Avenews, a Kenyan agricultural fintech lender, has partnered with distributor Paves Vetagro Ltd to expand working-capital financing for agro-dealers and stockists across Western Kenya, deepening efforts to ease liquidity constraints in one of the country’s busiest agricultural trading corridors.
The partnership targets agribusinesses operating across Trans Nzoia, West Pokot, Bungoma, Kakamega, Vihiga, Busia, Siaya and neighboring counties, where seasonal demand for farm inputs, livestock products and grain creates recurring financing needs. By embedding credit within existing distribution networks, the companies aim to help businesses replenish inventory, strengthen supplier relationships and meet peak trading demand.
Western Kenya is among the country’s largest agricultural marketplaces, with billions of shillings worth of cereals, livestock, veterinary products and farm inputs moving through commercial hubs such as Kitale, Bungoma and Kakamega each season. Despite robust demand, many small and medium-sized distributors continue to face working-capital shortages that limit their ability to expand.
“Most businesses already have customers and reliable suppliers. What slows them down is cash flow,” Emmanuel Murai, Avenews’ Business Development Director, said during the partnership launch in Kitale. “Our financing gives them the liquidity to stock up when opportunities arise. As they repay, they qualify for additional financing, creating a continuous cycle that supports business growth.”
Founded more than two decades ago, Paves Vetagro has established itself as one of Western Kenya’s largest agricultural distributors, supplying crop protection products, seeds, fertilizers, animal health products, animal feeds and farm equipment through an extensive dealer network. The company said its regional footprint positions it to extend financing solutions to businesses that have historically struggled to access formal credit.
The financing will support enterprises across cereals, dairy, poultry, livestock, horticulture and animal health value chains, allowing merchants to increase purchasing power without disrupting cash flow during seasonal procurement cycles.
The agreement reflects a broader shift in Kenya’s agricultural finance sector toward embedded lending models, where financing is delivered through trusted distributors and supply-chain partners rather than traditional banking channels. Such models allow lenders to leverage existing commercial relationships while improving access to credit for small and medium-sized agribusinesses.
The Kitale initiative forms part of Avenews’ nationwide expansion strategy, with the company planning further engagements across Western Kenya in July as it seeks to onboard more stockists and distributors. Insights gathered from the region will also inform the company’s expansion into other high-potential agricultural markets across Kenya.
Established in 2017, Avenews focuses on financing agricultural SMEs through partnerships with distributors, aggregators and other ecosystem players. The company says its model is designed to help address Africa’s estimated $65 billion agribusiness financing gap by improving access to working capital for businesses operating along agricultural value chains.