KCB, Mastercard Launch Digital Payments Project for Dairy Farmers

KCB Bank Kenya, Mastercard, and Heifer International Kenya have launched a nine-month pilot to digitize payments and transaction records for 30,000 smallholder dairy farmers, in an effort to make it easier for farmers to access formal financing. 

• The Farmer Visibility Project will work with dairy farmers and cooperatives to record milk deliveries, payments, savings and input purchases digitally. 
• The resulting transaction histories are intended to give lenders a clearer view of farmers' cash flows and business activity, potentially improving access to credit and input financing.
• The initiative targets a weakness in the dairy economy where farmers often operate through cash payments and informal records, leaving little financial evidence of their production or income. 

Meanwhile, delays in payments through cooperatives can also create cash-flow problems and encourage farmers to sell milk through informal channels.

“Smallholder farmers are entrepreneurs. They are business owners, suppliers, employers and investors in their communities. Yet many remain invisible to the financial systems and markets that could help them grow,” said Wairimu Munyinyi-Wahome, Country Director - Heifer International Kenya. 

“This is more than digitizing transactions. It is about recognising farmers as business people, giving them greater control over their own data and ensuring that digital technology creates real economic opportunities,” she added. 

Mastercard will provide its Farm Pass capabilities through its Community Pass platform. The system will create digital farmer profiles and record transactions across the dairy value chain including payments and input purchases. The platform is also intended to support card issuance and digital payments in rural areas where access to formal financial services remains limited.

“By helping farmers build secure digital transaction records, we are not only supporting greater financial inclusion but also creating stronger foundations for long-term growth and resilience for dairy farmers across Kenya,” said Shehryar Ali, senior vice president and country manager for East Africa and Indian Ocean Islands - Mastercard. 

On the other hand, KCB Bank will handle farmer account opening, digital payments and card issuance, while supporting agents and merchants that accept digital transactions. It will also provide access to financial products including credit, savings and insurance.