Catherine Poran, the Stanbic Business Incubator Chief Executive speaking to the farmers recently
HABARI DAILY I Kampala, Uganda I The lives of horticulture farmers in Bunyoro will never be the same again after getting into a joint venture agreement with KK Foods, with support from Stanbic Business Incubator. This is a development that is expected to transform smallholder agriculture into a lucrative, export-driven enterprise while opening doors to international markets.
As a result of this joint venture with KK Foods, one of the biggest local horticulture exporters, farmers Hoima, Kikuube, and all over the region, will be able to sell their products in Western Europe, including the United Kingdom, with the goal of raising incomes and gaining a presence in the global market.
As beneficiaries of a training programme, the farmers under the Albertine Farmers Association (AFA) signed a Memorandum of Understanding (MoU) with KK Foods, exporters of fresh horticultural products, marking a major shift from subsistence-oriented production to a structured, market-led farming model.
Farmers attending a briefing session from a trainer, Nicholas Atukwase
The partnership, launched at Ageteraine Agro-Processing Facility in Hoima City over the weekend, is already being hailed as a breakthrough that will deliver multiple benefits to farmers, ranging from guaranteed markets and improved incomes to skills development and integration into global value chains.
Speaking at the launch, the Chairperson of the Association, Julius Kwamya, underscored the strategic focus the farmers are adopting to maximise returns from the venture.
“During the training, we agreed on the way forward. We agreed to start with hot pepper and chilli for now, but we will scale to other enterprises. We believe this is an opportunity for growth, in different aspects, because hot pepper and chilli have a high turnover, moreover with a short-term period in the garden,” Kwamya said.
By focusing initially on high-demand, quick-maturing crops such as chilli and hot pepper, farmers are positioning themselves to benefit from faster cash cycles, which is critical for improving household incomes and reinvesting in production.
Growing international demand
The opportunity is further amplified by growing demand in international markets. Demand in the European market is expanding due to immigration-led culinary diversification and rising interest in exotic, spicy flavours, with leading importers of fresh chilli including France, Spain, the UK, and Germany.
For Bunyoro farmers, this translates into a reliable and expanding customer base—an advantage that has long eluded many rural producers who often struggle with unstable local markets and price fluctuations.
The joint venture itself is one of the major outcomes of an August 2025 capacity building workshop that saw over 30 horticultural farmers trained by Stanbic Business Incubator Limited (SBIL) under the Albertine Agribusiness Development Programme (ADP) in partnership with the Uganda National Oil Company (UNOC).
Beyond market access, the training has equipped farmers with critical agribusiness skills, enabling them to meet export standards and operate competitively. This combination of skills and market linkage is expected to significantly reduce post-harvest losses and improve product quality—key factors in increasing profitability.
Kwamya revealed that the association currently has 1,930 members registered, with a target of hitting 10,000 before the end of 2026, a sign of growing confidence among farmers in the viability of horticulture as a commercial venture.
However, he pointed out that challenges such as limited extension services could hinder productivity if not addressed, calling on government to strengthen support systems at the grassroots.
Bridging the gap
Catherine Poran, the SBIL Chief Executive, emphasised the importance of bridging the gap between production and markets, noting that this has been a longstanding bottleneck for farmers.
“It is so good to see that farmers are putting theory to life. We are seeing farmers being linked to markets. It is one thing for farmers to grow food, but it is another to link them to markets, and see the fruits of their labour. At Stanbic Business Incubator, our mandate lies in supporting enterprises to scale and reach their potential, all in line with our purpose of driving Uganda’s growth,” she said.
Her remarks highlight one of the most immediate benefits of the joint venture: assured market access. With KK Foods committing to purchase produce, farmers are shielded from the uncertainties of middlemen and volatile pricing, allowing them to plan production with confidence.
Dr James Kanyije, the KK Foods CEO said that if well funded by SBIL and UNOC, the venture will create the biggest amount of employment in Bunyoro.
“Food production is set to increase, farmers will get extremely high improved incomes, the export volumes will increase with improved quality and consistency in supply, increased foreign Exchange Etc.
“We as a country will be able to utilize the New Kabalega international airport which is strategically located in the region. Employment will be created at all levels along the value chain, from production, processing up to exit point,” he said.
