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									              REAP KENYA
                 REAP PROJECT

      CARE International in Kenya
             Presentation outline
Smallholders in Kenya

   Introduction
   The Produce and the market
   External Factors Influencing the market
   Main constraints faced by the smallholder
   Efforts by the GOK and others

Efforts by CARE – REAP Model

   Background
   Area of coverage
   Mission & Objectives
   The model
   Lessons learned
   Conclusion
• Although over 80% of Kenya is classified as ASAL it is
  gifted with rivers and water that allow for all year round
  production in horticultural produce for the domestic and
  export market.
• The last decade has seen the Agricultural sector undergo a
  revolution making it the 3rd largest contributor to the GDP
  at about 23% and the exports in the horticultural sub-
  sector exports have doubled from about 50000 tons p.a. in
  1991 to almost 100000 tons p.a. in early 2000.
• Due to it’s small scale production structure and it’s labour
  intensiveness it has contributed in a large way to
  employment and income generation for a large size of the
• Despite the growth seen in sector and the fact that over
  60% of the produce is contributed by the smallholder, the
  smallholder continues to be marginalised.
     The Produce and the Market
• Horticultural crops grown in Kenya include:
  tomatoes, kale, onions, sweet pepper, cowpeas,
  sweet corn, oranges, mangoes, French beans,
  papaws, citrus fruits, Asian vegetables,etc.
• Asian vegetables also known as Indian vegetables
  refer to Karella, Brinjals, Chilies, Okra, etc that
  originated from India.
• 90 % of the horticultural produce from Kenya go to
  the EU and 50 % of these go to the UK
• 40 % of the horticultural produce into the UK are
• 17 % of vegetables to the EU are ‘Asian’ vegetables
  with 15 % going to the UK alone
• Peak periods in April-June & Sept-Nov for Asian
    External Factors influencing the market
•European consumers do not just want good quality horticultural
produce, they also want to know that they have been produced
under ethically and environmentally sound
conditions….FPEAK,KFC,KEPHIS,HCDA,….all have a role to play
in/with MRLs,Code of practice,GAPs,etc
•World Trade agreements like the one currently in place after
Lome V which gives tariff concessions to the EU expires in
2007. Kenya is no longer considered to rank like a Least
developing country but instead a developing country.
•Poor infrastructure, e.g. roads, rail services,
telecommunications, etc.
•Rising competition from other emerging ACP economies e.g. for
Asian vegetables countries like Ghana and Uganda.
•Aids is affecting every sector. 1 out of every 10 adults in Kenya
has aids! It is affecting the labour force of the sector, its
affecting the level of income available of the farmer
Constraints faced by the small holder farmers

   • Limited Capital and access to credit to for inputs

   • Lack of modern irrigation technology

   • Poor quality seed

   • Expensive inputs – Chemicals & Fertilizers

   • Inadequate knowledge of modern growing techniques

   • Marketing – lack of market information and adequate

   • Inadequate skills in business techniques
            Effort of GoK and Partners

• The MoA KARI FPEAK UoN-KIP etc have all given extension
  services to the farmers.
• The MoA has a department that deals with irrigation;Min. of
  Water issues permits and educates on ‘water rules’; NIB;
  TARDA; UoN-KIP; FPEAK; KARI;USAID; etc have all played
  a role in trying to improve irrigation for the smallholder
• Duty relief on chemicals and fertilizers
• Ministry of Cooperatives assist to organise farmers coop.
  Groups while Ministry of Culture organise the smaller groups
  into ‘self help groups’.
• KEPHIS play a role indirectly as they are in charge of
  checking that exports meet expected standards
• HCDA is probably the biggest effort by the government to
  date to assist the smallholder i.e. the initiative of the cold
  stores/auction centres in conjunction with the Japanese
        CARE’s Role - The REAP project
The Background

•The CARE Rural Enterprise Agri-Business Promotion (REAP) Project was
initiated in early 2000.
•Originally, the REAP project was funded by IFAD grant under the CARE
Canada’s ROAD program.
•Other Donors supporting the project are CIDA & CARE USA.

