NTF (Netherlands Trust Fund) III

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Project Status:

Completed

Regions:

Meru, Murang’a, Nakuru, Machakos, Nyandarua, Nairobi, Mombasa, Kiambu

Value Chain Impact Areas:

Technology, Market Access

Development Partner:

Kingdom of Netherlands, International Trade Centre (ITC)

Project Budget:

$1M

The Netherlands Trust Fund III (NTF III) Project was designed to boost the export potential of
Kenya’s fresh produce sector, focusing on fruits, vegetables, and flowers. This initiative was
funded by the Dutch Centre for the Promotion of Imports from Developing Countries (CBI) and
carried out by the International Trade Centre (ITC) in partnership with the Kenya Export Promotion
and Branding Agency (KEPROBA). The main goals were to improve market access, strengthen
business connections, and ensure compliance with international standards.

The project specifically targeted small and medium-sized enterprises (SMEs), cooperatives, and
exporters, helping them enhance their understanding of export market requirements, improve
business management skills, and adopt digital trade solutions. Additionally, it provided direct
access to European markets, ensuring that Kenyan fresh produce adhered to the strict quality,
safety, and sustainability standards demanded by international buyers.

Implementation Status

  • Export Readiness & Compliance Training: More than 50 horticultural SMEs and
    producer groups underwent comprehensive training focused on accessing export
    markets, enhancing business competitiveness, and achieving GlobalGAP certification.
  • Digital Trade & Market Linkages: The project implemented e-commerce solutions and
    B2B matchmaking initiatives, allowing exporters to connect with European buyers via
    online platforms and in-person trade fairs.
  • Sustainability & Value Addition: NTF III encouraged environmentally friendly farming
    methods, improved post-harvest handling, and value-added processing to assist Kenyan
    horticultural exporters in meeting the increasing demand for organic and sustainable
    products in European markets.
  • Strengthening Trade Associations: The initiative collaborated closely with the Fresh
    Produce Exporters Association of Kenya (FPEAK) and the Kenya Flower Council (KFC)
    to advocate for policies that facilitate trade and alleviate logistical challenges in the export
    supply chain

Key Findings

  • Enhanced Market Penetration: SMEs supported by NTF III saw a 25% increase in their
    exports to Europe, with many establishing long-term supply agreements with Dutch and
    other EU importers.
  • Higher Export Revenue: Companies involved in the program reported an average
    revenue increase of 20%, thanks to improved market access and enhanced product
    quality.
  • Improved Compliance with EU Regulations: Through capacity-building workshops, the
    number of participating exporters achieving GlobalGAP certification rose by 40%, leading
    to a decrease in shipments rejected for not meeting European food safety standards.

Despite the potential that lay within the digital space for SMEs, there was an observable digital
divide in the regions of project implementation -which were mainly rural- which consequently
limited the impact of the project. In addition to the digital divide, the exclusion of some SMEs due
to the project’s focus being those with the potential for scaling, and low access to finance were
also identified as the major gaps for the project.