50 tonnes per week
Nicholas Atukwase, a Production Manager with KK Foods, outlined the scale of opportunity available to farmers under the arrangement.
“We need those products to be at least 50 tonnes per week. Farmers will benefit, because there is a lot of demand for products like chilli and hot pepper. As farmers, all they need to uphold are the pillars of quality, quantity, consistency, meet customer requirements, and regulatory guidelines,” he said.
This demand presents a clear incentive for farmers to expand production and adopt better farming practices. Meeting these requirements will not only unlock export earnings but also instil discipline and professionalism within farmer groups—an essential ingredient for long-term sustainability.
From a broader economic perspective, the initiative is also aligned with national efforts to ensure that local communities benefit from large-scale investments in the Albertine region, particularly in the oil and gas sector.
Percy Mucunguzi, the National Content Officer in Charge of Measurements and Reporting at UNOC, said the farmers’ collective approach is a model worth emulating.
“These farmers have done a great job in teaming up and picking up other farmers along the way. You will agree with me that even if we had billions, it would not be easy to reach everywhere. We always encourage cascading of knowledge. Since we have the mandate to build the capacity of Ugandans, we must support these processes and see all the outcomes come to fruition,” he said.
Mucunguzi advised farmers to diversify into other enterprises to further boost their incomes.
“We cannot just look at oil and gas, because it is the hot cake in this region. We have to look at all the other services that support oil and gas, and one of them is the supply of food, medical services, insurance, transport, and others. So, it is important that we look at it in that way, because that is how benefits flow from oil and gas to the rest of the economy,” Mucunguzi said.
For farmers, this means the joint venture is not just about exporting chilli, but also about positioning themselves within a wider economic ecosystem that promises multiple income streams.
However, access to international markets comes with strict compliance requirements. Emmanuel Blair Niyitegeka, a Senior Agricultural Inspector at the Ministry of Agriculture, stressed the importance of meeting quality and safety standards.
Hoima Farmers sorting Hot Pepper to package it for export
“Hot pepper products have high demand, especially in Europe, the Middle East, and some Asian countries. However, to access this market, there are standards that the products must meet,” he said.
“One of them is that the pepper must be free from pests, which we call harmful organisms. Therefore, to supply in those markets, a farmer must make sure that they control pests at the farm by installing insect traps, and then monitor the farm to make sure that all the pesticide is applied well. By the time of harvesting, the farmer must make sure that the product is free from pests. Even when applying the pesticide, the farmer must make sure that he applies it at the right time, with the correct dosage,” he said.
While these standards may appear demanding, they ultimately benefit farmers by improving product quality, reducing rejection rates, and enhancing Uganda’s reputation in export markets.
Dr Charles Kajura, the District Production Officer of Hoima, highlighted the importance of traceability in maintaining quality control.
“KK Foods asked us to make sure that our farmers are certified to produce for the export market. In other words, they are supposed to get codes. Each farmer must be coded. Coding means that you will have your farm identified, specifically so that whatever we get from your farm is coded, and when it goes to the export market and we find any problem, we shall come back to your farm without any hesitation and be able to follow up in terms of quality control,” he said.
Such systems not only ensure accountability but also build trust with international buyers—an essential factor in securing long-term contracts.
Extension services
To address the challenge of limited extension services, Dr Kajura said authorities are promoting group-based approaches and community-led support systems.
“We want to focus on the group approach. We are asking these farmers to organise themselves into groups so that the extension worker can meet them all at once. Instead of going to individual farmers, which will be impossible, we can go to the groups of farmers organised in a given locality and handle them together,” he said.
“We are also exploring the aspect of using Community-Based Facilitators (CBF). We want to train these community-based facilitators hands-on, so that when our extension workers are not there, they are able to provide the services. We have selected two CBFs per Parish, and now we want to give them skills, so that they can help us to extend some of the information to the farmers,” Dr Kajura said.
With these measures in place, the joint venture is poised to deliver lasting impact, turning horticulture into a dependable source of income for thousands of farmers.
For the farmers of Bunyoro, the agreement with KK Foods represents more than just a business deal—it is a pathway to financial stability, global market integration, and a future where agriculture is not merely a way of life, but a thriving enterprise.
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