Fintech platform, Kaleidofin (www.Kaleidofin.com), has closed Kenya’s first private-sector local currency securitisation in the smallholder agriculture sector, in partnership with agri-finance company Apollo Agriculture and with investment from the IDH Farmfit Fund, a blended finance impact fund, marking a significant step in developing institutional capital markets for rural lending.
This first-of-its-kind securitisation in Kenya demonstrates how structured credit markets can channel institutional capital toward smallholder finance.
The milestone transaction involved the securitisation of smallholder farmer credit for inputs with a value of KES 370 million, mobilising KES 276 million (approximately USD 2.1 million) in financing through the sale of these receivables, originated by Apollo Agriculture and covering a portfolio of 23,839 smallholder farmers, 51% of whom are women and approximately 22% first-time borrowers. The issuance was supported by an investment grade rating of BBB- from Agusto, marking a significant milestone in demonstrating the credit quality and investability of this asset class.
Structured through Kaleidofin’s ki platform, a dedicated debt capital market infrastructure, the transaction enables the conversion of granular agricultural loans into investable assets for institutional investors in local currency. Unlike traditional models that rely on rigid standardisation, the platform supports customised structuring of portfolios and risk segmentation, powered by Kaleidofin’s proprietary ki score, an AI-driven risk intelligence layer built on loan transaction, bureau and alternative data.
The structure allows originators such as Apollo Agriculture to recycle capital efficiently while aligning financing to seasonal agricultural cycles, and provides investors with improved visibility into underlying asset risk, helping reduce information asymmetry in an otherwise opaque segment.
For Apollo Agriculture, the transaction releases immediate liquidity and improves capital efficiency, enabling continued expansion of financing to smallholder farmers without increasing balance sheet leverage. In practical terms, this means Apollo can extend more loans to smallholder farmers, helping them access the seeds, fertilisers and tools they need to grow more crops and improve their livelihoods. This is made possible by Apollo’s unique credit tech stack, which allows the company to build accurate, real-time credit profiles for farmers and underwrite customers typically excluded from formal finance. Apollo’s platform combines satellite imagery of farm plots, machine learning models trained on agricultural yield patterns, and mobile-based data collection to assess creditworthiness in real time — without requiring the collateral or credit history that traditional lenders demand.
“This transaction demonstrates how innovative financial structures can unlock capital for smallholder farmers at scale,” said Roel Messie, CEO of IDH Investment Management, manager of the IDH Farmfit Fund. “Building investable opportunities in agriculture requires both capital and enabling infrastructure, and this partnership brings those elements together.”
“We designed the Kaleidofin platform to function as scalable market infrastructure for traditionally excluded customer segments such as smallholder farmers, women entrepreneurs, clean energy and small business,” said Sucharita Mukherjee, Co-founder and CEO of Kaleidofin. “By enabling customised structuring and data-driven risk insights via ki score, we are building the foundations for institutional capital to flow into sectors such as smallholder agriculture in a sustainable way.”
The transaction is expected to serve as a blueprint for similar structures across emerging markets, demonstrating how technology-enabled infrastructure and blended finance can expand access to capital for underserved borrowers while creating investable opportunities for institutional investors.
“This is a meaningful step in building efficient, scalable funding for smallholder agriculture and validates our tech-enabled business model.” said Eli Pollak, CEO of Apollo Agriculture. “By converting receivables into working capital, we are able to lower our cost of funds and expand access to affordable, local currency financing for farmers.” Financing in local currency is critical for farmers, as it protects them from the foreign exchange volatility that can dramatically increase debt repayment burdens. A lower cost of funds means Apollo can offer more affordable loan terms, reducing the financial pressure on farmers and making it more likely they can repay, reinvest in their farms, and build long-term financial resilience.
The IDH Farmfit Fund acted as anchor investor in the transaction, which represents the first step in a broader multi-year securitisation programme expected to mobilise approximately KES 2.37 billion and reach more than 130,000 farmers over time.
