rolling out interventions geared towards enhancing the competitiveness of the banana value chain and improving market access for the targeted farmers. A fully operational fruit pulp processing factory will be set up in the fourth year of the project cycle, and it is expected to have an annual processing capacity estimated at 40,000MT. Partners will set up aggregation centers and invest in a 300-acre organic farm to ensure a consistent banana supply while also developing the capacity of 2,000 smallholder farmers(1,500 for conventional banana farming and 500 for organic farming). The  1,500 small holder farmers are organised in 30 farm estates technically supported by 1 farm estate advisor each whose capacities are being developed by the project. Production capacities of smallholder farmers and service providers are being developed, and vertical and horizontal linkages facilitated, thereby sustainably creating value and business efficiencies. It is expected that 3,000 value chain actors will have their incomes increased by at least 35% from 2023. An estimated 1,200 private service providers providing an array of services to the farmers and other value chain actors will also be expected to earn and/or diversify incomes as a result of the opportunities generated by the project. At least 31,500 MT of quality bananas per year, from targeted farmers, will consistently be produced and sold and at least 550 direct decent jobs created by the commercial partners.

The project will contribute to increased and sustainable incomes and decent jobs within the banana sub-sector in Taita Taveta County, with an emphasis on women and youth. This will by extension contribute to poverty alleviation.

Additional Funding for Banana Greening Initiatives

The MESPT/Orana consortium received additional funding of DKK 4,364,474 from the Danish Ministry of Foreign Affairs (DMFA) in 2021 to embed sustainability and green growth practices in the first phase commercial banana project.

In this action, Orana and Wanda Agriculture Group are greening their commercial business cases further by integrating circular solutions into their processes and adopting eco-friendly practices. These practices will include waste management, water recycling and reuse of materials with 100% of the waste at the facilities converted into compost manure; Support to organic certification for 500 small holder farmers targeted for organic farming, through training and establishment of eco-pack houses for organic farming cluster(s); Promotion of nature-based farming solutions and vermicompost manure production; Extraction of products from banana pseudo stems and farmer linkages to safe food market opportunities.

The consortium will promote climate smart and regenerative agricultural practices among smallholder farmers and work with key stakeholders and market players to institute green compliance framework for organic/safe food production. 20 demonstration farms will be enhanced to integrate greening solutions with partnerships on inclusive green growth and circular economy developed and engagement mechanisms established. It is expected that through the additional activities’ incomes of the 2,000 targeted smallholder farmers will increase by at least 40% (on average) and that at least 550 direct decent jobs will be created. The activities will lead to reduced carbon emissions and sequestration, improvement of soil quality while also enhancing food security amongst targeted households. The additional activities will be  implemented from January 2022 through to June 2025 alongside those in the ongoing project.