The agricultural sector faces numerous challenges, at the top of which is the impact of climate change. Another challenge is access to finance, primarily due to lenders classifying the sector as high-risk. An example of a company that faced such challenges is Shamba Pride, an agritech startup.
“When I started out, the banks were asking me for collateral that I did not have since I was just a startup. When I approached some private investors, they simply did not think agriculture was a sector trendy enough to invest in,” said Samuel Munguti, the Shamba Pride CEO.
With doors fast closing on the company, Shamba Pride needed to have an alternative source of financing. The European Investment Bank’s (EIB) financial support, delivered through the Boost Africa programme, has been pivotal in Shamba Pride’s success. From humble beginnings, the Kenyan agritech company has scaled into a nationwide network, providing farmers with trusted inputs, markets, and training, while strengthening local agro-dealers.
For years, smallholder farmers in rural Kenya faced the same obstacles: counterfeit fertiliser, high transport costs to distant towns, and unreliable markets for their crops. Most relied on little more than intuition and limited resources to grow maize, beans, or vegetables, often with poor returns.
“When you talk to farmers across villages in Kenya, they will tell you the main challenges are access to credible, affordable inputs, access to markets, and access to training,” said Samuel Munguti, Founder and CEO of Shamba Pride.
Founded with just four employees, Shamba Pride saw the opportunity to use technology to bridge these gaps. Its “Digi Shops”, digitalised agro-dealers, connect farmers to trusted inputs, agronomist advice, and credit through a simple mobile platform. However, building out this model at scale required capital and a structured approach.
“We were introduced to the Boost Africa programme by Seedstars Ventures, a private equity fund backed by the European Investment Bank. Our first cheque was 500,000 US dollars, and that unlocked many opportunities for us,” said Munguti. “Over time, Shamba Pride has taken shape and built structures. We now have an experienced head of finance and a strong team. The contribution of the Boost Africa programme in terms of early-stage funding, technical assistance and strategic advice has been significant in our growth journey.”
Shamba Pride is one of dozens of African companies supported by Boost Africa, a joint initiative of the EIB and the African Development Bank, with support from the European Commission under the EU’s Global Gateway strategy. The Boost Africa programme invests in private equity funds, which, in turn, fund startups and high-growth companies on the continent. In Shamba Pride’s case, it was Seedstars Africa Ventures that provided the crucial early investment and technical guidance.
“At Shamba Pride we believe that funds and financial partners such as the European Investment Bank are very important, particularly those that support local early-stage business capital needs rooted in the African context,” said Munguti. “They play a crucial role in spurring development.”
The results have been transformative. Shamba Pride now employs more than 40 people directly on its payroll, works with 4,000 agro-dealers, and reaches over 80,000 farmers across Kenya. Many report productivity gains of up to two and a half times compared to their previous performance. Financially, the company’s revenues have surged from just 5 million shillings in 2021 to nearly 300 million shillings three years later.
For farmers, the change is tangible. Fertilisers and inputs are delivered closer to home, saving both time and cost. Training ensures they know how to apply inputs effectively, boosting yields and incomes. For agro-dealers, sourcing stock no longer means a day-long trip to towns like Machakos or Nairobi. Orders are placed online and delivered directly. “Agro-dealers appreciate Shamba Pride stock warehouses where they can order supplies conveniently, saving time and money while focusing on their farms,” Munguti explained.
Behind these results is patient capital. So far, the EIB has committed €78 million to six private equity funds, which have invested in more than 70 firms and provided technical assistance to many more. The focus is on businesses that create jobs, particularly for women and young people, while solving pressing local challenges.
“Access to finance and capital remains key in unlocking impact and growth,” said Munguti. “The European Investment Bank has been a vital partner, deploying capital to early-stage companies. This support has been crucial in unlocking growth, creating jobs internally, and generating opportunities for thousands of farmers and agro-dealers across Kenya.”
For Shamba Pride, the support has meant more than numbers on a balance sheet. It has meant empowerment, including farmers accessing reliable supplies, agro-dealers becoming digitally savvy entrepreneurs, and rural communities building resilience through the use of technology.
As Munguti put it, “The story of Shamba Pride shows how, with the right investment at the right time, African agriculture can leap forward, one Digi Shop at a time.”
Watch how Shamba Pride is growing stronger thanks to EU funding:
