Transitioning from Financial Lending to Agro Production

Lactone Investments was registered as a business name in February 2017 to provide financial lending services to smallholder farmers and agro-value-added micro-enterprises. However, in 2020, the COVID-19 pandemic disrupted the business and most borrowers were unable to repay their debts. Therefore, in March 2022, Lactone Investments Ltd Company was incorporated as an agro dealer company to produce, aggregate, and process the drought-tolerant, orphaned cassava and sorghum crops.

Due to the changing climate and the COVID-19 pandemic, the prices of wheat, rice, and oil have skyrocketed. In Kenya, the price of bread increased by 65%, making it difficult for low and middle-income households in Africa to afford this common table meal. We therefore identified an opportunity to produce and promote cassava commercially as a substitute for wheat and to ease the pressure on rice and maize imports.

Cassava (Manihot esculenta Crantz) is a major perennial food crop in Sub-Saharan Africa, commonly consumed among low-income communities. It is a versatile tuber crop that can survive in diverse climates and soil conditions, tolerant to low soil fertility, and is resistant to diseases and pests.
We grow cassava on 14 acres of land and we estimate to expand to over 40 acres by May 2025. We have also ventured into cassava seed bulking to produce high-quality and disease-free cuttings for high productivity. We own 4 acres of MM96/0686 cassava variety seed farm in Lambwe area of Homabay.
In addition to cassava, we commercially produce and aggregate sorghum on over 10 acres in Lambwe as a seasonal crop to supplement the perennial cassava crop.