Safaricom’s agritech platform DigiFarm has launched a cash-advance product aimed at easing short-term cashflow pressures for Kenya’s smallholder tea farmers, whose incomes are often delayed between crop delivery and factory payouts.
The facility, branded Jipange Cash Advance, is being rolled out in partnership with Access Bank and participating tea factories. It allows farmers to access funds through M-Pesa based on the tea they have already delivered, with repayment deducted automatically once factories release payments.
Tea supports nearly one million growers and more than 6.5 million dependants, according to the Tea Board of Kenya, and contributes over KSh 200 billion annually to the economy. However, many smallholders face cash constraints because of prolonged payment cycles.
“Our farmers work tirelessly every day, yet many still struggle to make ends meet because of delayed payments,” Safaricom CEO Peter Ndegwa said. “Jipange Cash Advance will provide greater peace of mind, ensuring farmers can put food on the table, pay school fees and plan for their families.”
The product has been piloted across four tea factories in the Rift Valley. DigiFarm plans to scale it nationwide and later adapt the model for dairy farmers.
Farmers in partner factories and dairy cooperatives can access the service by dialing *944# on their phones.