•Other countries involved in the REAP programme include Mozambique,
Zambia, Ghana and Zimbabwe.

The REAP Project

•The project evolved from a joint agribusiness project proposal
developed by CARE Kenya in collaboration with FPEAK, KARI UoN-KIP,
HCDA and USAID who are all key players in the sector

•The first two farmers’ groups in the REAP project were groups that
emanated from a small growers scheme that was run by FPEAK & USAID.
                REAP Project Area
The Region
• The area of operation is ‘Greater Kibwezi’
• One of the lowest per capita income in the country
• Out of a total of 21,000 acres of ‘irrigatable’ land available only
  3,000 acres is used.
• 30 % of the Asian vegetables are produced in Kibwezi
• ‘Greater’ Kibwezi which is the target area located in Makueni
  District of Eastern Province. Makueni District is a semi-arid area
  approximately 200 km south east of Nairobi. Kibwezi, Makindu and
  Mtito Andei are the three divisions within Makueni where the
  REAP project is to be located.
• Horticultural production is carried out in several clusters of
  smallholder farmers concentrated along the many rivers (Kibwezi
  river, river Athi, Thange river, Makindu River, Mtito Andei river,
  Mang'elete river, Kambu river) that flow through the area
The Mission and Objectives

Specific Objectives

• Organize Farmers into groups

• Provide linkages with the market

• Provide linkages with the input and credit

• Provide Extension services

• Form a core management unit
                   The Implementation Model –
                       “Business Oriented Model”
The Current Implementation Model - “Business Oriented Model”

 Group Management             Market – Export &
 Committees/Boards            local contracts
 (Farm management)
                                                     Private Sector &
 Professional Farm               REAP                      Agencies
                                                     1     Credit
 /Technical Managers            Central              2     Agro-Inputs
 (Crop Management)
                               Management            3     Technical
                               Unit (CMU)                  Expertise
                              (Advisory and          4     Irrigation
                              Management role)
                                                     5     Extension Services
                                                     6     Market
 Production Units                                          information
 Including farmers &
 hired labour
Modus Operendi
                    Operational Method

• The REAP project consists of a team of experts in their
  fields,headed by a Business Manager who reports to a board.

• The farmers are organised into groups (PUs)of 30-50 members
  and they grow mainly Asian vegetables for export.

• The farms are run by a farm manager who is employed by the
  farmers & reports to a committee/board of farmers working
  initially under the advise of REAP

• The REAP management links the farmers to the market by
  negotiating an export contract

• The REAP management assists the farm manager make their
  production plan to satisfy the export contract

• The REAP management assists the farmers to make a business &
  investment plan to help build their financial base.
                  Operational Method

• The REAP project provides linkages with input suppliers and
  uses a ‘revolving fund’(ISF) to facilitate supply of inputs &
  any ‘loans’ given are repaid at the end of the cycle/quarter.

• The REAP project also offers the farmers assistance in
  acquiring modern irrigation infrastructure and systems
  through an Inputs Supply Fund (ISF) but this credit is
  payable over a longer period.

• Once the Units gain full managerial and financial autonomy
  which is expected to be in 2-3 years then the REAP
  management takes the funds repaid back from that unit and
  begins another unit.

• The first phase will have 5 viable units in place by June
Land-The Farming System
The People-Training
The Produce-Sorting
The Produce-Grading
                     Lessons Learnt

Lessons Learnt

• Emphasis on Farmer owned process rather than farmer
  managed – utilization of land, labour management, crop
  selection/mix, etc.

• Intensive capacity building necessary

• Group structure – Ltd. Companies, coops, etc.

• Selection criteria – priority to full time farmers with 1.5
  acres of land or less and earning their living from

• Viability = Sustainability

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