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Consortium approach to commercializing beans trade in Kenya
Members of the Nakuru County Beans Consortium sign MOU
In Kenya, most of the interventions in the beans value chain have focused on production with little efforts on access to markets. This makes both producers and traders incur high costs and inefficiency in searching for trading partners, negotiating, bargaining and contracting. When the markets are structured, it incentivizes farmers to produce in surplus as they are assured of efficient markets. The traders are also guaranteed of steady supply for their end markets. Hence structuring markets foster competition, increase returns accruing to both producers, traders and other service providers as there are decreased transaction costs. While BEST-EAC may not be a panacea to all the problems in
the beans value chain, its unique market driven approach using the consortium model is geared towards ensuring that farmers have a ready market while traders have reliable supplies.
The period January – March, 2016 saw 3 beans consortia being established in Kenya with the first two launched at Great Lakes Hotel, Kisumu on 4th March, 2016. This came against a backdrop of various activities that were conducted by the BEST-EAC Project. The three fully formed consortia are: Kisumu County Beans Consortium (KiCoBeCo), Siaya County Beans Consortium (SiCoBeCo) and Nakuru County Beans Consortium (NaCoBeCo). A fourth consortium; Eastern Beans Consortium (EaBeCo) is in the process of being formed. Each consortium has its members constituted from institutions working along the different nodes of the beans value chain.

Yash Commodities Ltd a leading bulk trader in Kenya is the lead firm and the off-taker for both KiCoBeCo and SiCoBeCo, Zero Two Heroes Ltd is the lead firm and the
Mr. Jackson Kachelo County Agri-business Development Officer at the Ministry of Agriculture, Livestock and Fisheries, Kisumu addresses members of the two consortia
off-taker for the NaCoBeCo while Mwailu Enterprises Ltd takes the lead firm role in EaBeCo. Though harvest is expected in July 2016, 15MT of yellow green beans that were earlier bulked by Tang ni dhier FBO in Homa Bay County were supplied to Yash Commodities Ltd as result of the formalized relationship.

For more information about
BEST-EAC project,
Please contact:
Prisca Githuka, Team Leader;
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Telephone:
+256 392 264 980/1/2
Website: www.kilimotrust.org
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