Safaricom’s DigiFarm Launches Instant Cash Advance to Support Kenya’s Tea Farmers
DigiFarm, Safaricom’s flagship Agritech platform, has officially launched “Jipange Cash Advance,” a new financial product designed to bridge critical cashflow gaps for Kenya’s massive base of smallholder tea farmers.
Launched in partnership with Access Bank and local tea factories, the facility aims to address the perennial challenge of delayed payments, enabling farmers to access funds based on their tea deliveries prior to the official factory payout date.
According to the Tea Board of Kenya, the sector is the economic lifeline for nearly one million farmers, supporting over 6.5 million people and contributing more than $1.5 billion (KES 200 billion) annually to the economy. Despite this massive contribution, many smallholders struggle with financial vulnerability due to the time lag between harvest delivery and income receipt.
“Our farmers work tirelessly every day, yet many still struggle to make ends meet because of delayed payments. 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,” said Peter Ndegwa, CEO of Safaricom PLC.
“As Safaricom, we are proud to stand with farmers, because when our farmers thrive, our communities and country thrive too,” he added.
How It Works
The Jipange Cash Advance utilizes Safaricom’s M-PESA infrastructure to offer instant credit. The model is built on data visibility; funds are advanced based on the verified volume of tea delivered to the factory.
Crucially, the loan requires no collateral. Farmers can access the facility via USSD by dialling *944#. Repayments are automatically deducted when the factory processes the final payout.
The product has already undergone a pilot phase, serving farmers across four factories in the Rift Valley. DigiFarm says the goal is to scale the product to all eligible tea farmers across Kenya, with plans already underway to expand the offering to dairy cooperatives in the near future.
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