The transaction was supported by a broader ecosystem of partners working to develop the enabling environment for structured finance in agriculture. UK-funded specialist development agency, FSD Africa provided support across legal and regulatory structuring, investor engagement, and market development, while the UK’s flagship public markets programme, MOBILIST, contributed to tax and structuring guidance.
“This transaction showcases how well-functioning market infrastructure can catalyse institutional capital for sectors traditionally considered high-risk, like smallholder agriculture. FSD Africa’s role has been to help build the foundations — from regulatory clarity to investor confidence — that make transactions like this viable and repeatable. We see this as a blueprint for how structured finance can unlock sustainable, large-scale funding for inclusive growth across Africa,” said Dr. Evans Osano, Chief Financial Markets Officer at FSD Africa.
“By supporting FSDA to demonstrate and enable innovation like this, we aim to make it more efficient to mobilize domestic sources of capital for women’s economic empowerment,” said Mark Wensley, Senior Program Officer at the Gates Foundation.
British International Investment (BII), the UK’s development finance institution and impact investor, provided technical assistance to its investee Apollo Agriculture through BII Plus. The foundational funding strengthens its reporting and technology capabilities, enabling access to a scalable, KES-denominated funding model that significantly reduces FX risk while achieving a more efficient and sustainable cost of capital for its growing loan portfolio.
Distributed by APO Group on behalf of Kaleidofin Private Limited.About Kaleidofin:
Kaleidofin is a fintech platform building inclusive risk infrastructure and debt capital markets across Africa and South Asia. We work with over 60 SDG focused originators such as fintechs, agtechs, MFIs, digital lenders, and climate-focused enterprises that extend credit to smallholder farmers, women entrepreneurs, and informal MSMEs. Our solutions include data-driven underwriting (ki score), portfolio risk tools (ki monitor), and structured finance vehicles/SPVs (ki platform) that are designed to help originators unlock scalable, affordable local currency financing and better their risk management capacity. To date, Kaleidofin has enabled over USD 10billion in productive credit for over 11 million end customers. For more information, visit https://www.Kaleidofin.com/
About Apollo:
Apollo Agriculture is a technology-driven agricultural finance company that provides smallholder farmers across Kenya with access to credit, farm inputs, insurance, and advisory services. By leveraging alternative data and machine learning to underwrite customers traditionally excluded from formal finance, Apollo enables farmers to invest in productivity-enhancing inputs and climate-resilient practices. Through its integrated approach to financing and farm support, Apollo Agriculture aims to improve farmers' incomes and livelihoods while contributing to the development of sustainable, inclusive agricultural value chains. For more information, visit https://www.ApolloAgriculture.com/
About IDH Farmfit Fund:
The IDH Farmfit Fund is a blended finance impact fund for smallholder farmers, many of whom are amongst the poorest people in the world. The Fund can take the highest risk positions in smallholder farmer-related transactions, thereby reducing the risk currently borne by borrowers and lenders. By doing so, IDH Farmfit Fund aims to catalyse capital to co-invest in this sector. These investments will increase the availability of affordable, long-term financing to smallholder farmers, allowing them to invest in their farms, increase productivity and adopt climate-smart agriculture best practices, leading to improvements in their livelihoods and incomes. The IDH Farmfit Fund is facilitated by IDH Foundation, and supported by a unique coalition of partners, including commercial banks, development banks, government bodies and value chain companies. For more information, visit https:www.IDHSustainableTrade.com/Farmfit-Fund/
About FSD Africa:
FSD Africa is a specialist development agency established in 2012 by the UK Government, working to make finance work for Africa’s future. We work on the ground in over 30 African countries to mobilise “green plus” finance that will power economic and social development while delivering environmental gains and building Africa’s resilience. We work on policy and regulatory reform, capacity strengthening and improving financial infrastructure, and addressing systemic challenges in Africa's financial markets to spark large-scale and long-term change. Under its current strategy (2025-2030) the organisation seeks to mobilise £ 10 billion, improve access to basic financial services for 80 million and help create 200,000 jobs across Africa.
For more information, visit: https://www.FSDAfrica.org
