In Kenya’s Mumias Sugar Company region, where sugarcane fields stretch as far as the eye can see, a young man named Erick Bosire grew up witnessing the struggles of local farmers.
His parents worked in the sugarcane industry, and he keenly observed the challenges they and other smallholder farmers faced.
Delayed payments, low income from long-term, low-value crops, and the looming threat of climate change all cast a shadow over their livelihoods.
But rather than simply accepting this status quo, Erick decided to take action.
After graduating from Kenyatta University with a Bachelor’s degree in medical laboratory sciences, Erick embarked on a journey to leverage technology and innovation to transform the lives of these farmers.
“I used my research knowledge to analyse exactly what these farmers were facing and realised they lacked information on the high-value crops they could venture into, proper irrigation equipment’ that could enable them to shift to high-value crops, and finances to help them invest in these technologies,” the managing director of Irri-Hub Ke said during an interview with the Business Daily.
He founded Irri-Hub Ke Venture, a company with a mission to supply climate-smart irrigation materials, including solar-powered pumps, to smallholder farmers.
Passion as a Catalyst for Change
Although he lacked formal expertise in agriculture, his deep-rooted passion for the well-being of farmers and his determination to make a difference propelled him forward.
Armed with a strong research background, he meticulously analyzed the challenges facing smallholder farmers and identified key areas where he could intervene.
A Mission Beyond Profits
Irri-Hub Ke Venture’s mission goes beyond profit generation. While the company aims to help farmers increase their income, it is equally committed to addressing the pressing issue of climate change and its impact on food security.
Erick believes that resilience in the face of climate change is crucial for both individual farmers and the country as a whole. By facilitating the transition from traditional, low-value crops to high-value alternatives and providing the necessary irrigation equipment, Irri-Hub Ke Venture is working toward this goal.
From Bootstrapping to Growth
In the early days of the company, capital was a scarce resource.
However, Erick and his partner embraced the concept of bootstrapping.
“My partner, who has a finance background, and I started by bootstrapping – getting finances from family, and friends and using the initial investment of Sh 500,000 to get hold of first clients and inject all the profits back into the business,” Erick said
The profits generated were reinvested into the business, fueling its growth.
Since the company commenced its operations in 2017, it has experienced remarkable expansion, employing 11 individuals on a full-time basis and an additional three on a part-time basis.
During this time, the company has served over 2,000 farmers throughout the country, leading to a threefold increase in their productivity.
Strategic Partnerships
Entering a market dominated by long-established players posed a significant challenge. To overcome this obstacle, Irri-Hub Ke Venture adopted a strategy of forming strategic partnerships with other small and medium-sized enterprises (SMEs) in the same sector.
“There are giants who have been in this industry for more than 20 years and we realised that if we are not very strategic, then we may not penetrate, so we came up with different strategies, one being creating strategic partnerships with other SMEs within our age space that were yearning for growth,” says the medic.
This collaborative approach allowed them to tap into complementary resources, expand their reach, and grow faster than they could have as standalone entities.
One of the key factors that set Irri-Hub Ke Venture apart from its competitors was its customer-centric approach.
The company took the time to understand the specific needs of farmers and responded with flexible payment options.
Offering a three-installment payment plan provided a significant advantage and demonstrated a deep commitment to meeting farmers’ requirements.
Innovation as a Competitive Edge
Innovation played a pivotal role in Irri-Hub Ke Venture’s success. The company incorporated Internet of Things (IoT) technology into its irrigation systems, allowing even the smallest farmers to control their systems using their smartphones.
This level of control and automation was unmatched in the market and served as a testament to the company’s commitment to advancing agricultural practices.
Overcoming Funding Challenges
Securing adequate funding, especially patient capital, proved to be one of the most significant hurdles. Erick acknowledged that their work required patient investors who understood the nature of their business and were willing to provide long-term funding.
While challenges in this area persisted, progress was being made, with impact investors showing interest and a willingness to extend credit over extended periods.
A Vision for the Future
Erick’s vision for Irri-Hub Ke Venture extends far beyond Kenya’s borders. He envisions spreading the company’s impact across East Africa, starting with Rwanda and Ethiopia within the next three years and expanding further to Zambia or Ghana within the next five years.
To achieve these ambitious goals, the company is actively seeking additional capital from investors, convertible debt, equity, and grants from organizations that share their mission.
