Kenyan Startup VunaPay Revolutionises Payments for Farmers

VunaPay, a Kenyan agri-fintech startup, is transforming how smallholder farmers receive payments. Founded in 2023 by Gatwiri Njogu-Mokaya, Koya Matsuno, and Ian Wambai, the company has introduced an instant payout system aimed at addressing the chronic issue of delayed payments from agricultural cooperatives.

The startup’s innovative platform integrates automated payment processing with cooperative management tools. These include real-time data management and inventory tracking, promoting transparency and efficiency in the agricultural value chain.

According to Matsuno, the startup’s COO, payment delays often push farmers into desperate situations. “This often forces them to sell produce to middlemen at reduced prices or rely on high-interest predatory loans. VunaPay’s instant payout system addresses this gap,” he explained.

A Growing Network and Rising Demand

Since its launch, VunaPay has onboarded 30 agricultural cooperatives, primarily in the coffee, maize, and dairy sectors. With over 20,000 farmers actively using its platform and 100,000 more on a waitlist, the startup is scaling rapidly. The company has facilitated payments worth approximately KES70 million ($550,000) to date, with growing interest from cooperatives and farmers alike.

The startup distinguishes itself by working directly with cooperatives to ensure fair and timely payments, unlike middlemen or predatory lending apps. Matsuno highlighted this as a key advantage: “VunaPay’s integration with cooperatives ensures transparency and trust, which is essential for scaling our operations.”

Backed by Big Players

VunaPay’s growth has been fuelled by funding from venture capital firms like 54 Collective and Lifetime Ventures, as well as grants from Heifer International and MIT Solve. Its innovative approach has earned it recognition from accelerator programmes such as Antler, MIT Solve, and Safaricom Spark.

Looking Ahead

Currently operating exclusively in Kenya, VunaPay plans to expand into other value chains like tea while increasing its reach within the country and eventually across Africa. With the transparency and efficiency of its platform resonating strongly, VunaPay seems poised to become a major player in addressing the financial challenges faced by smallholder farmers.